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new world systems data on technological dependence
by Tausch, Arno
21 August 2001 14:55 UTC
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Dear colleagues,


years ago colleagues from the Zurich department of sociology headed by
Volker Bornschier provided excellent analyses on the issue of patent
penetration and technological dependence. Now, the UNDP HDR 2001

http://www.undp.org/hdr2001/

http://www.undp.org/hdr2001/indicator/

present a new data series that provides you with a link-up to that
well-known theme, so important for the distinguishing between the center,
the semi-periphery and the periphery.

The TAI-Index of the UNDP combines technology creation, diffusion of recent
innovations, diffusion of old innovations and human skills, and reaches from
0 (low value) to 1 (best value). It is based on the combination of a
technology creation index (patents granted to residents per 1 million people
and $ receipts of royalties and license fees received per 1.000 people); a
diffusion of recent innovation index (internet hosts per total population;
high and medium technology exports as % of total exports), a diffusion of
old innovation index (log mainline and cellular telephones per 1.000
population; log energy consumption per capita) and a human skills index
(mean years of schooling of the population age 15 +, gross tertiary science
enrolment ratio in % of the age group). The indicator index is equal to
[(actual value - observed minimum value)/(observed maximum value - observed
minimum value)] for each component of the indicator.


The world scale of technological achievement is:

        TAI-Index       world technology achievement rank       
Finland 0,744   1       
United States   0,733   2       
Sweden  0,703   3       
Japan   0,698   4       
Korea, Rep. of  0,666   5       
Netherlands     0,630   6       
United Kingdom  0,606   7       
Canada  0,589   8       
Australia       0,587   9       
Singapore       0,585   10      
Germany 0,583   11      
Norway  0,579   12      
Ireland 0,566   13      
Belgium 0,553   14      
New Zealand     0,548   15      
Austria 0,544   16      
France  0,535   17      
Israel  0,514   18      
Spain   0,481   19      
Italy   0,471   20      
Czech Republic  0,465   21      
Hungary 0,464   22      
Slovenia        0,458   23      
Hong Kong, China (SAR)  0,455   24      
Slovakia        0,447   25      
Greece  0,437   26      
Portugal        0,419   27      
Bulgaria        0,411   28      
Poland  0,407   29      
Malaysia        0,396   30      
Croatia 0,391   31      
Mexico  0,389   32      
Cyprus  0,386   33      
Argentina       0,381   34      
Romania 0,371   35      
Costa Rica      0,358   36      
Chile   0,357   37      
Uruguay 0,343   38      
South Africa    0,340   39      
Thailand        0,337   40      
Trinidad and Tobago     0,328   41      
Panama  0,321   42      
Brazil  0,311   43      
Philippines     0,300   44      
China   0,299   45      
Bolivia 0,277   46      
Colombia        0,274   47      
Peru    0,271   48      
Jamaica 0,261   49      
Iran, Islamic Rep. of   0,260   50      
Tunisia 0,255   51      
Paraguay        0,254   52      
Ecuador 0,253   53      
El Salvador     0,253   54      
Dominican Republic      0,244   55      
Syrian Arab Republic    0,240   56      
Egypt   0,236   57      
Algeria 0,221   58      
Zimbabwe        0,220   59      
Indonesia       0,211   60      
Honduras        0,208   61      
Sri Lanka       0,203   62      
India   0,201   63      
Nicaragua       0,185   64      
Pakistan        0,167   65      
Senegal 0,158   66      
Ghana   0,139   67      
Kenya   0,129   68      
Nepal   0,081   69      
Tanzania, U. Rep. of    0,080   70      
Sudan   0,071   71      
Mozambique      0,066   72      



Research by the Zurich school of sociology already showed that technological
dependence had a negative effect on long-run economic growth and income
redistribution (Bornschier et al. 1980; Bornschier and Heintz, 1978).
Another new data series, presented by the World Bank WDR 1999 , together
with the earlier data, presented by the Zurich school, allow for a
comparison of the evolution of technological dependence on a global scale. 

Today, the European Union (15) controls 25% of the world resident patent
applications, the United States 16%, while Japan and its regional orbits
South Korea and the Philippines control not fewer than 57% of world resident
patent applications.


Europe - in contrast to the USA and Japan - is facing globalization from a
passive perspective - as a prolonged workbench of the TNCs, which invest in
Europe in pretty much the same way as the TNCs did in Latin America during
the time of import substitution - to be present in a market, shielded by an
average level of 7% external customs for industrial products.

Our materials show that Japan is by far the technologically most dominant
country in the world, with over 340.000 resident patent applications per
year, while in the US this figure is over 110.000. South Korea leads Germany
by over 68.000 applications compared to Germany's 56.757. With hardly a
quarter of world resident patent applications, the European Union is in no
position to effectively be a technologically leading center of the world
economy in the 21st Century


Table 2: technological dependence in the world system


        resident patent applications    nonresident patent applications
patent penetration (=2*100/(1+2)) (unweighted coeffi-cient)     % of world
resident patents        % of world non-resident patents 
Japan   340861  60390   15,05   47,4    2,64    
United States   111883  111536  49,92   15,56   4,88    
Korea Republic  68446   45548   39,96   9,52    1,99    
Germany 56757   98338   63,41   7,89    4,3     
UK      25269   104084  80,47   3,51    4,56    
Russian Federation      18138   28149   60,81   2,52    1,23    
France  17090   81418   82,65   2,38    3,56    
China   11698   41016   77,81   1,63    1,8     
Australia       9196    34125   78,77   1,28    1,49    
Italy   8860    71992   89,04   1,23    3,15    
Netherlands     4884    61958   92,69   0,68    2,71    
Ukraine 3640    22862   86,27   0,51    1       
Canada  3316    45938   93,27   0,46    2,01    
Finland 3262    61556   94,97   0,45    2,69    
Switzerland     2699    75576   96,55   0,38    3,31    
Spain   2689    81294   96,8    0,37    3,56    
Brazil  2655    29451   91,73   0,37    1,29    
Austria 2506    75985   96,81   0,35    3,33    
Denmark 2452    72151   96,71   0,34    3,16    
Poland  2414    24902   91,16   0,34    1,09    
Romania 1831    22139   92,36   0,25    0,97    
India   1660    6632    79,98   0,23    0,29    
Norway  1550    25628   94,3    0,22    1,12    
New Zealand     1421    26947   94,99   0,2     1,18    
Israel  1363    12172   89,93   0,19    0,53    
Belgium 1356    59099   97,76   0,19    2,59    
Kazakhstan      1024    20064   95,14   0,14    0,88    
Ireland 925     52407   98,27   0,13    2,29    
Uzbekistan      914     21088   95,85   0,13    0,92    
Hungary 832     24147   96,67   0,12    1,06    
Belarus 701     20347   96,67   0,1     0,89    
Czech R 623     24856   97,55   0,09    1,09    
Egypt   504     706     58,35   0,07    0,03    
Greece  434     52371   99,18   0,06    2,29    
Mexico  389     30305   98,73   0,05    1,33    
Turkey  367     19668   98,17   0,05    0,86    
Bulgaria        318     22235   98,59   0,04    0,97    
Slovenia        301     21868   98,64   0,04    0,96    


Table 2 shows the dramatic decline of the European technological position
over time. The European Union (15) and the EU accession countries were among
the countries with the highest growth rates of technological dependence,
while the Pacific/Indian Ocean area nations Canada, South Korea, India,
Australia and Japan had very slow or even negative growth rates of
technological dependence. They, and not the present or extended European
Union, are the future dynamic pole of the world economy. Although the United
States also lost its former strong position (patent penetration increased
from 27% to nearly 50% over the last 20 years), the European (EU 15)
position is now alarmingly weak. Germany is today's most technologically
independent nation in the Union, with a patent penetration coefficient of
63.41%, followed by the UK (80.47%) and France (82.65%). Germany's resident
patent applications (56.757) were lower than those in South Korea (68.446).
Within 20 years, Germany lost more than 16% of its technological
sovereignty:


Table 3: the increases/decreases of technological dependence over time


                        patent penetration end 1990s
patent penetration 1965-1975    rate of change 1975-end 1990s   
Romania                 92,36                   10,5    81,86   
Czech Republic                  97,55                   23,44   74,11   
Poland                  91,16                   24,58   66,58   
Russian Federation                      60,81                   3,81    57

Greece                  99,18                   42,49   56,69   
Hungary                 96,67                   56,84   39,83   
Bulgaria                        98,59                   60,37   38,22   
Switzerland                     96,55                   72,59   23,96   
Spain                   96,8                    73,94   22,86   
United States                   49,92                   27,38   22,54   
Finland                 94,97                   73,37   21,6    
France                  82,65                   66,01   16,64   
Germany                 63,41                   47,05   16,36   
Austria                 96,81                   84,17   12,64   
Brazil                  91,73                   80,35   11,38   
New Zealand                     94,99                   85,6    9,39    
Italy                   89,04                   79,81   9,23    
Denmark                 96,71                   89,22   7,49    
Netherlands                     92,69                   86,11   6,58    
Belgium                 97,76                   91,33   6,43    
Turkey                  98,17                   91,96   6,21    
Mexico                  98,73                   92,74   5,99    
Norway                  94,3                    89,04   5,26    
UK                      80,47                   76,18   4,29    
Israel                  89,93                   86,63   3,3     
Ireland                 98,27                   97,78   0,49    
Korea Republic                  39,96                   39,75   0,21    
Canada                  93,27                   94,78   -1,51   
India                   79,98                   85,07   -5,09   
Australia                       78,77                   89,11   -10,34  
Japan                   15,05                   28,46   -13,41  
Egypt                   58,35                   95,99   -37,64  
Belarus                 96,67                                   
China                   77,81                                   
Kazakhstan                      95,14                                   
Slovenia                        98,64                                   
Ukraine                 86,27                                   
Uzbekistan                      95,85                                   

Legend: countries printed in bold letters are members of the European Union;
countries printed in bold and indented letters are candidates for European
Union membership

This assessment about an erosion of the European long-term power base in the
world economy also applies to the European share in the world-wide stock of
foreign direct investments and in the share of the top 50 companies of the
world economy. Europe was on the rise until 1990, but has declined since
then:


Table 4 now shows the most important correlations of technological
dependence with social decay on the level of the industrialized and
transformation countries:


Table 4: the correlates of technological dependence


unemployment benefits per Gov expenditures      0,42    
female long-term unemployment   0,37    
agriculture as % of GDP 0,29    
youth unemployment      0,26    
infant mortality        0,26    
female unemployment     0,24    
male long-term unemployment     0,24    
under five mortality rate       0,24    
male unemployment       0,23    
population below $14.40 a day   0,22    
people not expected to survive age 60   0,18    
private consumption as % of GDP 0,18    
CO2 emissions per US $ of GDP   0,11    
inflation rate  0,11    
maternal mortality      0,1     
budget surplus per GDP  -0,1    
real earnings per employee growth rate 1980-92  -0,11   
gross domestic savings  -0,2    
labour force participation ratio        -0,21   
gross domestic investment       -0,23   
services as % of GDP    -0,3    
female net secondary school enrollment ratio    -0,33   
real GDP poorest 20%    -0,39   
terms of trade (1987 = 100)     -0,46   
population served by public sanitation  -0,56   
economic size (GDP in $)        -0,61   
R&D scientists and technicians per 1000 people  -0,61   
public health expenditure (per total pub expenditure)   -0,86   

Legend: our own calculations from UNDP Human Development Report electronic
data file



An enlarged Europe is even more under a motive to reflect on the kind of its
political elites. High subventions, a large state sector, a weak democracy
on a Union level, close links between the agro-multis and the urban business
elites, and a pervasive and growing influence of transnational criminal
corporations of the mafia, n'drangheta etc. type in major European countries
and their systematic and fraudulent misuse of EU subventions would be a 21st
Century type of terra-ferma constellation that could bloc Europe's path
towards the 'Modelski' constellation of global leadership:

an oceanic navy
lead industries, fiscal strength
democratic potential, party system
strong active media


Western Europe lost in terms of world market shares in a secular trend
vis-à-vis the countries of the Pacific; the dynamics of growth in the world
economy seem to work to the detriment of the old European centers. Asia's
'basics' are healthier than expected, and the tide turns to the detriment of
the Europeans, now that the initial positive effects of European Monetary
Union fade away and transnational capital flows again to the Pacific region.
This is also the true background to the present weakness of the 'Euro'.

the EU in the capitalist world system. Relative share in %

EU share in top world collective service companies      74,60   
EU share in world development aid       56,40   
EU share in top world intermediary good companies       55,30   
EU share in top world insurance companies       55,00   
EU share in top world energy companies  50,20   
EU share in OECD total unemployment     47,70   
EU share in top world banking companies 45,90   
EU share in top world automobile industry       41,60   
EU share in top world chemical and pharma companies     40,00   
EU share in top world electrical equipment companies    38,30   
EU share in top world distribution companies    38,10   
EU share in OECD total GDP      36,50   
EU share in top world food industries   34,30   
EU share in OECD population     34,30   
EU share in top world telecom companies 33,70   
EU share in OECD defense expenditure    33,50   
EU share in top world electronical companies    25,70   
EU share in the turnover of the top 45 world companies  21,10   
EU share in top world consumer good companies   17,10   
EU share in top world defense/aeronautic industries     16,80   
EU share in top world mass communication companies      10,10   
EU share in top world informatic companies      0,00    

Legend: Our own calculations from Le Monde, Bilan du Monde, 2000

MR Doz. Dr. Arno Tausch
EUI 13/EUI 12
BMSG Stubenring 1
A-1010 Wien

Tel. 71100-2272
e-mail: arno.tausch@bmsg.gv.at

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