Analysis of Iran Steel Industry Technology Gap with Selected Countries

Document Type : Sterategic Management

Authors

1 PhD candidate, Department of Management,, Mazandaran University, Babolsar, Iran

2 Department of Management,, Faculty of Economics and Administrative Sciences, Mazandaran University, Babolsar, Iran

3 Faculty of Management, Science and Technology, Amirkabir University, Tehran, Iran

Abstract

Technology development has been recognized as a major factor in the long-term national boom. In this regard, it is necessary to stimulate innovation in order to maintain a position in global competition. The necessity of designing and evaluating any innovation policy requires looking for ways to measure and compare the technological capability of different countries. This paper investigates and estimates the technology gap in Iran's steel industry with 13 selected countries to assess the technological capability of the world's top steel producers. The purpose of the present study is to identify the extent of technology gap, its causes, and provide solutions to overcome this technology gap. For this purpose, based on econometric method, two categories of inputs (raw materials, energy consumption and manpower) and outputs (total steel production) in the period 2009-2014 were collected through different databases, and then the data were analyzed through Frontier41 and GAMS soft wares. Results based on estimating the technological frontiers of each group of countries and comparing them with existing technology meta-frontier indicate that Iran has the largest technology gap in the steel industry compared to the selected countries,so based on literature review, some solutions has been provided at the end of the paper.

Keywords

References

Abdi, E., Dashti, Gh, Ghahremanzadeh, M & .Hosseinzad, J .(2016) Analyzing the technical efficiency and technology gap of poultry units in Sanandaj county. Animal Science Researches,49-61 .(In persian)
Abramovitz, M. .(1986). Catching up, forging ahead, and falling behind. The Journal of Economic History, 46(2) 385-406
Adab, A., Ghazinoory, S, Ghazinoori, S,  &Shahverdi, H .(2018). The Strategies of Iran Steel Industry Value Chain Upgrading through Innovation System Perspective. Science & Technology Policy, 10 (4),  1-97. (In persian)
Ali, K. E., & Samad, Q. A .(2013). A metafrontier production function for estimation of technical efficiencies of wheat farmers under different technologies. Journal of Asian Scientific Research, 3(9) 933-944.
Alizadeh, M.,Hatamzadeh, Y., Mahdavi, H., Tabibi, M., & Mousavifard, H .(2013). Supporting technology development in large corporations of Iran. Tehran, Iran: Vice President of Science and Technology - Science and Technology Policy Office. (In persian)
Arestis, P, Sawyer, M .(1994). Technology Gap. USA: Published by Edward Elgar.
Asia Pacific Partnership for Clean Development and Climate. (2010). The State–of-the-Art Clean Technologies (SOACT) for Steelmaking Handbook. Berkeley, California, American Iron and Steel Institute Washington, DC.
Attarpour, M, Kazazi, A., Elyasi, M, & BamdadSoofi, J .(2018). A Model for Promoting Technological Learning for Innovation Ambidexterity Development: A Case Study of Iran Steel Industry. Journal of Improvement Management Vol.12, No.3, Pp 45-136. (In persian)
Bank of Middle East Economic research group. (2015). Investigation Iran steel industry. Tehran, Iran. (In persian)
Battese G. E, & Coeli T. J .(1995). A model for Technical Inefficiency Effect in a Stochastic Frontier Production Function for Panel Data. Jornal of Empirical Economics, 20, 325-332
Bell, M., & Figueiredo, P. N. (2012). Innovation capability building and learning mechanisms in latecomer firms: recent empirical contributions and implications for research. Canadian Journal of Development Studies/Revue canadienne d'études du développement 33(1) , 14-40.
Bell, M., & Pavitt, K. (1997). Technological accumulation and industrial growth: contrasts between developed and developing countries. Technology, globalisation and economic performance, 83137, 83-137.
Carbo, M. C .(2011). Global Technology Roadmap for CCS in Industry. UNIDO.
Chaminade, C., Lundvall, B. Å., & Haneef, S .(2018). Advanced introduction to national innovation systems. Edward Elgar Publishing.
Chen, Jin, Xiaoyu Pu, & Haihua Shen .(2010). A Comprehensive Model of Technological Learning: Empirical Research on the Chinese Manufacturing Sector. London: Palgrave Macmillan.
Chen, Jin, & W. G. Qu .(2003). A new technological learning in China. Technovation, 23(11) 861-867.
Coelli, T. J. (1996). A guide to FRONTIER version 4.1: a computer program for stochastic frontier production and cost function estimation. CEPA Working papers,Vol. 7, 1-33.
Drine, I. (2012). Institutions, governance and technology catch-up in North Africa. Economic Modelling, 29(6), 2155-2162.
Emami Meibodi, A, Khoshkalam Khosroshahi, M., & Mahdavi, R.(2011) .The economic foundation of efficiency and productivity measurement. Tehran: Allameh Tabatabai university. (In persia)
Engel, J. & Taglioni, D. (2017). The middle-income trap and upgrading along global value chains. Global value chiain report, Chapter 5.
Fagerberg, J. (1987). .A technology gap approach to why growth rates differ. Research policy, 16(2-4) , 87-99.
Fagerberg, J., & Godinho, M. M .(2004). Innovation and catching-up. Georgia Institute of Technology.
Gholizadeh, H., Naeini, A. B., & Moini, A. (2015). A quantitative model of technological catch-up. International Journal of Engineering & Technology, 4(1), 233-243.
Iyer, K .(2011). Technology gap, catching-up and outward orientation: Analysis of 63 countries. Applied Econometrics and International Development, 11, N 2. 5-20.
Jung, M., & Lee, K .(2010). Sectoral systems of innovation and productivity catch-up: determinants of the productivity gap between Korean and Japanese firms. Industrial and Corporate Change, 19(4), 1037-1069
Karakaya, E., Nuur, C., & Assbring, L .(2018). Potential transitions in the iron and steel industry in Sweden: Towards a hydrogen-based future?. Journal of cleaner production, 195, 651-663.
Kawabata, N .(2018). Development of the Vietnamese Iron and Steel Industry under International Economic Integration. Graduate School of Economics and Management, Tohoku University, No 396.
Landini, F., Lee, K., & Malerba, F. (2017). A history-friendly model of the successive changes in industrial leadership and the catch-up by latecomers. Research Policy, 46(2), 431-446
Lee, J, Zong‐tae, Bae, and Dong‐kyu Choi .(1988). Technology development processes: a model for a developing country with a global perspective. R&D Management, 18(3) , 235-250.
Lee, K. (2013). Schumpeterian analysis of economic catch-up: Knowledge, path-creation, and the middle-income trap. US, New Yourk: Cambridge University Press.
Lee, K., & Ki, J. H .(2016). Rise of latecomers and catch-up cycles in the world steel industry. Research Policy, 46(2) , 365-375.
Lee, K., & Malerba, F.(2017). Catch-up cycles and changes in industrial leadership: Windows of opportunity and responses of firms and countries in the evolution of sectoral systems. Research Policy, 46(2), 338-351.
Lee, Keun, & Lim, Ch .(2001). Technological regimes, catching-up and leapfrogging: findings from the Korean industries. Research policy, 30(3). 459-483.
Moreira, Vh., & Bravo-Ureta, Be. (2010). Technical Efficiency and Meta Technology Ratios for Dairy Farms in Three Southern Cone Countries: A Stochastic Meta Frontier Model. Journal of Productivity Analysis, Vol 33, Pp 33- 45.
Nkamleu, G, Nyemeck, J and Gockowski, J. (2010). Technology Gap and Efficiency in Cocoa Production in West and Central Africa: Implications for Cocoa Sector Development. Working Paper Series No 104, African Development Bank, Tunis, Tnnisia.
Pardo, N., & Moya, J. A. (2013). Prospective scenarios on energy efficiency and CO2 emissions in the European Iron & Steel industry. Energy, 54, 113-128.
Popov, V.(2015). Catching-up: developing countries in pursuit of growth. Munich personal RePEc archive (MPRA), No 65878.
Sato, H (2009). The iron and steel industry in Asia: Development and restructuring . Institute of Developing Economies, Japan External Trade Organization (JETRO),No 210.
Shan, J, &  Jolly, D .(2011). Patterns of technological learning and catch-up strategies in latecomer firms: Case study in China's telecom-equipment industry. Journal of Technology Management in China, 6 (2), 153-170. World steel association . (2017). world steel in figures. No. 50.
Xie, W, & White, S .(2006). From imitation to creation: the critical yet uncertain transition for Chinese firm. Journal of Technology Management in China, 1(3), 229-242.
Yap, X. S., & Truffer, B  (2019). . Shaping selection environments for industrial catch-up and sustainability transitions: A systemic perspective on endogenizing windows of opportunity. Research Policy, 48(4), 1030-1047.
Zakeri, Yadollah, Fazeli, Samira, Sadri, Malek Arsalan, & Doudabinezhad, Amir. (2014). Energy Efficiency Roadmap - The Necessity and Case Study of the Steel Industry, 10th International Energy Conference, Tehran, Iran.
Zibaei, M., & Jaefari Sani, M .(2008). Determination of Technical Efficiency and Technology Gap Ratio in Milk Production Units in Iran, Case Study: East Azarbaijan Provinces, Isfahan, Tehran, Khorasan, Fars and Yazd (Application Metafrontier Method). Water and Soil Sciences (Journal of Sceince and Technology of Agriculture and Natural Resources, 12 (43). 315-324.

Files

History

  • Receive Date: 12 September 2019
  • Revise Date: 26 November 2019
  • Accept Date: 29 December 2019

Share

How to cite

Statistics