Attention to diffusing IT as a generic technology is more recent. In japan the government has promoted IT use among SMEs the key industries. Compared with those in other industrial countries, Japan’s program were comprehensive and continous. They involved partnership of the central and local government and business, which shared the cost of training, consultants, information services, R&D and demonstration projects. The program addressed market and capability failures in IT adoption and diffusion, particularly for SMEs. Incentives and support addressed the finance, marketing, information, managerial skill, learning costs, and risks recquired to adopt the new tecnology paradigm. They included technology extention institutions testing labs and standarts, technopolis schemes, MITI’s technology diffusion groups, government sponsored robot leasing companies.

Other NICs have used IT to promote productivity and flexibility. Extension programs focused on users as garment (Singapore and Hongkong) and woodworking (Taiwan) where technological and market changes eroded international competitiveness. The national productivity centers of Korea, Taiwan and Hongkong following Japan’s model., helped SMEs gone farthest in diffusion and become the most IT intensive economy of the group. Led by its Nation Computer Board, the government has invested in IT to provide demonstration effect. Set standart make public private transactions and help SMEs access public information.

These government increasingly recognize the potential of IT and concequent improvement in business practises. Some, like Singapore and Hongkong view IT as an enabling technology for service the fastest growing sector of their economies. Large firms can take advantage of advanced manufacturing technology on their own, in Japan and Korea IT diffusion businesses occurs mainly within conglomerate. Government programs therefore are increasingly focused on SMEs.

Little field research has captured the lessons of these diffusion programs, studies are needed. It does appear, however, thet program succeed only government and business are genuine partner during design and implementation. Government coordinates and subsidizes. The private sector provides some funding, delivery channel, and knowledge of market failures, learning requirement and user preference.



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