Reviving Appropriate Technology
Manufacturing technologies have become increasingly skill-intensive, and automation and other forms of innovation have reduced labor’s share of manufacturing value added. Reorienting global innovation in a more labor-friendly direction would benefit developing countries and advanced economies alike.
CAMBRIDGE – In 1973, the British economist E.F. Schumacher published a book with the captivating title Small Is Beautiful, advocating the use in poor countries of human-scale, less capital-intensive technologies more suited to local conditions. The book sparked vigorous debate among economists in the 1970s and 1980s on “appropriate technology.”