In the paper, it is argued that technology is a forceful change agent in society, at the level both of individual firms and of the society at large. At both levels, however, there is a definite need for ‘management of change’. In this context, a balanced and integrated technology policy should contain three principal and interrelated elements determining innovative potential, namely technological opportunities, structure of the industrial sector, and size and structure of market demand. This view is illustrated by means of some examples from Japan and Sweden. It is concluded that the industrialized countries require a broader policy framework to accommodate these changes without undue tension.
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