Summary – The globalization of technology

The article re-examines the new term ‘techno-globalism’. The term describes the phenomenon of
globalization experienced by the world of invention and innovation. The term originated in media but
has been quickly adopted by the academic world. The term can have a lot of different meanings
depending on author and context.

The article describes the common assumption that globalization will reduce the role and scope of
nations. Some believe that national is the ‘opposite’ to ‘global’. In this case, the effectiveness of
national policies for promoting and organizing technological advance Is reduced.

The aim of the article is to develop a new taxonomy, defining three distinct categories of
technological globalization.

a. the global exploitation of technology

a. This is the consequence of the increase of international trade, not the cause
b. If a firms output is absorbed by foreign markets, it is natural that they will try to take
advantage of their technological capabilities internationally
c. Studies in this field has shown:
i. Technology intensive products is more likely to be traded internationally
ii. A domestic technological capability is necessary for successful export
iii. Technology can be exploited in foreign countries even when disembodied
through licensing and transferring know how
d. One way to measure the foreign exploitation of innovations is to see how a company
put in efforts to protect their patents in other countries. Applying for patents in
countries where no other activities are planned is used to block competitors.

b. global technological collaboration

a. Non-profit (EU etc.)
i. More likely to share know-how and disclose results
b. Business
i. Less likely to share know-how than non-profit but more likely than general
belief

c. the global generation of technology

a. Technological equivalent of direct foreign investment
b. Applies to a single actor, the multinational corporation
c. Generates inventions globally

The article presents the question “Has technology become more important in today’s economies?” If
this was true, globalization of technology would simply reflect the increasing national efforts to
innovate.

A table shows the average growth rates of total R&D, industrial R&D and patenting in 20 different
countries. Investments in R&D are very sensitive to economic conditions and it’s easy to see in the
tablet that it reflects the economic climate over the years very well. It would therefore be pretty
logical to think that the number of patent applications would follow the same pattern as the
applications are sent in by firms. In fact this is not the case. In many cases, the application rate has
been both neutral and negative even when having good economic growth.