At times technology can appear trivial and flippant – as if it’s more about gadgets and gizmos for yuppies than anything else.

If so, is there a case for significant investment in the development of domestic technology while SA is concerned with weighty issues like poverty alleviation and growth?

The answer lies in thinking about development and growth in an uncertain global environment.

Economists have always differed over the best economic development strategies. A variety of trends have come and gone and the debate on whether to rely on the market or an interventionist developmental state is not yet over. Each side cites supporting evidence and development economics seems at sea.

The problem appears to be that development theory has sought to answer the wrong question. Instead of efforts to identify a single silver-bullet development strategy, it is more important to possess the capacity to adjust to radical environmental changes. The flexibility to respond to external shocks can only be achieved by moving from technological know-how to “know-why” through the attainment of solid technological credentials.

In SA, interventions such as the Accelerated & Shared Growth Initiative are important but they cannot be timeless solutions. While investing resources in their pursuit, substantial resources still need to be invested in technological capacity.

The fact that the main nonpolitical cause of turbulence in the global market has been the introduction of radical technologies should be an endorsement of the validity of technology as a driver of long-term economic growth and wealth creation.

Time and again new technologies have disrupted economic structures and relations by introducing radically new ones. These techno revolutions have made existing competences obsolete and put incumbents and new entrants on a new competitive footing. By making previous productive methods obsolete, they create new opportunities for the quickest.

Recently, technological discontinuities have become more visible as technology cycles have shortened and their impact become more widespread. This should make the choice of development strategy quite simple. The correct strategy should incorporate a commitment to investment in technology to acquire strategic degrees of freedom.

It is not surprising that discussions at the WTO are as much about trade as they are about intellectual property. The futility of the last WTO round showed how dim the prospects of catching up with developed countries through negotiation are.

This is partly because competition between developed countries themselves is intense and calls for sustained investment in intellectual property. It would be unrealistic for developing countries to believe that they could fare better without making comparable efforts in acquiring and deploying intellectual property.

Developing countries have traditionally relied on the receipt of mature technologies from developed economies, leaving the technological cutting edge to the developed nations.

At the tail-end of the technology cycle at which importers of mature technologies participate, returns are lower, products or processes are commoditised and the value of intellectual property is diluted by imitation and the threat of new technological substitutes. It is little wonder then that the importers of technology are overwhelmingly the poorer nations of the world.

Technology’s importance has also been demonstrated by how it has more broadly shaped the fortunes of nations. It has provided superior weaponry, enhanced industrial competitiveness and provided relief from natural disasters, for instance.

Investment in technology has been as much about productivity and wealth creation as it has been the long-term guardian of sovereignty and self-determination.

Astute economic management must include substantial investment in technology development. SA has managed the macroeconomic environment most responsibly. The next challenge is investing in boosting the country’s innovative capacity with the same sense of mission.

Editor’s note:Wellington Chadehumbe is the CEO of Triumph Venture Capital and a senior Advisor to MDC President and Prime Minister designate Morgan Tsvangirai,this article was previously published in The Financial Mail