Of rickshaws and technology

Din and honking murk the streets of Delhi. As the slender rickshaw driver struggled to push us through the mayhem, we heard a cellular phone ringing. It was the distinct Nokia tone. The rickshaw came to a sudden halt. The driver stood up balancing himself on the pedals, as he burrowed into the deep pockets of his trousers. Finally, he managed to get out a tiny phone (tiny is a synonym of sophistication). "How strange," I said to myself, "his phone is smaller than mine. It must cost more than the rickshaw itself."

A number of further thoughts crossed my mind. Perhaps neither the phone nor the rickshaw belonged to the driver. In the heart of mystic India too time has become money. Even in the rickshaw business it must be important to be in when out. Still, for me the rickshaw and the cellular remain worlds apart.

Modern technology has become so sophisticated that it is relatively easy for anyone, anywhere to consume it. Technology made simple, although many of us rarely go beyond using the most basic features of modern gadgets. The spread of technology, in itself, is a good thing. Familiarity tends to lower the barriers to technology and opens more opportunities for its consumption.

Since the early days of civilisation, technology diffusion has been a necessary condition for advancement and social progress. Today, it has become the single most important force driving globalisation. Technology obsolescence is designed so as to recreate product life cycles and to keep demand alive. Take the story of the camera which was fast giving way to camcorders and similar devices. Then the digital camera was invented, with the capability to capture sound and moving video as well as still photographs. And the market for digital cameras is still booming. However, it is grossly misleading to present, as some commentators do, technology consumption by itself as a sign of economic development.

There exists a significant gap between being able to consume technology and being able to produce it. This is particularly more so in the context of a small island economy, such as Malta's. Moving on to higher value-added activities requires building upon our existing technological and skills base. It will be tragic to consistently seek new pastures at the expense of neglecting that which we have achieved. To date, despite various attempts, no comprehensive national technological audit has been undertaken. This is essential for the formulation of our economic and human resource strategies.

Much of the more advanced technology available in Malta has been imported through international enterprises operating in our country. Many of them are networked to technology centres overseas, which enables them to compete on the global market. If these enterprises go, so will a large part of the technology they have brought with them. Admittedly, there has been an element of spillover but the umbilical cord to the source and commercial of this technology will be lost.

Existing "pockets" of indigenous technology have not been sufficiently cultivated and, except perhaps for a handful of instances, its business potential has not been exploited. Given local conditions, critical mass needs to be created through increased focus and networking, encouraging the development of clusters, and bringing together local and foreign investment. Competitiveness no longer belongs to stand-alone single units but to networked enterprises that help create a "milieu" which encourages common behavioral practices and promotes a "technological" culture. Learning is crucial. Firms in the right "milieu" learn faster and reap important externalities. They find it easier to move along the technology process from importation and absorption to adaptation to innovation.

This process is undoubtedly facilitated by the existence of a supporting raft created by specialised local agencies and institutions. It is relevant not only to the manufacturing industry but to all economic activities. Technology is the driver of knowledge. Education and training remain of vital importance and need to dovetail with this technological drive. Such an environment will enable Malta to start attracting direct foreign investment to Malta. Investments will not flow in just because Malta is a member of the EU or because we are members of the eurozone.

We need to move beyond using the Lisbon Agenda as just a benchmarking exercise. Unfortunately, results confirm our limitations and failure in this sphere as we continue to lose pace vis-à-vis other EU countries. We need to stop the rethoric and ensure that Malta shares in the evolution of "the most dynamic and competitive knowledge-based economy in the world".

The EU itself is proposing to reinforce the education-research-innovation triangle through such initiatives as the establishment and operation of the European Institute for Innovation and Technology (EIT), which is expected to become operational in 2009, and the Joint Technology Initiatives (JTI). Under the new cohesion policy programmes, more than €85 billion will be made available for investments in knowledge and innovation. It is important that Malta partakes selectively in such initiatives if we are to progress economically.

This requires that we have a clear understanding of the role of technology in promoting the economic development of our country and a well-defined strategy that sends the right signals to all stakeholders. By the end of 2008, Malta as the other EU member states, will have to present a national strategy identifying the new generation of world-class research facilities in which it will be participating. We need to revamp the Malta Council for Science and Technology so as to ensure that it fulfils its mission.

Only then can we start talking about centres of excellence; inducing capital to seek other venues besides real estate. We need to make EU membership work for us. We need change and a commitment to seek a new beginning.

Fms18@onvol.net