POLITICAL CAUSES OF TECHNOLOGICAL FAILURE


* SANCTIONS 

The introduction of sanctions by the government, either by placing limitations on levels of production or requiring a company to gain official authorisation to enter or remain in a given market (e.g. broadcasting licences or pharmaceutical products) can result in failure.  Taking the case of the pharmaceutical industry, products must pass tests carried out by government scientists and be given approval before entering the market, which is not guaranteed, despite extensive research and development, at considerable cost.  Also, it simple may not be feasible to enter the market, given the stringent sanctions enforced by the government.  Such sanctions may be introduced to monitor business practise, protect consumers' interests or to simply maintain a controlling influence on the technology or market as a whole.  This often introduces much 'red tape', thus preventing companies from operating with the optimal level of efficiency; therefore, reducing the ability of the company and hence technology to compete in a given market.

* WAR

The outbreak or threat of war can cause failure for a number of reasons.  The effect on the economy of the country, in addition to individual markets, particularly technological industries, can result in the failure due to financial reasons.  The heightened fear of terrorist attacks following the attacks on the World Trade Centre, for example, has increased the fear that nuclear facilities could become targets; therefore, increasing the contentious nature of the nuclear power industry, thus reducing confidence amongst city analysts and ultimately leading to the failure of the nuclear industry.  Also, the research and development of a product or technology may be halted or reorganised to concentrate efforts on areas relating to national security; thereby, increasing the likelihood of the failure of a new technology in a market, due to inability to maintain research and development at levels, resulting in a likely reduction in market share and a firms competitive advantage over rivals.  

* TAX

The imposing of taxes, whether paid by the manufacturer, for example due to tax on raw materials, or on the completed product and thus payable by the consumer, may result in the failure of a given technology.  This may, for example be due to a lack of demand, as a result of increased prices and thus consumers' unwillingness to pay, or an inability to maintain or develop a competitive advantage over rival companies or technologies due to increased capital expenditure.  For example, according to the former executive chairman of British Energy, the climate change levy (a single stage tax payable by business on fuel as a specific rate per nominal unit energy) resulted in increased business rates; therefore, contributing to the failure of the nuclear power industry. 

* LAW

Laws can in many situations restrict technological development and stifle innovation; therefore, limiting the viability of production which may result in failure.  For example, despite being in place to protect the public, the stringent laws regarding the treatment, transportation and disposal of nuclear waste in the nuclear power industry, has created much hostility from lobby groups, in addition to anxiety amongst the general public; therefore, heightening the awareness of the sensitive, somewhat controversial issues regarding the industry, hence ultimately making nuclear power production less viable.


* REGIONAL

Regional politics may result in the failing of a particular technology, for example a feasible, successful technology in one region may fail to succeed in another, due to variations in any of the aforementioned political parameters.

CONTRIBUTIONS TO OTHER AREAS OF FAILURE;

* Political issues strongly influence the market environment in which a technology is developed and marketed
* Political factors also have a large impact on society; therefore, potentially influencing consumer preference, thus effecting demand which ultimately determines the success or failure of technology
* Political systems direct and control the culture of the consumers within that system.  Regional variations in politics, for example within different political constituencies, may influence the culture and therefore the market environment 
* Such political considerations may affect the economy, potentially reducing the economic viability of a given technology resulting in an inability to compete with similar, existing technologies
* A poor economy created as a result of varying political decisions, will result in a lack of investment in the economy and hence in a particular technology; therefore, severely disadvantaging it in comparison to those effected only indirectly by a given political system/regime
* Weak economies may result in increased research and development costs, in addition to increased capital expenditure in the procurement of raw materials; therefore, reducing the capital available to companies to create, for example, an effective marketing strategy, which may result in the strategy and thus the technology failing.  
* Also political issues may alter market characteristics, making a marketing strategy unsuitable and redundant, thus reducing the probability of the given technology succeeding.
* The design of a particular technology may be altered in order to account for the controlling influence of politics both directly on taxes, legislation and law and indirectly on societal opinion.  This may lead to increasing design and implementation processes, resulting in increased expenditure and cost, which in order to be recovered would be reflected in the price of technology; therefore, potentially reducing demand, and in extreme cases damaging the economy and thus causing the technology to fail.
* Even in a democratic society and in a 'free economy', politics influence the weakness or strength of competition within a given market; therefore, determining the success and hence cost of substitutes for a given technology, possibly resulting in the failure of a technology negatively influenced by political decisions