TECHNO - ECONOMIC PARADIGM

Paradigm with regard to technology is an example or pattern of something, it is basically another term for a model of something.

techno-economic paradigm’ describes how in the initial stages of any new paradigm, or pattern, there is an emphasis on the technical side rather than innovation.

As the technology, or paradigm, becomes more accessible and accepted, the next stage is the diffusion of the new paradigm from the innovative sectors to the economy as a whole. This is where there is a divide between the technology available and the skills required.

Once the divide is overcome the technology can then be used to collate data for processing into information, resulting in knowledge being acquired and used in decision-making processes to improve the business. This is critical in a country where SMEs make up 91% of South Africa’s business entities, contributing between 52% and 57% of the GDP, and 61% toward employment – including those with less skilled labour. 

This paradigm, or pattern, could assist developing countries in their attempts to close or minimize the divide, thus supporting the growth of South Africa’s biggest type of entity – SMEs. Moreover, the paradigm is consistent with the natural progression we are seeing within developing countries; where technology is being adopted and the skills are gradually acquired to utilize the technology. The only main difference is that in a developed country, the socio-economic factors and the infrastructure speeds up the time between adoption of the technology and its universal utilization.

(IIE, 2015)