A Theoretical Survey and Policy Implications on the Choice of Appropriate Technology

Recently, as the negative effects of high-tech oriented social development are recognized, the interest in appropriate technology is increasing. The purpose of this study is to compare and analyze the existing economic theories of appropriate technology choice to find policy implications for Korea. The appropriateness of technology in terms of economics is established, and it is introduced and compared by dividing it into Neo-classical theory, Stewart’s model, and integrated view. We also look for the obstacles that make it difficult to select the appropriate technology. Stewart’s model or integrated view explaining the selection mechanism is more realistic and explainable than the Neo-classical theory focussing on only the factor prices. In order to ensure the appropriate technology selection, the obstacles in technology characteristics, technology demand, and technology supply should be solved. Currently, efforts to develop and spread appropriate technologies in Korea are being carried out in terms of developed countries’ aid to developing countries. However, the choice of appropriate technology for the Korean economy itself can be an important issue. Especially it is necessary to build and develop the ‘innovation system for appropriate technology’ in Korea. This paper is the first study to analyze the economic theory on the choice of appropriate technology in Korea. Since the study is confined to theoretical aspect, it should be complemented through practical or case studies.