Evaluating Technology Deployment at the State Level : Methods , Results and Insights from the Georgia Manufacturing Extension

Much greater consideration has been given in recent years to the role of technology deployment in promoting business competitiveness and regional economic development (OECD, 1997). This is certainly the case in the United States where, despite evident strengths in developing technological innovations and creating new businesses, there has been increased concern about the performance of existing industries and mature enterprises in effectively applying available technologies and improved business practices. Attention has particularly focused on America’s 380 000 small and medium-sized manufacturers employing fewer than 500 employees. Successive studies have documented that many of these smaller firms find it difficult to introduce modern manufacturing technologies and methods (for example: Office of Technology Assessment, 1990; Rosenfeld, 1992; National Research Council, 1993). Smaller firms frequently lack expertise, time, money and confidence to upgrade their current manufacturing operations, resulting in underinvestment in more productive technologies and missed opportunities to improve product performance, workforce training, quality and waste reduction. At the same time, private consultants, equipment vendors, universities and other assistance sources often overlook or cannot economically serve the particular needs of smaller firms; potential suppliers of information and assistance also face learning costs, may lack expertise or face other barriers in promoting the diffusion of rewarding technologies. System-level factors, such as lack of standardization, regulatory impediments, weaknesses in financial mechanisms and poorly organised interfirm relationships, can also constrain the pace of technological diffusion and investment (Shapira, Roessner and Barke, 1995).