Industrial Location and Globalization of Enterprise

1. Industrial Location and Globalization of Enterprise • Seminars • Film in class on April 7: Global Assembly Line • On exam! • Review • Questions • Technology: Engine of Change? • Defining technology • Technology change • Space-shrinking technologies • Transportation • Product Life Cycle

2. Seminars Schedule Easter

3. Seminars • 30 minute seminar – no interruption • Power point/or overheads • Content will be guided by text or readings + new material • Innovatively structured • 30 minutes - innovative activity • 15 minutes wind down and discussion

4. Defining Technology • Technologyliteral definition: the study of skill or craft • Technologybroad definition: • Physical objects or artifacts (any physical object fashioned by a human), activities or processes (e.g. steelmaking) and the applied knowledge or know-how that creates utility • Technologynarrow definition: • Application of science to economic objectives • Technologyunfortunate definition: • Electronic or digital products and systems considered as a group – “do you use technology in the classroom?” • Technological change - usually relates to the broad definition!

5. Technological Determinism? • What keeps the capitalist engine in motion… (Joseph Schumpeter) • Great growling engine of change (Alvin Toffler) • Environmental determinism • environment causes, dominates even determines pattern of human life and human behaviour, that people are conditioned by environmental factors • Technological determinism • technological change is inevitable and the sole influence on the economic landscape and economic organization, or that technological change is linear or sequential

6. Typology of Technological Change - An Evolutionary Perspective • Incremental innovations - small scale, progressive • Radical innovations - discontinuous events, • transistor and semi-conductors • (Vacuum tubes) • Changes of technology system - whole tech systems, information tech, biotech, space tech • together with organizational and managerial innovations • Change in techno-economic paradigm- overarching logic for tech. systems with impacts on economy/society Chris Freeman

7. Kondratief/Kondratiev Waves (1920s) • K-waves: about 50 years • correspond to change in techno-economic paradigm • prosperity, recession, depression and recovery • each wave has leading regions/countries

8. Carrier Wave • Not an isolated breakthrough but leads to connected series of innovations • Moves beyond original industry through backward and forward innovations between industries • Product becomes attractive to consumers and captures the public imagination, impacting consumer culture

9. Carrier Wave II • Steam engine • mining, transport, factory production, agriculture • Sewing machine • refined and improved shifts from factory to household • Thomas Crapper’s flushing toilet • changes in house design, sewer networks, sewage treatment

10. Tech Change in Air Travel

11. Passenger Transportation • Commercial aircraft • Speed • Range • Cost • Passenger volumes

12. EU Air Passenger Transport

13. LAX Total Air Passengers (#5 in world)

14. What is a TEU?