➢Does technology enlarge the gap between rich and poor countries

Arguments in favour:

(Technology enlarges the gap between rich and poor countries)

- high income countries can adapt new technologies better (they already have the infrastructure, the

capital for adapting it, the complementary processes)

-> example: Tesla in California cooperating with Uber to check how can self driving cars provide

services without a driver, this would not be possible in a low income country that does not have good

infrastructure

- they have the capacity to conduct intensive research

- rich countries can export capital intensive technologies

- rich income countries have the capacity to diffuse knowledge faster

- these countries use knowledge spillovers which help them with developing innovations

Arguments against:

(Technology bridges the gap between rich and poor countries)

- poorer countries

- development of appropriate technologies that match the needs of the region

- government taxation does not incentivise low income countries to adopt new technology

- use of existing systems and development of infrastructure

- tacit knowledge, they have a skills gap

- investing in actors who can implement technological advancement

➢In transforming technological developments to economic growth, is governmental support needed? If

yes, is it needed more in the fourth industrial revolution than in that of earlier ones?

- policy makers have to have a look at the gains new technology brings

- the case of Slovenia -> subsidies of adopting central heating that runs on air, this is lowering their

dependence on the Russian gas

- Uber driver, an employee or self employed? Government should take care of the social protection to

promote innovation

Countries can leverage First mover advantage- at the critical time when the developments are being

made/still new

Development of appropriate technologies matching the needs of the local context e.g. Africa-used tech for

communication vis a vis internet usage because it met the immediate need. Also despite mobile

penetration increasing, support sectors such as online banking etc not following simultaneously. Also the

nature of industries with informal engagement and fear of govt taxation discourages having stringent

record keeping.

Use of existing systems and development of infrastructure to support implementation of new technologies-

internet infrastructure

Development of soft infrastructure such as tacit knowledge where necessary

Leapfrogging as an opportunity to skip certain stages –also saves costs that would have been invested in
technological research etc. Focusing on what the local context can provide for instance delegating certain
roles e.g. incentivising research for universities to focus on while the govt focuses on macro-level structure
Investing in the actors to implement technological advancement –including socialisation around the
technological advancement to tackle anxieties

➢ How could social and cognitive proximity benefit low income countries?

- Spillovers

- Values chains

- Globalisation

- Improving education in low income countries so that everyone can have the same knowledge base

- Legal boundaries between countries would have to be eased when it comes to promoting innovation

through social and cognitive proximity

- Attracting foreign skilled labour to teach how to use new technologies

- Cognitive and social proximity run the risk of missing on innovation as ideas are repeated over and

over in the same group

Develop broader scope of focus when discussing and planning technological transfer–beyond geographic

consideration to the nature of technological transfer

Avoiding echo chambers and group think in cases where cognitive proximity creates a self-reinforcing

mechanism, which creates a sense of permanence of ideas where countries at lower stages of development

are being left behind on one hand and on the other hand advanced countries could end up replicating the

same ideas

Draw parallels between the same industries across different countries/capability centres where countries

that are more advanced can have specialised industry engagement with less advanced countries to enable

them incorporate tech further

Digitalisation providing linkages but in turns sacrifices in person interpersonal engagement which plays a

part in knowledge sharing

How to organise collaboration and cooperation –is there a leader/driver? At what level? For example Start-

ups collaborating with advanced stage companies – consider what would be factored in to the

collaboration

Incentivising of linkages led by regional bodies e.g. EU

Collaborations and spillovers

Bottom up approach - letting know about necessities and knowledge flows between the countries

Top down approach - through policies that encourage collaborations

➢ How can latecomers take advantages over the established industrial powers?

➢ What are the channels for technology diffusion at regional level?

- Trough social and cognitive proximity in Europe

- Trough a top-down approach in regions with larger territories like China