Abstract:
Poor performance in manufacturing in Pakistan is due to technological obsolescence, low
level of technological capabilities and poor technology climate. Development of such
capabilities will not occur if left to market forces alone and will only be possible through
the formulation and implementation of an up-gradation strategy based on strategic
framework. This research, therefore establishes the need for such a strategy based on
framework for up-gradation of industrial technology in Pakistan. Such strategy also stresses
the need for Pakistan’s economy to also include within it important structural changes
which other developing countries and newly industrialized countries have already
embraced. In this regard the research highlights the need for Pakistan’s industrial sector to
focus more on Medium, High Tech and R&D based manufactures.
This research has also identified the targeted sectors using porter’s diamond
analysis tool. The targeted sectors include; Low Technology (Ceramics), medium
Technology Engineering (Automobile) and high Technology (Electronics) industries.
Identification and critical analysis of various technological capabilities and
supportive technology climate based on the targeted sectors, universities and R & D
institutions in Pakistan has been carried out.
Strategic framework based on three perspectives, each with three elements,
representing technological capabilities and supportive technology climate has been
established in this research. The framework includes;
Indigenous Technology Development Perspective
Elements 1: General technology status / competence level capability of targeted
sector/industry.
Element 2: Linkage (Collaboration) Capability among the various technology using,
creating Sand governing institutions.
Element 3: Research/Innovative Capability (Technology creating capability) such
as universities and R&D Institutions.
Import of Foreign Technology Perspective
Element 4: Technology Acquisition Capability
xivElement 5: Technology Assimilations Capability
Element 6: Technology Improvement Capability
Supportive Technology Climate Perspective
Element 7: Supportive Organizational Environment
Element 8: Supportive Management Style
Element 9: Supportive Government Role.
Further research explores the need for Pakistan to develop all such capabilities.
Empirical evidence on general technological status/ competence level, research/innovative
capability, linkages capability and similarly on acquisition, assimilation and improvement
capabilities indicators substantiated the claim that Pakistan has not yet developed these
advance capabilities. In order to facilitate the capabilities building process, it is imperative
for Pakistan to have in place an intelligent strategic framework followed by supportive
technology institutional framework based on the strategy formulated in this research.
The need for a supportive (fostering) technology climate to act as an enabling
environment for the entire exercise in this research is also stressed. Whereas the empirical
evidence indicates that the organizational environment in industries, universities and R&D
institutions is highly individualistic, less ethical, hostile and run on corrupt practices.
Similarly the management style is highly centralized, unparticipative, personalized and
does not govern on established procedures. The evidence further explore that the
government role is extremely unsupportive, dictatorial, obstructionist and does not play
guiding and leading role for intelligent policy formulation and implementation.
Based on the need establishment and strategic framework, recommendations and
strategic directions for up-gradation of all capabilities along with supportive technology
climate identified in the framework have been made in this research. Moreover, some
macro-political, economic and cultural factors with special reference to developing
countries and it implication for Pakistan has also been identified and deliberated, which
influence this entire technology up-gradation exercise.
The benefit of the up-gradation strategy based on strategic framework are
established through a case study of an existing automotive vendor industry in Lahore,
Pakistan, anticipating focused and sustained approach compared to string of random and
undirected intervention for technology up-gradation in the past.