ABSTRACT
This chapter provides a concise picture of the main developments in numerically controlled machine tools (NCMT) and the patterns of diffusion of the diffused technology in both industrialized and developing countries. In analyzing the economics of diffusion of NCMTs, the impact of this technology on scale economies deserves special consideration. The share of NCMTs in the total production value of metal cutting machine tools in leading industrialized countries increased from 25 percent in 1976 to 41 percent in 1982. The less dramatic evolution in terms of stocks is due to the fact that the share of NCMTs in total production is far greater in value than in units. The diffusion of NCMTs is explained not only by the maturity of the technology but also by the significant expansion of the user market. Although NCMTs are acquired for a variety of reasons, the saving in labor costs is a main determinant in the economics of NCMTs.
