The process of capability development is central to industrialization, but the current literature focuses on the advanced developing countries. This book, based on a World Bank sponsored study of enterprise development in Ghana, is the first to examine in detail how firms in least developed countries in Africa acquire technological capabilities. It analyses why Ghanaian firms are generally relatively uncompetitive, why some firms are better than others, and how the structural adjustment is affecting manufacturing development.

New technologies may be heralded as life-changing innovations or feared as risks to moral values, human health, and environmental safety. Anxieties surrounding technology are often heightened by perceptions that their benefits will accrue to small sections of society while the risks are more widely distributed. Innovation and Its Enemies identifies the tension between the need for innovation and the pressure to maintain continuity, social order and stability as one of today's biggest policy challenges. It looks at a number of historical examples, including coffee, electricity, margarine, farm mechanization, recorded music, transgenic crops and transgenic animals, to show how new technologies emerge, take root and create new institutional ecologies that favor their dominance in the marketplace.

This report addresses a number of issues that have surfaced in the debates over the impact of technological change on employment. These issues include the effects of technological change on levels of employment and unemployment within the economy; on the displacement of workers in specific industries or sectors of the economy; on skill requirements; on the welfare of women, minorities, and labor force entrants in a technologically transformed economy; and on the organization of the firm and the workplace. It concludes that technological change will contribute significantly to growth in employment opportunities and wages, although workers in specific occupations and industries may have to move among jobs and careers. Recommends initiatives and options to assist workers in making such transitions. ISBN 0-309-03744-1 (pbk.).

In this paper we study how aggregate output responds to the arrival of a new General Purpose Technology (GPT) by looking at adjustment mechanisms that operate through labor markets. We show that under a wide set of circumstances the arrival of a new GPT that raises long-run output can trigger a recession in the short-run. Furthermore, we characterize features of the GPT that produce a cyclical adjustment path. An initial recession occurs whenever a higher education level is required to operate the new GPT. But a recession can also occur when the new GPT has lower educational requirements. A cyclical adjustment path is more likely when inexperienced workers are less productive with the new technology and the faster productivity rises with experience in the new sector.

This paper uses a DSGE model to simulate the impact of technological change on labor markets and income distribution. It finds that technological advances offers prospects for stronger productivity and growth, but brings risks of increased income polarization. This calls for inclusive policies tailored to country-specific circumstances and preferences, such as investment in human capital to facilitate retooling of low-skilled workers so that they can partake in the gains of technological change, and redistributive policies (such as differentiated income tax cuts) to help reallocate gains. Policies are also needed to facilitate the process of adjustment.