Flexible Automation in Developing Countries : The Impact on Scale and Scope and the Implications for Location of Production

The diffusion of computer-based or flexible automation (FA) has been seen as a key to the future industrialization in developing countries. If, as was thought, the impact of FA on economics of scope and optimal scale were to reduce optimal scales and therefore firm sizes, industrial production would be ideally located in developing countries. However, the book reveals that the diffusion of FA may actually act as an obstacle to industrialization in these countries. Ludovico Alcorta examines the extent of, and motives for, the diffusion of FA at global level and then turns to the local and firm level, bringing together in-depth studies of 62 firms in Brazil, India, Mexico, Thailand, Turkey and Venezuela. Research focuses upon the impact of computer-numerically controlled machine tools on scale and scope by exploring changes in lot sizes and product variety (product scale and scope), total plant output (plant scale) and total firm output (firm scale). Barriers to setting up FA-based operations are discussed, as are factors which may affect a decision to locate in a developing country.