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Schumacher meets Schumpeter: Appropriate technology below the radar

This paper discusses the shift in technological innovation from developed to developing nations, and its link to economic growth and poverty reduction. The author writes that until the 1960s, technological innovation activities took place in wealthy environments to meet the needs of rich, industrialised nations. But a rising entrepreneurial spirit, higher incomes and favourable economic conditions in developing nations such as China and India have created a favourable environment for the development and diffusion of appropriate technologies: low cost solutions for the poor. The author suggests that these parts of the world are likely to become the centre of appropriate technology development in the future due to the size of the population in need of innovations, as well as growing technical capabilities. He argues that this geographical shift will move technological progress away from large companies to small local producers.