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Technology refers to the application of
knowledge, skills, principle, idea, events to
improvement of goods and service that have
utility and value.
Technology lies at the heart of economic
development and human progress,improvement, faster production and ultimately
improve productivity and growth.
TECHNOLOGICAL
ENVIRONMENT
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Components of Technology
Input
Semi finished products and goods.
Output Produced resources.
Production Activity
The mode of converting inputs into outputs.Technology
The transformer and the core of the
transformation facility.
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Characteristics of Technology
It involves a particular set of elements for the
production of a given service or commodity.
Technology is a dynamic phenomenon that
changes over time to develop new methods ofproduction.
It needs to be continually improved.
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Determinants of technological
environment Infrastructure in technological education,
training and research.
Quality of human resource in terms of
research aptitude spirit and enterprise. Incentives and facilities for research and
development.
Access to foreign technology. Effectiveness of patent, copyright and other
laws for protection of intellectual property.
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Research and development in
INDIA
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In currently spends about 0.8% of GDPon research and development and thescience and technology policy(2003)has rise
2.0% in the year 2007. In India there areseveral incentives provided.
1.Income tax relief on RD expenditure.
2.Weighted tax reduction for sponsoredresearch programme.
3 Direct financial support to R and D project.
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INDIAN TECHNOLOGICAL
ENVIRONMENT
Institutional environment
oICSR-Indian Council of Scientific Research.
oDST-Department of Scientific and Technology.
o ICMR-Indian Council for Medical Research.
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4. Exception from the payment custom
duty on goods imported for the use in govt.funds for R and D projects.
5.Provision of accelerated depreciation
allowance on plant and machinerydeveloped technology.
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Management of technology
Technology is a high risk costly uncertain
activity.
To achieve break through which have
social significants and profit potential for
the originater increasingly larger
investment in research must be made.
To obtain cost discovery effectiveness and
justify research and development
expenditures firms need potentially high
pay off.
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A risk of the product being duplicated or
closed imitated
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Constraints of technological
growthPollution of biosphere.
Traditional social institutions and values.
Industrial resource base.
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Pollution:
o Pollution is an unavailable consequence of
industrial production. Smoke, smell and dustare generated by industrial establishments.
oHarmful chemicals
o
Industrial pollutions etc. becomes a threat.
Industrial resource base
o Industrial resource base comprises minerals,
different forms of energy, water supplies, skilled
labor force and human knowledge
oThere is limit to the availability of these and this
limitation checks the advancement of technology.
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Social Institutions
oA third factor limiting technology is social
values and institutions that may beinconsistent with the fact productive potential
that is present in technology.
oMany societies, perhaps most of those that
adopt modern technology,, encounters similarless chamatic problems in arriving at a
decision between their traditional social
institutions and the new trends of
technological development.
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Sources of technologicaldynamics
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Meaning
Technological change may be
INTERNAL or EXTERNAL
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Innovative
dynamics of
the company
Customer
needs/expectations
Social forces substitutes
Innovations by
research
organizations
Goverent policy
Demand
conditionsSupplier's forces
Competitive
dynamics
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Factors
1)Innovative drive policy.
Technology as a driving force ofcompetitiveness and development of a
company.
Great important to R & D.Eg : Ranbaxy
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2)Customer needs.
Customer is the king.
We must consider their needs
expectations
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3)Demand conditions.
Customer demand influence the
technology.
Customer Demand on size, colour,
quality, price.
The world must be in a fast growing
trend.
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4)Suppliers offerings
Technological changes are encouraged by
suppliers of a company.
Like capital goods and other technology
suppliers.
Eg: construction of engineering firms.
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5)Competitive dynamics.
Competition compels the adoption of the
best technology.Eg: Japanese companies.
Absence of or lack of competition was a
major reason for technologicalbackwardness.
Eg: India
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6)Substitutes.
Substitutes is a compelling reason for
technological change.
It is a function of the relative value to price
of competing products and switching cost
associated with changing between them.
Technological change create new product
use that substitute for others.
eg: fiberglass for plastic or wood.
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7)Social forces.
Environmental pollution or other ecological
problems.
Demand or preference for eco-friendly
products.Eg: Japan
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8)Research organizations
/Technological facilities.Technological environment of the business
enriched by research organizations.
Like Council for Scientific Research(ICSR)Central Food Technological Research
Institute
(CFTRI)Eg:Amul
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9)Government policy.
Govt policy important factor for
technological change.Some countries give preference for
labour.eg: Kerala, keralites fight against
computerization.Some times govt adopt foreign
technology.
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