International competition in the bicycle industry : keeping pace with technological change

Diffusion of innovation proceeds at varying rates in different countries, creating differences in the productivity with which resources are used, and hence affecting the competitive position of nations. At this moment, there is a special ferment in the world of manufacturing as organizational innovations, automation, and new materials are transforming not only the manufacturing process but also, in many cases, the product itself. Developing countries face a special challenge as they determine how best to keep pace with the changes. In this study, the authors project the effect of innovative manufacturing technologies on the long-term productivity of firms and countries. It is their belief, that through such analysis, they are enriching the debate on differences in international productivity, and suggesting new policy directions to improve productivity in developing countries. As regards the bicycle industry, will the advent of new technologies pose a threat to bicycle manufacturing in developing countries? If so, what options are available to companies in these countries, and how can these options be best exploited?