The dynamic of technological accumulation at the microeconomic level : lessons from Indonesia -- a case study

Abstract

This is a paper on technological capability building at the microeconomic level-the firm as the unit of analysis. The research strategies selected to conduct the study were a case study combined with a retrospective study. The case study was PT Texmaco Perkasa Engineering (TPE) of the Texmaco Group Indonesia. It is shown in the paper that technological accumulation at TPE is incremental and dynamic. It tends to move along trajectories in which past learning contributes to particular directions of technical change and experience reinforces the existing stock of knowledge and expertise. The accumulation of technological capability at TPE did not come merely from experience, though experience is important. It came from conscious efforts-to monitor what was being done, to try new things, to keep track of developments throughout the world, to accumulate added skills, and to increase the ability to respond to new pressures and opportunities.