FIGURE 7.5 Framework for Policy and Instruments to Support the Firm-Level Adoption of Technology Firm-level adoption of technology
General business functions (GBFs) (applied to all firms)
GBF 1
GBF 2
GBF 3
SBF 1
SBF 2
SBF 3
Technologies B1
Technologies B2
Technologies B3
Technologies C1
Technologies C2
Technologies C3
Policy instruments: Stages:
Sector-specific business functions (SBFs) (applied to firms in a specific sector)
Ensuring enablers
Technology centers (TCs)
Business advisory services (BAS)
Technology extension services (TES) Adequate diagnostics
Good targeting
Appropriate human/financial resources
Good evaluation mechanisms
Source: Original figure for this volume.
1. Supporting Basic Technology Upgrading: Business Advisory Services Business advisory services (BAS) consist of access to or the direct provision of specialist advice in areas such as accounting and financial services, human resources management, legal services, supply chain management, marketing and advertising, or pricing strategies. The delivery model tends to be more centered on demand. It is often structured around physical centers that act as infrastructure to serve SMEs and entrepreneurs, which can find either a suite of available services or referrals to those services. These services are directly linked to the digitalization of GBFs, and the specialist or consultants can act as mentors to SMEs during the digitalization project. These BAS models target smaller firms, although their more demand-driven approach is probably better suited to medium-size firms that may have more specific needs. BAS are a common type of instrument in many countries but are implemented using different business models and degrees of proactivity in getting firms to engage. BAS were a key policy instrument of some of the “Asian miracles” such as Japan and Singapore (Cirera and Maloney 2017). In addition, some impact evaluations suggest very high returns for this type of intervention in developing countries. In low-income countries, agencies may struggle to find high-quality consultants to implement these services effectively, and willingness to pay for these services is usually low, which makes it difficult to reach out to large numbers of beneficiaries. The primary target group of advisory services is usually SMEs. Owners and/or managers of SMEs often have a relatively narrow set of skills and competencies and limited networks, and therefore may not be knowledgeable about the skills needed to Policies and Instruments to Accelerate Technology Adoption 185
