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Purpose – This chapter analyzes the effects that the international integration of product markets induced by globalization exerts on the direction of technological change at the industry level.

Methodology/approach – In order to do so it elaborates an interpretative framework that complements the classical inducement hypotheses with the Schumpeterian literature and the localized technological change approach, putting forward the hypothesis that technological change is biased by the dynamics of both factor and product markets. We argue and show that not only the changing levels of input costs but also the changing prevalence of product and process innovations affect the direction of technological change: specifically when product innovations prevail technological change is skill-biased, while when process innovations play a major role innovation is capital intensive.

Findings – Following this perspective we analyze the interindustrial variance of the output elasticities of labor of the main advanced economies in recent years and claim that such heterogeneity can be understood as the result of differentiated innovative reactions of firms to changes induced by the globalization of the markets: fast-growing sectors innovate mainly through (skilled) labor-augmenting technological change, while mature industries rely more on capital-enhancing innovations. The empirical evidence supports our hypotheses and shows that the variance of the output elasticity of labor in a panel data estimate across 17 manufacturing sectors in 16 OECD countries from 1995 to 2006, is significantly and positively associated with the rates of growth of employment, wage levels and their rates of increase, and R&D intensity.

Originality/value of paper – By investigating the variance of output elasticities at the industry level the chapter provides new insights within the literature focused on the bias of technological change.

Because of importance of technological learning for less developed countries, the notion has received increasing attention of scholars. The purpose of this paper is to investigate technological learning systematically by assessing the effect of technology transfer actors on technological learning in less developed countries context.

The paper presents assessment model by adopting technological learning concept based on technology absorption and incremental innovation at firm level and identifying key roles of technology transfer actors (State – Scientific and technological infrastructure – Industry) that affect technological learning. The paper follows survey as research methodology. Thus, a questionnaire was addressed to 33 Syrian textile factories to examine the assessment model. Simple linear, multiple linear and ordinal regression analyses are preformed to examine relationships of model components.

The regression models show notable ability of technology transfer actors to explain technological behavior of firms to accumulate operative capability and consequently to generate passive incremental innovation. The findings indicate passive technical change system of Syrian textile industry. Therefore, goal-oriented evaluation of actual technology policy is preliminary step for achieving improvements, as well as activating scientific and technological infrastructure role by enabling strong relationships with industry and supporting interactions of domestic firms of textile industry and with foreign players.

The paper enriches technological learning literature by proposing systematic approach that sets the nature of technical change process of less developed countries in core of analysis. Moreover, it provides a guide for technological learning practices at firm level and for policymakers based on assessing actual status of Syrian textile industry.

The purpose of this paper is to analyse aspects of technological change in rice agriculture, related to adoption of the Green Revolution (GR) in Indonesia. Rice production is selected in this study because it plays an important role in the development of Indonesian economy. Particular attention is paid to the use of agrochemicals that has potentials of contaminating the environment.

The paper uses an econometric model to investigate the impact of different technologies and policies related to rice production. Production function technology that enables non-neutrality of input use is the underlying concept of this paper. Types of land and transformation in policies related to rice production were accounted for to determine biased technological change. National-wide data were compiled from the Indonesian Bureau of Statistics.

The results show that rice agriculture underwent technological progress with biased technological change. The technological change was capital- and labour-saving, and agrochemical-augmenting. Production system in wetland led to technological change less capital- and labour-intensive, whilst the GR led to technological change more labour-saving and more agrochemical-augmenting.

This study only pays attention to environmentally detrimental inputs as a cause of externalities. This is a not full representation of real environmental consequences. In some studies on environmental degradation associated with intensive agricultural practices, however, there are other factors that can degrade the environment, such as soil erosion and soil compaction resulting from certain agricultural practices, and deforestation resulting from agricultural expansion. These are also important environmental impacts. The author expects that these factors are interesting and challenging subjects to be modelled in future research on sustainability of agricultural productivity growth, both theoretically and empirically.

Increase in use of agrochemicals was strongly GR linked. Moving from the GR towards more environmentally friendly policy was a wise step to reach sustainable rice production. After the GR, an act that removed pesticide subsidies and disseminated environmentally friendly technology, called integrated pest management was able to reduce the intensity of agrochemical use in rice agriculture. Further actions to support environmentally friendly policy could be the use of bio-agents such as bio-fertilisers and bio-pesticides. Enhancing farmers’ knowledge on the environmental issues and engaging farmers as a part of agro-ecosystem would synergise the actions.

This study uses the concept of biased technological change, estimated econometrically using national-level data. The production function used in this analysis enables non-neutrality of agrochemical use. When the result significantly shows the agrochemical-augmenting technological change, it is a convincing evidence, not just by accident, that the GR really led to environmental problem.

Technological innovations can have Important strategic implications for individual companies and can greatly influence industries as a whole. Yet, not all technological change is strategically beneficial. This article focuses on ways to recognize and exploit the competitive significance of change.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

The intense competitive and dynamic environment in mobile social-media market forces service providers to introduce incremental technological changes to achieve sustainable competitive advantage. The purpose of this paper is to investigate what and how the user attitude to change influences members' behavioral support for incremental technological change in mobile social media service.

Using the tripartite model of attitude, this study examines the influence of the cognitive aspect (empowerment with change), affective aspect (arousal with change) and behavioral aspect (habit to change) of attitude toward change on members' behavioral support for incremental technological change. Drawing on the commitment to change theory, we assessed the underlying mechanism by which attitudes toward change influences behavioral support for incremental technological change through the two components of commitment to change (i.e. affective and normative commitment to change). We tested the model using structural equation modeling on the data collected from the popular mobile social media services in China.

Our results indicate that the effect of empowerment with change, arousal with change and habit to change varies with different dimensions of commitment to change and significant influence of commitment to change on members' behavioral support for incremental technological change.

The findings of this study contribute to better insights for services providers for implementing incremental technological change strategies.

This study contributes to the theory of incremental technological changes by empirical examination of the impacts of users' attitudes toward change on members' behavioral support for incremental technological change in mobile social media. The paper extends the commitment to change theory with the discussion of the mediating effect of commitment to change in the continuing members' behavioral support for incremental technological change in mobile social media.

Purpose – This chapter aims at exploring the effects of globalization on technological change by focusing on the determinants of the direction of technological change at the firm level of analysis by following the induced technological change approach implemented by the localized technological change hypothesis.

Methodology/approach – In the empirical analysis, we proxy the direction of technological change by means of the changes in the output elasticity of capital and analyze how it is affected by the changes in factor market costs and firms' attributes for a panel of 1,113 companies listed on UK and the main continental Europe financial markets for the period 1995–2003.

Findings – We find that small firms are more likely to introduce capital-intensive technological changes while large firms will introduce skill-intensive technological changes.

Research limitations/implications – Our model provides a clear analytical framework that interprets the growing skill intensity of the advanced economies as the result of the introduction of new technologies induced by the growing globalization and biased by the characteristics and the types of innovation strategies of the firms.

Originality/value of paper – In so doing, the chapter adds to the existing literature in that it first explores the effects of globalization upon factor markets and, second, it investigates the effects of the direction of technological change within a microeconomic perspective.

Based on a comparative case study of nine firms in the Canadian graphic arts industry in 1964–86, this paper suggests that managerial conduct plays a significant role in technological change. There were clear differences in managerial conduct between technological leaders and followers, and managerial conduct was influenced by firm performance, managerial capacities and attitudes and contextual conditions. These four elements, managerial conduct, firm performance, managerial capacities and attitudes, and contextual conditions, constituted feedback cycles of technological change. Firm performance induced managerial conduct that was influenced by managerial capacities and attitudes and by contextual conditions and led to technological change, depending on the intensity and extent of conduct, and technological change further affected firm performance. The paper focuses on managerial work processes as they cause differences in technological change in technological leaders and followers, but other elements of the feedback cycles are considered as well. Technological change has increased productivity growth and standard of living, but technological development also “destroys the economic viability of certain industries, firms, and jobs, as it creates new ones” (Nelson, 1981: 1054). This kind of impact has created a need to predict and control technological change, and thereby to understand the phenomenon better. Despite the fact that technological change takes place in firms (Moss, 1981: 51–53), most of the economics research explains technological development at the aggregate level (see Kamien & Schwartz, 1982 for a review), and the majority of the so called innovation studies concentrate on individual adoption behaviour (see Rogers, 1983 for a review). However, in order to understand the process of technological change, we must go inside the firms where the change takes place. A useful starting point seems to be a comparison between firms that are technological leaders and followers (Schumpeter, 1934; Porter, 1983). This would increase understanding of the factors facilitating and preventing technological change. Technology can be defined as the tangible production process of converting inputs to outputs (Shen, 1981), and it is often embodied in physical capital (Nelson, 1981). Changes in production processes via production equipment are the main concern here. The central question of this paper is: Why do some firms become technological leaders while others are followers? And more specifically: How does managerial conduct differ between technological leaders and followers? The answers were sought through a comparative case study of Canadian graphic arts firms. The results indicate that the crucial factor determining leadership and followership was managerial conduct, shaped by firm performance and by the context of the firm. The role of managerial conduct in technological leadership and followership is focused on in this report.

This paper seeks to contribute to the literature about the resistance to industry technological change in old technology‐based communities of practice.

The paper reports an explanatory case study in order to achieve this purpose: the resistance to technological change of “hams”, the worldwide community of radio amateurs. The case study integrates primary and secondary data and information.

Change agents are critical actors in order to support the adoption of new technology into the community (but not the substitution of the old technology). These actors, in fact, work on the social and learning conditions affecting the process of diffusion of innovation within the “resisting” community.

The paper sheds light on the ambivalent responses to industry technological change in social systems by applying a specific multi‐level theoretical model of analysis about the limits to the diffusion of innovation within social systems.

The purpose of this paper is to explore how enhanced and new technological knowledge of firms affects their performance under varying rates of technological change.

A large‐sample empirical study of US manufacturing firms is used. The main independent variables are measured using firms' patent data. Three hypotheses were developed based on theory and were tested using multivariate regressions. To increase reliability, alternative industry and firm explanators of performance were controlled for.

It was found that performance effects of enhanced technological knowledge increase with increasing rate of technological change. Effects of each knowledge dimension are found to be non‐linear. New technological knowledge has no independent effect on performance but acts jointly with enhanced knowledge in improving performance under moderate to rapid rates of technological change.

The study is narrow in scope being a fine‐grained analysis of a firm's technological competence. It does not take into account the role of marketing and administrative competence.

This is one of the few studies to disaggregate a firm's total stock of technological knowledge into its enhanced and new components.