Gearing National S&T Capability for Global Competitiveness in the 21st Century: Theoretical and Empirical Considerations

Abstract

Although many explanations have been offered about why some nations, but not others, are able to industrialize and attain rapid and sustained economic growth, the role of the development of technological capability appears to be the most compelling. This paper initially presents some historical and theoretical arguments about the vital role of the adoption of new technologies in the industrialization and economic success of the rich nations of the world. It then examines the empirical relationship between (1) economic success, measured by per capita GNP of nations, and (2) technological capability, measured by: (a) size of R&D manpower, and (b) level of expenditure on R&D activities. Results of the analysis of both worldwide (70 nations, World Bank and UNESCO) and time series (Japan, South Korea, and Taiwan) data support the contention that indeed economic success is a function of technological capability. On the basis of consistent historical, theoretical, and empirical evidence, it is proposed that the Philippines, or any country for that matter, may only attain global competitiveness in the 21st century by adequately improving its national technological capability. This can be done by increasing the number and quality of R&D personnel and spending a bigger proportion of GNP on R&D activities.