Technological Dimension of Industrial Development

Key Phases and Stages an Project/Plant or Enterprise Development

1. Concept
Development:
Idea and opportunity
identification

Project/Plant/Enterprise
2. Erection and
Implementation
• Machinery and equipment
selection, purchase and
installation
• Plant start up
Cont…

Project/Plant/Enterprise
Operation:
3. • Organizing and mobilizing
resources and materials for
production

Plant/Project/Enterprise Improvement and

Upgradation –
through implementing expansion, or
4. modernization or balancing programs.

(i) Machinery, equipt etc selection and

acquisition to improve and upgrade the plant
or project or enterprise
(ii) Organizing and mobilizing resources and
materials for upscaling production; improved
products and services
Cont…
S/N Stages/Phases Activities and Institutions Skills/Expertise

Services
1. Scanning the
Concept market, observing,
Development:
analyzing relevant
(identifying ideas,
opportunities, development trends
challenges etc).

2. Searching to identify Technical Technical,

technologies and
engineeri engineering,
suppliers;
Project (Plant) Analysis and evaluation ng and management
Erection/Implem of technologies and managem etc. skills,
entation - suppliers;
ent expertise,
Equipment and Negotiating and
machinery bargaining with suppliers
consultin project
selection, for prices of g firms. development
purchase, technologies; skills;
installation etc Carrying out pre-
expertise.
feasibility studies;
Cont…
S/N Stages/Phases Activities and Institutions Skills and
Services Expertise

3. Plant or Project (a) Production Technical Technical,

Operation: operation engineering engineering
Production and management
(i)Utilization of
technical engineering management etc skills or
installations and Quality control consulting expertise etc.
processes
Trouble shooting firms Production
(ii)Production of
value – goods and Repair and management
services maintenance skills.
  Production
(b) Material and input engineering
surveys skills.
Market demand Innovation
Plant or Project
Improvement: surveys related skills.

4. (i)Upgradation of Searching to Technical Technical,

technical installations
identify engineering Engineering,
and processes
(technical change) and
The Technology Gap in Industrialization Process

Resource base and

Co ordination issues Financial and related matters

• Raw material Investment Resources

 Linkages with other Issues of technology falling - Initial Capital Outlay to establish the plant
sectors etc through this gap - Medium Term financial plans and
• Infrastructure – 1. What technology to buy resources to operate the plant( materials,
economic, physical, from which source and what insurance , staff costs , etc).
water etc. Prices during plant erection: - annual financial resources/budgets
• Trade and markets - machinery, equipment etc to operate and sustain the plant etc.
• Energy and related - Civil construction works
utilities - Architectural and elevation
designs etc
2. How to operate and upgrade the
technical systems installed in the
post
3. What skills, expertise and
institutions to build and engage in
phase 1 and 2 as above
Technical and Engineering Structure for Production,
marketing and sales operations within an Enterprise

Sales
Structure :
customer and buyers
actually buying
products and services.

Promotion and marketing structure:

(identifying and promoting markets for
the sale of products and services )

Production Structure:
organizing and mobilizing raw and
other materials. Administration,
management and financial systems
etc for production

Technical
Technicaland
andEngineering
Engineering
Structure Structure:
(Machinery, Equipment
Parts plusEquipment,
(Machinery, skills, trouble shooting,
Parts plus skills,
knowledge expertise;
quality andetc.
control trouble
Important Learning Points (Insights)

1. Technology bears on industrial Development - there is a substantial

technological dimension involved in the industrial development process just as in other
sectors in society.

2. In the process of industrial development technology bears at

various stages – project implementation, operation and subsequent improvement
stage

3. Deliberate action to take care of the technological aspects –

countries have to be offensive and active on this.

4. Failure to deal with the technological aspects of industrialization

leads to serious and disastrous implications
IMPORTANT QUESTIONS
1. Why is it the case that technological aspects
are almost always ignored in matters of
industrial policy, planning and analysis?

2. What should be done to ensure that the

technological dimension is handled properly
in the context of industrial development in
poor economies such as Tanzania