Authors: Nwoye F. Chukwunonso
Addresses: Akanu Ibiam Federal Polytechnic Unwana, Afikpo Ebonyi State, Nigeria
Abstract: Technology has been identified as being crucial to sustainable economic growth and development. Its advancement varies amongst countries and even within them depending on certain influential variables. These variables were identified and categorised using factor analysis. The impact of each of the variables on technological advancement of developing economies were quantified using weighting scheme from factor analysis and aggregated into a composite - technological capability by linear and geometric aggregation techniques. The categories identified and their overall contributions to the composite include: exposure to new/foreign technology - 25.87%, technology transfer mechanism - 11.68%, macroeconomic environment - 16.91% and incentives - 17.02%. The analysis showed that the impact of weight on scores of the composite was minimal, while variations in scores computed using linear aggregation technique were also reflected in those computed by geometric aggregation even though more sensitive. The impact of weighting and aggregation technique on technological capability rankings of economies based on computed composite was verified using sensitivity analysis.
Keywords: technology advancement; developing economies; policy; foreign technology; technology transfer mechanism; macroeconomics; factor analysis; FA.
International Journal of Business Continuity and Risk Management, 2018 Vol.8 No.4, pp.281 - 302
Received: 17 Oct 2017
Accepted: 25 Apr 2018
Published online: 28 Aug 2018 *