The modern literature on economics clearly points to a fact: The size of the company is not the fundamental issue, but the density of the relationships that some companies establish with others. From comparative advantage based on natural resources, there has been a new pattern in which the important thing is the creation of competitive advantages based on intangible capital. The ability to generate wealth is increasingly based on the development of intangible resources. The differences between the different agricultural, industrial and postindustrial societies are better explained taking into account their different levels of knowledge accumulation than considering another parameter (Castillo 2001: 2).
In this sense, development policies, and particularly regional ones, cannot be limited to encouraging the acquisition of traditional factors of production: capital (soft loans), land (land for industrial development) and work (employment plans), far from it. less to rely on comparative advantages associated with the endowment of natural resources, low wages or geographic location. What determines survival today in increasingly tight markets is the value that can be added from the results of scientific and technological investment.
We already know that the axis of business activity is no longer the individual company, but the network of companies, clients, competitors, research centers and the same State ringed in a National Innovation System, creating intelligent organizations which react in advance to the rapid changes in your environment.
In response to this reality, conceptual innovations have been incorporated for some time aimed at supporting the ability to undertake, generate new jobs and improve efficiency levels in small business units. The "Business Incubators" are among the alternatives that were designed to create an environment of greater protection for the creation and implementation of new companies. There is also another concept that is similar and that was born under the wing of some universities with a strong inclination to research and development in developed countries, this is Technology Parks, designed as a mechanism for linking with the company, and also to channel to a large extent the entrepreneurial spirit of its students and teachers.This type of experience has been seen with great success in Latin America in different versions adapted from the original experiences.
The objective of this presentation is to integrate the various interpretations of the new trends for business development in order to formulate some approaches that lay the foundations for the creation of a business incubator center in the city of Barinas.
The term business development is understood in this work as the different actions carried out by the production units in the face of government economic policies and that have determined their current state from the point of view of the determining factors of competitive advantages such as technology and access to external markets.
The conceptualization that will serve as a frame of reference for this presentation, emphasizes the terms of technological innovation and the different agents involved in it: who creates and disseminates it (Universities and Research Centers); who encourages it (official sector) and finally who uses it economically (companies).
The possible contributions of this study, although it is aware of its limitations, can be summarized in the following aspects:
a) The new trends that explain the wealth of nations reveal a growing consensus about the impact of technological innovation as a key to economic development and the standard of living of citizens;
b) A new typology on how to economically develop the region may be useful to implement a Regional Innovation System; and
c) The operationalization of some of the approaches outlined here will serve as a basis for future work on the topic.
Previous concepts.
Technology
basic antecedent of the concept of technology and everything that is known as technological culture has its origin in the findings of the research of Robert Solow, Nobel Prize in Economics in 1987. Solow showed in 1957 that almost ninety percent of the economic growth of the The United States during the first half of the century was attributable to so-called technological change and a scant 12 and a half percent to capital increases (Pirela, Rengifo, and Mercado 1991: 7).
Peter Drucker (1994: 32) recounts in his book The Post-Capitalist Society that none of the technical schools of the 18th century nor the Encyclopedia tried to produce new knowledge. None even spoke of the application of science to tools, processes and products, that is, to technology. This idea had to wait a hundred years, until 1840, more or less, when a German chemist named Justus von Liebig (1803-1873), applied science to invent, first artificial fertilizers, and then, the way to preserve animal protein, Meat extract. But what those technical schools and the Encyclopaedia did do was perhaps more important: they collected, codified and published techne, the mystery of the artisan trades, as it had developed over millennia. They turned, says Drucker, experience into knowledge,learning in textbook, the secret in methodology, doing in applied knowledge. Henceforth technology transforms world society and civilization through what is called the "Industrial Revolution".
Below we indicate several meanings of the concept of technology that will help us to shape this work:
The set of procedures and instruments, supported by scientific knowledge, that allow on a vast scale the action on things, specifically on nature, to satisfy man's desires or even to go ahead of them by raising them. Garmendia in Benavides (1998: 27).
The knowledge and information system derived from research, experimentation or experience and which, together with its own production, marketing and management methods, allows creating a reproducible form or generating new or improved products, processes or services. Benavides (1998: 31).
It is the organized set of all scientific, empirical and intuitive knowledge, and the process of its application in the production and commercialization of goods and services. It is normally produced and brought to full use in the productive sector, through a systematic chain of research, experimental development or engineering activities. (MCT 2000: 5)
Pirela, Rengifo and Mercado (1991: 11), approach technology from the point of view of technological culture conceived as a tool for knowledge of technological dynamics at various levels, either in industries, by companies or by branches; in research centers; including in national and regional terms, and consequently, also as a policy design instrument to transform this dynamic.
Innovation
Innovation has become a keyword in the development of the strategy of any company regardless of its size. The interest aroused by this important variable is closely related to the competitiveness that it is capable of providing. It constitutes the future of any company, sector or country. So much so, that the Ministry of Science and Technology (MCT) has placed its hopes on innovation to strengthen the country's productive apparatus through SMEs. Indeed, in the aforementioned document (MCT 2000: 5), the body in charge of promoting the technology states:
The master lines that guide the MCT's mission, namely: Generation of Knowledge and Promotion of Human Capital Development, Promotion of Innovation and Quality in the Productive Sector, Research and Development for Quality of Life, Strengthening and Articulation of Networks Support and Innovation Services; They are structured from the concerted identification of problems focused on our reality, and from there enter a process of valorization that creates spaces for solution, whose characteristic feature is the fluidity with which the knowledge produced by the various actors involved to facilitate changes, best practices and social innovations that make it possible to achieve the goals of sustainable development, with equity and democratization promoted by the National Government,It is not about imposing policies, but about convening broad sectors and facilitating their participation for the definition of strategies, decision-making and consequent action (underlined by the author).
The Salvat Multimedia Encyclopedia (1999), gives the term "innovation", from the Latin innovatio, two meanings:
to. Action and effect of innovating.
b. Creation and modification of a product and its introduction in a market.
Peter Drucker (1994: 64) conceives innovation as a very important and complex process by means of which new knowledge is created that makes other existing knowledge obsolete. This innovation can be of social origin, because organizations enlighten themselves, learn; or of scientific or technological origin. Indeed, Peter Drucker (1994: 207) points out that:
Innovation, that is, the application of knowledge to produce new knowledge is not, as many people believe, a matter of "inspiration", nor is it carried out by isolated individuals in their garage at home…. Innovation requires systematic effort and a high degree of organization…..But it also requires both decentralization and diversity, that is, the opposite of central planning and centralization.
We understand innovation, then, as a systematic, systemic and deliberate process of business transformation through which “… new ideas are conceived that, once developed, allow the introduction into the market of new products or processes, the adoption by of the company of new organizational structures, the use of new commercial techniques, management, etc. (Benavides 1998: 77).
Paradigms.
Defining the paradigm is of vital importance for this work, since it is necessary to locate ourselves today, in this twenty-first century, in this information age, in this knowledge society. No matter what we call it, the important thing is to know that the vast majority of people alive today were formed in a society that no longer exists and this implies that many things that they learned and that were successful at that time, today do not perform the same fruit. This is because the paradigm, the model, the way of doing things, the "truth" is different, it has changed, it has evolved.
Thomas Kuhn in his book on the structure of scientific revolutions * cited in Santosuoso (1996: 182), proposes a concept of paradigm which conforms to the study carried out in this work:
"Universally recognized scientific achievements which, for some time, provide a model of problems and solutions acceptable to those who practice research in a certain area."
The process that leads from one way of doing things to another, from one paradigm to another, is therefore generating a suffered process, which ends with a revolution.
Techno-economic paradigms and their changes.
Although to study the process of evolution of capitalist economies in the last two hundred years we could base it on the theory of long waves by the Russian economist Nikolai Kondratieff, the change in techno-economic paradigms we are going to focus on the theoretical proposal of a researcher Venezuelan named Carlota Pérez, whose work at the University of Sussex has earned her international recognition.
When studying or making a diagnosis of the situation in Venezuela, it is worth bringing up a fundamental factor in the work of Carlota Pérez (2000). This author attributes the "depression" phase of business cycles to a structural crisis of the socioeconomic system. Understanding this crisis as a rupture between the economic subsystem and the socio-institutional context in which it operates; a kind of decoupling that occurs when the economic subsystem, which is transformed and emerges as a result of the manifestation of potentialities for change associated with a new technological vector, comes into conflict with the existing socio-political structures. Given this event, Pérez maintains,growth does not resume until the socio-institutional framework manages to modernize and re-couple itself with the new prevailing logic in the techno-economic sphere.
This model created by the Venezuelan researcher Carlota Pérez, is presented in Santosuosso (1992) and represents a powerful idea to try to understand the situation in the country. The model is based on previous contributions, especially Shumpeter's ideas about technological revolutions, which occur in successive waves, causing a process of creative destruction in the productive apparatus and in its organization. What Carlota Pérez suggests is that the emerging technological system represented in globalization, Information Technology and Communications currently represent the dominant technological pattern after a long and deep crisis of structural adjustment and adjustment that involves major social and institutional changes.The development and dissemination of what will become the new paradigm passes through three stages.
In the first, during which a Technological Paradigm is born, there is a new combination of innovations that radically separate from the technologies in use and fundamentally originate problems about their market and their social acceptability. For example. Electric power in the 70s of the last century and personal computers in the 90s of this century.
In the second, the technological Paradigm, becomes a Techno-Economic Paradigm, after having survived the first tests on the market, and having demonstrated many economic and technical advantages beyond the areas where it was born, through a new structure. cost. The key factor of production (cheap input) changes, and it is what characterizes this phase: labor (1770/1840), coal and transport (1830/1890), steel (1890/1940), oil (1930 / 1990), microelectronics and information in the paradigm in process (1980 /?).
With the new paradigm, the way of doing many of the things that constitute the usual practice changes. But the socio-institutional framework is conservative by definition: it was created and designed to keep the system stable based on the previous paradigm. This rigidity makes it unstable since stability, according to cybernetics, is a dynamic and not a static phenomenon. This is how the crisis situation was born: on the one hand, the productive portion of society is experiencing the paradigm shift, and is crying out for new rules of the game that better adapt to the new way of playing. On the other hand, those who formalize these rules in the socio-institutional framework cannot respond with the speed that the change deserves, because they generally belong to the previous generation and, because they do not understand what is happening,they interpret anything that is suggested to them from the point of view of loss of power.
Once the elements of decoupling between the socio-institutional framework and the emerging paradigm have been recognized, and this has generated a change, the Wave enters its third stage, which the author calls, a Technological Regime, in which the Techno-economic Paradigm becomes the dominant paradigm.
When this is happening, there is the opportunity for entrepreneurs to start entirely new sectors of production. The pioneers of the new paradigm become myths: yesterday Henry Ford, who has given the name to an era, the one that is ending, Fordist production. Today, Bill Gates, who in the course of less than fifteen years has led Microsoft, a company born in the parking lot of his house, to be the largest company in the world in the key sector.
These events, desirable or not, are a response to an irreversible change: Today knowledge is being applied to knowledge. Providing knowledge in order to find out how to apply what already exists to obtain results is, in fact, what we understand by Knowledge Management. This new economic value of knowledge is necessitating that universities intervene in a more efficient way as creators and diffusers of that economically useful knowledge. The entrepreneurs of the future will come out of the universities.
The National Systems of Innovation. Its incidence on Business Innovation.
A National Innovation System (SNI) comprises all the institutions and practices that affect the introduction and diffusion of innovations in a national economy and represent, from an institutional point of view, the best way to understand the formation of "technological gaps" between countries (Freeman 1993: 35).
One way to conceptualize Venezuela's technological backwardness is by studying the flaws in its National Innovation System. Contrary to countries whose economic development has been pivoted by an aggressive NIS (see, for example, Freeman (1993) as thanks to a well-coordinated NIS, Germany and the United States surpassed Great Britain in the 19th and early 20th centuries and since Japan came to surpass these two colossi shortly after), Venezuela has failed to interpret the concept well and adopted technological innovation as something academic.
In Latin America, the SNI is known as the National Science and Technology System and in Venezuela it was administered and promoted primarily by the National Council for Scientific and Technological Research (CONICIT) together with some universities. Under this approach, academics were the only ones who believed they had the authority to carry out technological innovation, and on the other hand, entrepreneurs considered technology as a good exogenous to their operations which had to be acquired like any other input (Santosuosso 1996: 304).
The "academic" vision of the concept of "technological innovation" implied, according to Santosuosso (op. Cit.), That for something to be worthy of this qualification it should be a radical innovation. This great defect in our SNI begins, today, to be in the process of overcoming with the creation of the Ministry of Science and Technology (MCT) to which all the research and technological development centers created by the official sector have been attached since the decade of the 50, when Venezuela very timidly began, following the guidelines of ECLAC, a modern industrial development (Esqueda, Machado-Allison and Valdivieso 1990: 6).
In a document that presents the technological situation in Venezuela issued by the Venezuelan Association of Industrial Technological Research Institutes (AVINTI) published in 1994, the following is read:
"In Venezuela today, and always, technology has been understood as a final product (VHS, TV, WALK-MAN, FAX, etc.), however, technology and technology policies have not been adopted as a tool development due to the syndrome “not invented here”…. Through CONICIT and the various research and development (R&D) institutes associated with the Universities, the state dedicates resources to the initial activities of the development of a product or a production technology, while the state and the industrial sector dedicate scarce resources for the scaling and final development of science to transform it into the productive technologies required by Venezuelan society, and the few existing programs lack clear mechanisms to guarantee their continuity and success (AVINTI 1998: 68). "
While recognizing that although in a scattered way, the creation of research centers until 1994, constituted an important step in the institutional development of technological research, the gap that originated them is still in force, given the stagnation of the Venezuelan economy in recent years.
The challenge for the future is the National System of Technological Innovation (SNIT) proposed by the recently created Ministry of Science and Technology (MCT), which brought together all the official institutions dedicated to technological and scientific research. The SNIT "… is committed to the articulation of actions between the Government, the Companies and the entities that generate Knowledge, as a programmatic mechanism to shorten the distances that, conceptually and pragmatically, separate us from the maintenance of a growth model with social equity… … ”(MCT 2000).
Universities are currently adapting their structures to modern times which are requesting more relevance, more presence, more concrete contributions to the well-being of the society that finances them. The challenge for universities is therefore to get involved in the National Innovation System to form, together with the business sector and the official sector, the “development triangle”.
Table N ° 1 schematically shows the National System of Technology Transfer and Innovation proposed by the MCT, showing one of the programs through which the university can make a valuable and concrete contribution to business innovation: Business Incubation and Incubation.
National System of Technology Transfer and Innovation - Venezuela
Incubators and business incubators
Basic and oriented research, innovation projects and the formation of human capital are activities included within the supreme functions of the university such as teaching, research and extension. In the case of the SNI, it is required that the university adapt these functions to the objectives of the system. But in the case of business incubators and incubators, the university would be giving a more direct and planned contribution to the development of business innovation.
To understand what a business incubator consists of, it is necessary to know the concept of a Technology Park. In general, a technology park is a business development tool whose formation, according to Benavides (1998: 189), involves four basic elements:
The institutional, which refers to the entity or entities that sponsor it. The proposal can come from a member of the SIN, such as the official, business or university sector. The second factor is the university-research-technology relationship, which implies a new, more direct and planned relationship between the educational system and the business sector. A third factor that distinguishes technology parks from other instruments of technological development is the promotion of companies. A last factor refers to the economic environment, which considered in a broad sense includes the quantity and quality of the industrial location that the park promotes; easy accessibility, proximity to research centers, as well as the existence of an adequate telecommunications infrastructure.
Following Marti i Batera cited by Benavides (1998: 189) we can establish four modalities of technology parks:
1. Innovation Centers: Building or group of them located in the vicinity of an academic or research institution where the fundamental element is the offer of common services and facilities that allow achieving its main objective: the creation of small companies by individuals entrepreneurs.
2. Science and research parks: Research tasks linked to the university prevail. Production activities are excluded.
3. Technology parks: They constitute a large area strategically located and developed to offer a prestigious environment, whose basic objective is to attract and install high-tech companies.
4. Technopolis: A Japanese government initiative that groups three components: Social infrastructure (urban development), R&D facilities, and production facilities.
Within the first typology or innovation centers, we find, according to Benavides (1998: 191), the modality of Incubation Centers. They can be called Business Incubators, Business Incubators, Business Promotion Center, New Business Centers. These are industrial development policies promoted by government agents or by the private sector, which basically consist of physical spaces equipped to house business or industrial activities in the design stage, prototypes and formal start of production or services, to which assistance is added. technique and the necessary support to become a company. Its genesis and development have corresponded mainly to initiatives of Universities,Trade Union Associations and Regional Government Agents responsible for Economic Development policies, who have implemented these centers as a response in times of economic model crisis, in stages of search for development alternatives and also as a promotion of new export lines of products with high added value. In the United States there are more than 700 and in Europe approximately 900. They exist in Latin America, Japan and Southeast Asia.in Japan and Southeast Asia.in Japan and Southeast Asia.
Business incubators have the following advantages:
1. They increase the possibility of creating innovative companies as a result of business promotion activities of universities among professors and students.
2. The failure rates of established businesses in business incubators is much lower than it would be in other circumstances.
3. Most of these companies that are born in the incubators relocate in their vicinity, which is an advantage for the development of technology parks.
4. In these centers, user companies get a flexible space at subsidized costs, as well as the real possibility of obtaining common services such as administrative, accounting, marketing services, specialized assistance and, most importantly, business training.
5. In these centers associativity strategies and business clusters can be promoted as a way to further develop the business area.
The Ministry of Science and Technology has a Program to co-finance the creation of business incubators. The call is aimed at researchers, individuals, companies and universities.
Conclusions
Venezuela since 1958, when the dictatorship of General Marcos Pérez Jiménez fell, has moved from a model of extreme protection of the national productive sector; going through the discredited model of import substitution, to live today a commercial policy of almost total openness to imports of all kinds within a liberal model.
In this period of time, the economic indicators of growth and productivity, as well as the social welfare measures, have not given the expected result. As is well known, the Venezuelan productive structure is characterized by the fact that the industrial sectors generate substantial imports of inputs and scarce jobs and even so, they have low productivity when compared to the notable productivity of the oil industry; while the employer sectors: agriculture and services, logically tend to lower productivity.
Although this does not represent an exhaustive study on the economic development of Venezuela, the most important conclusion in light of the statistical data studied and the analyzes reviewed, has to do with the way in which the changes, especially those of 1989, were approached. As Parisca (1992) indicates and it seems that he is writing it today: “We have oscillated from one end of the range of options to the other, without mediating a parallel process of training and effective preparation of the universe of the fundamental actors of the process”.
In effect, the new forms of business modernization seeking increases in competitiveness incorporated into the Venezuelan production scenario in 1989, caused a growing sense of uncertainty in the majority of the small and medium-sized business community, due in part to ignorance and poor understanding of the meaning and own and real characteristics of these processes worldwide; in particular the situations that make companies in less developed countries competitive and the impact that technological innovation has had on industrial renewal.
This cultural and sociological aspect of the Venezuelan business community will be studied in depth in the Doctoral Thesis of the author of this work, which is entitled “Economic Development and Business Incubators. Barinas State Case ”in which I will confront, among other operational hypotheses, that of the Venezuelan protectionist culture. The main question and guide of the thesis will be to show that any attempt to increase the standard of living of the inhabitants of Barinas must be based on business development through the university-business sector-official sector link, using as a “hinge” to this linkage, the business incubator approach.
Another obstacle to the process of business transformation in Venezuela, and particularly in the State of Barinas, is their duration. Venezuelan entrepreneurs are used to quick and easy profits. Transformation experiences in other countries have shown that successful transformation takes decades to overcome in order to overcome deep accumulated deficiencies. Here the hypothesis is that surely, the current generation of entrepreneurs will not carry out all the required changes, so the next generation will have to be prepared to carry them out.
It is concluded, then, that it is necessary to generate strategic plans in the short, medium and long term with counter-shock actions in favor of medium and small companies in order to strengthen their productivity and positioning of new markets.
Recommendations: A proposal for Barinas
As Parisca (1992: 31) points out, the prospects of success in the transition from a model so deeply rooted in the Venezuelan economic and social culture, as we know the protectionist model was, to another that, although promising, implies greater risks and High demands in terms of individual effort will definitely depend on real changes in the Venezuelan mentality.
The mentality of the typical Barinese businessman, maintains the author of this work, and is going to demonstrate it empirically in his Doctoral Thesis, is molded in ease and short-termism. For most entrepreneurs in Barinas, profits must be quick and the state must protect them by providing cheap credit and technical assistance since the economic growth of the region depends on them. Changing this mentality would be very simple if it did not imply a questioning of the value of the human capital accumulated by these people throughout a life, in many cases satisfactory and full of successes. It would be simple if ……
"… it did not remove the foundations of the established power structures, to which some cling with the best intentions and others for much less altruistic interests. It would be easily acceptable if it did not involve almost a re-education of those who have been the educators and leaders of an entire generation. It is these difficulties that generally lead to the fact that reforms are carried out through generational renewal * (Pérez 2000: 61) "
Like Carlota Pérez, the author thinks that the changes in Barinas should be generational, but somehow this change has already begun and the opportunity is historic. Historical opportunity because today it is being developed around what we know as the Barinas Industrial Park, the business development policy and therefore technological development of the Barinas Municipality.
In the university sector, the inclusion of our highest House of Studies to the Knowledge Society is accelerated, due to the urgent need, which necessarily implies a more direct and closer relationship with the current demands of the society that finances it. Indeed, UNELLEZ, together with the other higher education institutions in Barinas, would make up the side of the triangle -UNIVERSITY - COMPANY - GOVERNMENT- provider or generator of the necessary knowledge to promote technological innovation, in addition to "promoting production initiatives by teachers and students of HEIs, in priority areas, through the constitution of SMEs. ”(Taken from the conference“ Policies and Strategies for the Development of Higher Education in Venezuela 2000 - 2006 ”, dictated by Dr. María Egilda Castellanos,Vice-Minister of Higher Education, in Mérida, March 2001 - ULA). The university sector is also responsible for the training of entrepreneurs and the institutional support necessary for the creation of companies.
The final recommendation is the establishment in Barinas of a Regional Innovation System that is inserted and nourished by the National Innovation System, thus taking advantage of all the incentives offered by the MCT for the implementation, via modernization, of technology-based companies which would be generated and incubated with the help of students and professors from higher education institutes, which will necessarily be part of this Regional Innovation System, in Business Incubators created for this purpose.
I think the bases are set; at the national level, the MCT approved the Science and Technology Law that supports the creation of business incubators as a tool to strengthen innovation and link with the university; At the regional level, we have a fairly important university presence in Barinas with UNELLEZ at the head, which represents an ideal intellectual and physical infrastructure for shaping any innovation strategy.
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