SMALL FIRMS, NEW TECHNOLOGIES AND HUMAN-RESOURCES REQUIREMENTS IN CHILE

What is the effective impact of the recent wave of technological change on small firms in traditional industries? An empirical survey of small knitwear producers in Chile shows that technological change tends to concentrate heavily on machinery upgrading, while the diffusion of new organizational techniques is lagging. Overall, new technologies seem to have little impact on the skills requirements or training activities of small firms; however, they seem to contribute to a stricter task distribution within the firm, instead of the flatter organizational structure now heralded as 'best practice' for modernizing enterprises. This specificity of the impact of technical change in small firms is important for public policy, and should be considered in the design of appropriate actions in the areas of education and training, technical assistance and institutional support.