ABSTRACT
It was suggested in Chapter 2 that technological change is a key player in the continued viability of national shipbuilding industries. In concert with world trade, it is instrumental in boosting the profitability of some shipbuilders while inhibiting the competitiveness of others. As visualised in the shipbuilding descriptive model, shipbuilders adopt either the mantle of technological leaders or abide by the constricting characteristics of technological laggards. The former capture a substantial chunk of the ship market and compel the latter to react if for no other reason than to remain in business. The reaction requires some attempt to grapple with the new technology which underpins the success of the interlopers: either by forming, with government help, a market immune from the influences of the technology leaders; or through belated attempts, again with government assistance, to adjust to the rigours of the new technology. The laggardly shipbuilder has some hopes of eventually being able to compete on equal terms with the technology leaders if the latter course of action is successfully accomplished. Thus, technology is the crucial supply factor which affects all manner of production from quality of capital plant, site layout, and shipyard size to quality and use of labour. Moreover, in its product innovation form, it has a direct effect on demand too. Clearly, any shipbuilder hoping to retain its market share, let alone augment its market penetration, must be cognisant of technological developments and the implications of such developments on both the production aspects of shipbuilding and the market for shipping.
