Technological Technological EnvironmentEnvironment

Relationship between business and technology exist

J.K. Galbrath : Technology is systematic application of scientific or other organized knowledge to practical task.

1983- As yeas of Scientific Successes

Photography : 112 YrsTelephone : 85 YrsSteam engine : 42 YrsRadar : 18 YrsTransistor : 5 Yrs

Technology feed itself. Technology makes more technology possible

Social Impact of Technology

1 Technology reaches people through business

2 High expectation of consumer

3 System complexity

4 Social change

5 Technological Phases

PhasePhase Time periodTime period ActivityActivity Primary skillPrimary skill

Nomadic Nomadic AgarianAgarian

Untill 1650Untill 1650 HarvestHarvest ManualManual

AgarianAgarian 1650-19001650-1900 Plant and Plant and HarvestHarvest

ManualManual

IndustrialIndustrial 1900-19601900-1960 Material Material GoodGood

Manual & Manual & MachineMachine

ServiceService 1960-751960-75 Focused Focused

ServicesServices

Machine & Machine & IntellectualIntellectual

KnowledgeKnowledge 1975-901975-90 AbstractiveAbstractive

WorkWork

Intellectual Intellectual and and ElectronicElectronic

Technology and Economy

Productivity

Qualityand Quantity

Technology

1. Increased Productivity

2. Need to Spend on Research & Development

3. Technology transfer

4. Jobs tend to become more intellectual

5 Problem of techno structure : ESOP

6 Need for multi professional

7 Increased regulation & stiff opposition

8 Rise and decline of product & organization

9 Insatiable demand of capital

Technology at plant level

1. Technology and organization structure

2. Resistance to change

3 Problems for importing technology

4 Inability to absorb technology

5 T.Q.M. / B.P.R.E. / F.M.S.

6 Fear of risk

R & D Expenditure in India

India currently spends about 1% of G.D.P. on R & D and Science and technology policy (January 2003) has the target to raise to 2% by 2007.Public Sector= 80%($ 3.2 billion)

In developed country 60-80% is by private sector.

Global evidence suggest that there are great advantage from R&D activity in the long run. In Finland total expenditure on R&D as proportion of GDP rose from 1.5% in 1985 to 3.2% in 2001. During this period ,its export/GDP ratio doubled to 39%, the share of high tech exports in total exports rose from 6% in 1990 to 24% in labour productivity 2001 rose from 40% to 100%

Various state agencies involved in the clearing Foreign Various state agencies involved in the clearing Foreign collaboration Agreement for technologycollaboration Agreement for technology

AgencyAgency Main featureMain featureFIPBFIPB To increase F.D.I. through transparent and To increase F.D.I. through transparent and

effective policieseffective policies

FIPCFIPC To facilitate FDI & identify area of FDITo facilitate FDI & identify area of FDI

FIIAFIIA To deal with the problems faced by foreign To deal with the problems faced by foreign investor in project implementationinvestor in project implementation

(IP & ID)(IP & ID) To disseminate information about foreign To disseminate information about foreign investment climate in country, to coordinate investment climate in country, to coordinate and monitor project for FIand monitor project for FI

SIASIA To guide the prospective entrepreneurs on To guide the prospective entrepreneurs on foreign collaboration and capital good importforeign collaboration and capital good import

RBIRBI To facilitate, promote, and clear FDI in To facilitate, promote, and clear FDI in selected area of national importanceselected area of national importance

Business Ombudsman

To deal with complains regarding delay in The clearances in approval of projects.

Main problems and issues facing Main problems and issues facing technology environment and policy in technology environment and policy in IndiaIndia Heavy dominance of government in Heavy dominance of government in

technology dept.technology dept. Condition of stagnation in technology Condition of stagnation in technology

research research Low rate of technology commercialiationLow rate of technology commercialiation Weak intellectual regime Weak intellectual regime Limited import of technology due to Limited import of technology due to

restrictionrestriction Inferior proposition of Indian partnerInferior proposition of Indian partner Import of outdated and inappropiate Import of outdated and inappropiate

technologytechnology Little emphasis on technology assimilation Little emphasis on technology assimilation

and absorptionand absorption