MANAGEMENT STRATEGY TO DEVELOP NATIONAL TECHNOLOGY CAPABILITY

The objective of this paper was to use only three variables to develop a quantitative model to determine and benchmark the level of national technology capability (NTC) internationally. This paper achieved its objectives by developing and applying the new NTC model to determine and compare the following three aspects, between 33 OECD member and non-member countries presented in this paper: the level of efficiency in the national system of knowledge production; the level of efficiency in technology development; and the level of national technology capability. This paper also verified the relevance of the NTC as an analytical tool to determine and benchmark the levels of NTC internationally by determining the relationship between the size of national economies (gross domestic product) and their levels of technology capability (percentage). The purpose of this test was not to establish a causal relationship between the level of NTC and the size of the economy. The results suggest a very strong and statistically significant relationship between the levels of technology capability and the size of the national economies. These results indicate that countries such as Japan and Germany, which have attained the highest levels on NTC, are also enjoying the highest levels of economic prosperity (GDP).

Another aspect observed from these results is that countries such as Netherlands, Italy, Chinese Taipei, Korea and France, which have about the same or smaller populations as South Africa, have achieved greater levels of technology capability compared to South Africa. These countries have also achieved greater economic prosperity compared to South Africa in 2005. On the other hand, the results suggested that countries that have low levels of technology capability tend to have small economies. These results also presented a unique set of countries such as Russia, Mexico and Spain, which have relatively large economies but have low levels of technology capability. The findings presented in the existing body of literature validated the results presented in this paper. Although this paper focused on 33 countries whose data is available in the public domain, the methodology introduced in this paper can be applied at different institutional levels within a country or between different countries. For example, the NTC can be applied to determine and compare levels of technology capability between different research institutions, universities and companies within a country or between different countries. Governments, research institutions, universities and companies within a country or between different countries can also apply the NTC model to develop strategic national or international partnerships for mutual benefit.