Social Capability For Industrialization And “Innovative Combination”

Social Capability For Industrialization And

“Innovative Combination”

TRIHADI PUDIAWAN [email protected]

© October 2011

Pendahuluan

Pendahuluan

TECHNOLOGY & SOCIALLY ADVANCED

SOCIAL CAPABILITY

DEVELOPMENT

CATCH-UP HYPOTHESIS

SOCIAL CAPABILITY FOR INDUSTRIALIZATION

Pendahuluan

CATCH-UP HYPOTHESIS

Technological backwardness is not

usually a mere accident.

A country's potential for rapid growth is strong not when it is

backward without qualification, butrather when it is technologically

backward but socially advanced.

ABRAMOVITZ, 1986

SOCIALLY ADVANCEDTECHNOLOGY

PendahuluanSOCIAL CAPABILITY

People‘s basic social attitudes and political

institutions

A set of economic characteristics

of people and institutions that bear more directly on the ability to exploit

modern technology


Social Capability for Industrializati

on

Social Capability for Industrialization

TECHNOLOGY

SOCIAL CAPABILITY

INDUSTRIALIZATION

Minami (1994)

Watanabe (1995)

Vogel (1991)

Level Actors Index of Capability(institutional organization)

Government Economic Technocrats

•Organizational ability to formulate and implement policies

•Infomation sharing system•Independence from politics (no rent-seeking activity)

Enterprise Entrepreneurs

•Display of individual entrepreneurship

•Innovative combination of managerial resources

•Upgrading of corporate organization

WorkplaceEngineers,

Technicians, Skilled Workers

•Individual capacity for learning

•Organizational capacity for technology formation

•Social capacity for technology formation (accumulation of traditional techniques and educational system)

Social Capability for IndustrializationSuehiro

(2007)SOCIAL CAPABILITY

FOR INDUSTRIALIZATION

Capability at The Three Level

Capability in Government, Enterprises, and Workplaces

Government

Economics Technocrats

Organizational ability to formulate and implement policies

Information sharing system

Independence from politics


WorkplaceEngineers, Technicians,

Skilled Workers

Individual capacity for learning

Organizational capacity for technology formation

Social capacity for technology formation


Enterprise Entrepreneur

Upgrading of corporate organization

Combination of managerial resources

Display of individual entrepreneurship

Creative Response & Innovative Combination

Entrepreneurial SpiritSOCIAL CAPABILITY

Government Enterprise Workplace

Economics Technocrats Entrepreneur Skilled Workers

NEW COMBINATION


Entrepreneurial Spirit

POLICY

OUTPUTA NEW STAGE IN DEVELOPMENT

Creative ResponseENTREPRENEURIAL SPIRIT

The ability of those with responsibility for corporate management to make decisions leading to innovative

corporate activity that will creatively destroy existing socio-economic structures and bring about a new stage in

development.(Yonekura Seiichiro 1986)

CREATIVE DISTRUCTION

Joseph A. Schumpeter

CREATIVE RESPONSE

Creative Response

CREATIVE RESPONSE

DISCONTINUOUS INNOVATION

NEW COMBINATION

OUTPUT

A NEW STAGE IN DEVELOPMENT

EXISTING DEVELOPMENT

Creative ResponseJoseph A. Schumpeter

OUTPUT

1. The introduction of new goods2. The introduction of new method of producing

3. The opening of a new market4. The conquest of a new source of supply of raw

materials or half-manufactured goods5. The creation of monopoly position or the breaking up

of a monopoly position

NEW COMBINATION

Creative ResponseJoseph A. Schumpeter

CREATIVE RESPONSE

CRITICS

THEORIES OF STAGED DEVELOPMENT

(Abernathy & Clark 1985; Abe Etsuo 1995)

OUTPUT

NEW COMBINATION

Creative Response

AREA II

Niche Creation<Marketers>

Cases: Walkman by Sony Corp.

AREA IV

Revolutionary Innovation<Technologist>

Cases: Automatic Transmition in Automobiles

AREA III

Regular/Incremental Innovation<Managerial

Administration>

Cases: Sloan reforms in GM

AREA I

Architectural Innovation<Entreprenurial Manager>

Cases: Model T by Ford Co. S

Creative Distruction Of Obsolete

Production Structure

Conserve/EntrenchExisting Production Structure

Disrupt Existing/Create New

Market Linkage

Conserve/EntrenchExisting Linkage

Creative Response

CREATIVE RESPONSE

DISCONTINUOUS INNOVATION

NEW COMBINATION

OUTPUT

A NEW STAGE IN DEVELOPMENT

EXISTING DEVELOPMENT

INNOVATIVE COMBINATION

CONTINUOUS INNOVATION

Innovative Combination


Entreprunerial spirit that seeks new synergies between existing management resources. (Suehiro 1995)

Entreprunerial spirit that skillfully combining imported technologies with the existing advantage of low-cost,

well-educated labor force, and a number of other disparate management strenght to aquire, or create,

new international competitiveness.

Innovative CombinationSOCIAL CAPABILITY

Government Enterprise Workplace

Economics Technocrats Entrepreneur Skilled Workers



Entrepreneurial Spirit

POLICY

OUTPUTA NEW STAGE IN DEVELOPMENT

INNOVATION

Innovative CombinationINNVOVATION

Rubenstein 1989The process whereby new and improved product, process, materials, and

services are developed and transfered to a plant and/or market where they are

appropriate.


Seybold 2006Invention implemented and taken to the

market.


Swann 2009Invention are the culmination of research activities and are ideas

scetches or model for a new product or process, that may often be patened. But invention stops short of commercial use or exploitation. It is when the new

idea is used in the market than we have innovation. Innovation is the commercial use of invention.


MICHAEL PORTER" Competitiveness of a nation depends on the

capacity of its industry to innovate and improve. Companies get advantages if they can innovate"

It often involves ideas that are not “new” but have never been vigorously

persuade.

“Innovative Combination” by Entrepreneur in East Asia

AGRO-INDUSTRY & FOODConsisting of five divisions (Seed, Animal Feed, Livestock

Production, Further Processing and Trading), our horizontally and vertically integrated agribusiness enables us to create value by

supplying needs anywhere across the world.(http://www.cpthailand.com)

“Innovative Combination” by Entrepreneur in East Asia

CP

GROUP

Entrepreneur as orgenizer

New technology 1 Production of grand parent, parent stock

Western Multinationals

Joint ventures

New technology 2 Individual-Quick-Freeze

(IQF), marketing

Japan Specialist & General Trading

CompanyJoint

ventures

Chicken FarmingOrganizing Farmers

Thai Farmers

Finance by Local Commercial Banks

Government Promotion Policies

Manufacturing & import of feeds

Breeding of commercial chicks

Production of vitamins and vaccine

Slaughtering of broiler chicken

Manufacturing & processing of foods

Domestic sales, export

Vertical Integration within the CP Group

Social Capability For Industrialization And “Innovative Combination”

Documents

Transcript of Social Capability For Industrialization And “Innovative Combination”