Unit 7

Technology Diffusion and Absorption

Structure
7.1 Introduction
Objectives
7.2 Technology Adoption
7.3 Technology Diffusion
Importance of Technology Diffusion
Different Perspectives of Innovation Diffusion Process
Technology Diffusion Curve

7.4 Technology Absorption

Benefits of Technology Absorption
Constraints in Technology Absorption
Issues Involved in the Management of Technology Absorption
Government Initiatives for Technology Absorption

7.5
7.6
7.7
7.8
7.9
7.10

Technology Life Cycle

Summary
Glossary
Terminal Questions
Answers
Case Study

Caselet
Then and Now
Scenario in 2004: Even as the global shift to emerging technologies like
LCD, PDP and projection TVs was picking up speed, Vice President,
Convergent Marketing Group, Digital Media Network Business, Samsung
Electronics, felt that the adoption would not be very slow in the Indian market
either. According to him, the shift to flat panel technology in India could be
much faster than what people anticipate. There was reason to be optimistic
about the scope of the market, if one could drive down costs. Developing
software strengths would lead to more applications in CTV and home
entertainment.
Flat Panel technologies include Liquid Crystal Display (LCD), Projection
and Plasma Display Panel (PDP) TVs. Already Flat CRT (Cathode Ray
Tube) TVs were witnessing almost 100 per cent growth in the Indian market
and projections were that by the next two years, half the CRT market would

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move towards flat TVs. Samsung, in keeping with its global philosophy,
would try to drive the LCD and plasma technology market through a twin
strategy of striving for affordable prices and communicating the benefits of
the new technology, as a focus on price alone would not achieve market
growth.
Scenario in 2013: It is the technology of LED that has been absorbed
successfully and as overpowered all others!
Source: http://www.financialexpress.com/news/driving-flat-tv-technologyabsorption-in-the-indian-market/88123 (Accessed on 14 March 2013)

7.1 Introduction
In the previous unit, you studied technology strategy and its importance.
Without proper management, no technology can be absorbed. In this unit
you will learn about technology adoption, diffusion and absorption which helps in
creating and acquiring new technologies. You will also learn about the technology
adoption plan that is needed for the implementation of the technology plan. It
focuses on the technology absorption, constraints in technology absorption, the
issues related to technology absorption and the experience of India in technology
absorption.

Objectives
After studying this unit, you should be able to:
explain the concept of technology adoption
discuss the concept of technology diffusion
describe technology absorption
explain the stages of the technology life cycle

7.2 Technology Adoption

Before discussing the issue of technology adoption, absorption and upgradation,
it is desirable to discuss the terminology.

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Adoption
Adoption is the process under which the various features of technology, which
is the subject of transfer, are suitably modified, changed or altered keeping in
view the needs of the buyer.
Adaptation
This phase comes after technology has been adopted and put into use for
production activities. In this stage a number of alterations and modifications are
made to suit the conditions.
Absorption
Technology is said to be absorbed if it is fully understood, so that it is in a position
to be further optimized and upgraded. It involves know-why exercises and basic
investigations into the product or process.
Optimization
Optimization of technology involves removing of rough edges through R&D and
value engineering to bring about savings in the use of material and energy
consumption both in product and processes.
Improvement and Upgradation
Technology absorption and optimizing capabilities can lead to further exercises
in improving the existing products and processes by R&D efforts of industry
and other associated research organizations. Technology upgradation exercises
lead to industry efforts in extending its know-why capability to a higher range of
products.
Of late, the concept of technology adoption has attracted much more
attention due to the explosive growth of new technologies such as internet,
wireless communications and broad band communications.
Technology adoption means the successful implementation of technology,
and deriving the full potential of technology. The adoption is relatively easy in a
new enterprise as compared to an ongoing firm, because there is no existing
system in new enterprises while in an ongoing enterprise, the prevailing systems
have to be modified and the existing work processes, working environment and
culture may have to be changed, which makes it more difficult.
Technology adoption requires gearing up of all the resources such as
internal and external infrastructure, human resources, raw materials, and
marketing. It has been observed that many technologies that were transferred
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from developed to developing countries were not successfully adapted, because

of the inappropriateness of those technologies for developing countries.
Causes of inappropriateness are discussed here:
Missing preferences of local markets and consumers
Technology is based on imported raw materials
Insufficient skills of local labour
Not scaled down to local market
Insufficient use of technology caused by the local labour
Excessive usage of capital goods and imported equipment
The other general reasons identified were:
High cost of transfer
Environmental pollution problems
Impact due to plant location
Impact due to energy inputs
Planning for Technology Adoption
Planning for the implementation of new technology should be thorough and should
encompass a relatively long time horizon to assure the stability of the new
system. The complex process of introducing a new technology necessitates a
practical plan which focuses on employees needs and deals with issues of
concern to them.
The steps in the process of technology adoption plan include the following:
Identify the target group: The target group signifies the customers. This
process involves the identification of the customers. The plan can be
implemented well if we know the view of the customers.
Locate and analyse the resistance to change: The introduction of new
technology in the organization causes the change process in the
organization. People can resist change because they are very comfortable
with the old values and beliefs.
Assess actual ability to change: It is required to check within the
organization whether they are capable of introducing the technology and
undergoing a change process.
Assess capacity and resources to change: To check whether one has
sufficient resources to undergo the change process.

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Access perceived priority of change: The organization has to prioritize

the activities of the change process.

Self Assessment Questions

1. In the _________ stage, a number of alterations and modifications to suit
the conditions are made.
2. _________ means the successful implementation of technology, and
deriving the full potential of technology.
3. For implementing a new technology, a practical plan is necessary.
(True/False)

7.3 Technology Diffusion

The term diffusion refers to the spread of a new idea which can be product,
technology, service or method from the time of its invention to the creation of its
ultimate adoption by an increasing number of users in different circumstances.
According to Rogers, Diffusion is the process by which an innovation is
communicated through certain channels over time among the members of a
social system and by which alteration occurs in the structure and function of a
social system as a kind of social change.
The process of adopting the new technology by the customers who come
to know about the technology from other customers is called technology diffusion.
It can also be defined as a process of closing the gap between what people do
not know and what they can effectively put to use.
Diffusion plays a pivotal role in helping the adopters take full advantage of
an innovation and to modify that innovation. It consists of four key elements:
Innovation
Communication channels
Time
Social system
Rogers identified five characteristics of innovation which can help to explain
the rates of adoption as follows: relative advantage, compatibility, complexity,
trialability and observability. He argued that the greater relative advantage,

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compatibility, trial ability, and observability and the less complex the perceptions
of an innovation are, the faster the rate of adoption.
Diffusion occurs within a social system, and the social system constitutes
a boundary within which an innovation is diffused. The social system has
structure, giving stability and regularity to individual behaviour in a system. The
change agent also needs to understand the social system for planning the
diffusion process effectively and efficiently.
In the diffusion process of innovations, information exchange occurs
through a variety of communication channels, such as mass media,
interpersonal channels, or interactive communication. Diffusion can be more
effective when two or more individuals are similar in nature, the degree to which
two or more individuals are different in certain attributes, is usually present in
communication about innovations.

7.3.1 Importance of Technology Diffusion

After innovation, the diffusion of technology is the ultimate goal of an organization.
A well-managed technology diffusion system enables an organization to plan its
technology development projects in a more meaningful manner as well as
transfer the technologies more successfully. Such an approach results in better
returns for the investments made in R&D and technology development systems.
Technology diffusion plays a major role in most of the countries today;
Diffusion enlarges the set of available technologies and increases the productivity
of the country. It also plays an important role in the sector of goods that are not
tradeable, than the sector with tradeable goods. Free technology diffusion
generates more gains compared to that of the free merchandise trade. We can
increase the merchandise trade by removing the diffusion barriers since the
countries achieve higher productivity by learning about the technology through
the diffusion process.
If we focus on the firm level, the need and importance of diffusion are
directly related to its innovative capacity and the levels of technologies developed.

7.3.2 Different Perspectives of Innovation Diffusion Process

Technology diffusion is an essential component of technological progress and
thus, an important source of economic growth. A major channel through which
technology diffusion occurs is investment in technology-embodied machinery

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and equipment. The different perspectives of innovation diffusion process are

as follows:
Traditional perspective: The traditional approach considers innovation
and diffusion as separate entities. This approach prevents the management
from perceiving the contribution an employee can place in the technology
development process.
Adoption perspective: This perspective focuses on how the various
channels and modes of communication (media, interpersonal etc.) can
be used to influence a diverse group of potential customers to adopt a
technological innovation.
Technological perspective: This perspective focuses on the technical
skills and tools required to implement/use the technological innovation. It
looks at how well the provider of technological innovation understands the
environment of the user and the users ability to apply the technology.
Infrastructure perspective: Infrastructure perspective is an important
factor for diffusion as the area in which technological innovation is targeted.
The various infrastructure aspects that affect diffusion are: transportation,
terrain, weather, availability of energy, communication, etc. The necessary
infrastructure helps in diffusion.
Regulatory/Societal perspective: This perspective focuses on the
effects of government policies, regulatory requirements, and bureaucratic
processes, and the development stage of the area in which the technology
is to be used.
Models perspective: In this perspective, models are developed for the
management to predict the behaviour pattern of potential users of a
technological innovation and finally develop strategies for diffusing an
innovation. To model a diffusion process, an analyst works with a few
variables to fit a curve that describes the spread of innovation over time,
the variables represent the size of the population, number of alternative
technologies in use.
Comprehensive perspective: The comprehensive perspective uses all
the perspectives mentioned above in developing a diffusion strategy. It
views the diffusion process as part of a total innovation process, where
many people are involved and requires that each person involved with
technological innovation must maintain interest in it.

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7.3.3 Technology Diffusion Curve

In 1997, Greenwood and Yorukoglu studied that a technology typically diffuses
through an economy over a period of time, in an S-shaped pattern (Figure 7.1).
When a technology is first introduced in the market it has a small number of
providers; technology is expensive and has limited supply. The curve starts to
trend upward after a critical mass of having purchased the technology after
knowing the benefits.

Figure 7.1 Technology Diffusion Curve

When consumers valuing the product at more than its cost of production,
generally signaled by the diffusion curve passing the point of critical mass,
induce new producers to enter the market, ultimately leading to increase in
quantity and fall in prices, in turn resulting in purchase by individuals with
increasingly lower valuations of the product, the upward-sloping curve becomes
steeper.
When more than 50% of the potential market has purchased the product,
the market begins maturing. The curve becomes less steep, as only those with
low valuations are left to purchase which is termed as late adopters.
The flattening at the top right in the curve shows that price stabilizes at
long-run marginal cost; the very last purchasers are those with the lowest
valuations of the product called as laggards. The market is saturated, as there
are no more potential consumers valuing it more highly than the price prevailing
at that point in time.
When the curve is steep, the duration of the diffusion is shorter. If the
product offers very high consumer benefits relative to price, the duration is

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typically short. Lesser valued or more expensive technologies tend to have longer
durations and flatter curves.

Self Assessment Questions

4. The four elements of diffusion are ______, ______, ______and ______.
5. ______ prevents management from perceiving the contribution an
employee can put in technology development process.
6. A technology typically diffuses through an economy over a period of time,
in an _________ pattern.

7.4 Technology Absorption

Technology can be obtained from the sources within or outside the country.
Once it is imported, it is required to be absorbed in accordance with the
requirements. Foreign technology may have been developed keeping in view
different parameters relating to scale of production, raw materials and
components, quality standards, costs, levels and types of production techniques,
maintenance requirements, social aspects including environmental and pollution
aspects and employment. It is common in many developing countries to import
technology as a package. These developing countries have developed R&D
capabilities to absorb and upgrade the imported technologies, and to achieve
technological self-reliance.
Technology absorption differs from country to country, and even from firm
to firm such as in India; absorption is generally considered as the capacity to
reproduce or manufacture products according to the know-how supplied by
the licensor of technology, without really understanding the know-why of the
technology.
The role of technology absorption in the implementation of a project is
shown in figure 7.2. It will be seen that technology absorption activity is taken up
only after a project is executed through acquired technology or when a company
diversifies or faces a threat from market forces to update its processes or
products. Figure 7.3 explains the process of know-why arising out of imported
know-how.

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Project
Formulation

Project
Execution

Unit 7

Prefeasibility Report
Technical Negotiations
Approval/Clearances with
Government
Foreign Collaboration Agencies
Funds from Financial Institutions
Land Acquisition
Clearances from state govt. and
other bodies for power

Technology Transfer
Design/Know-how, Experts Training
Use of Indian Consultants
Procurement of equipments,
components and training
Project Implementation

Technology
Adaptation

Trail runs
Debottlenecking
Production based on selective
imports of components
Adjust product/process to suit local
conditions

Technology
Absorption

Analyse and unpackage technology

Investigate product/process designs
and technology
Optimize technology for higher
quality and performance
Use Research Linkages

Figure 7.2 Project Implementation and Technology Absorption

Source: Compiled by author

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Know-Why
of

Product
Process
Material
Production Equipments
Systems

Requires

Unpackage
Technology

Formulate
Projects

Prototype/Pilot Scale
Development and Trails

Identify
Unknown
Elements

Set up Strong
R&D Group

Findings and
Recommendation

Investigate 'Why'
of Elements

Upgrade if
Required

Use Design Tools/Expertise

Seek Project Inputs of Research Labs/

Institutions/Experts

Figure 7.3 Know- Why of What and How

Source: Compiled by author

7.4.1 Benefits of Technology Absorption

Based on government and industry experiences, following are the benefits of
technology absorption exercises:

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Repeated collaborations for the same product/ process are avoided.

Acquisition of further technologies becomes selective.
Ability is developed to unpackage the technology.
Savings can be effected in foreign exchange due to indigenization /use of
indigenous alternatives.
Effective utilization is made of available indigenous research expertise
and facilities to achieve the desired results.
Know-why and technology upgradation capabilities are built up.
Exports are increased.
Technically competent groups of scientists and engineers trained in
technology absorption get matured and strengthened.
The base for technological self-reliance is enhanced.

7.4.2 Constraints in Technology Absorption

Some of the major constraints in absorption of technology are:
Choice and use of imported technology by most Indian industries have
not been at international levels. This is an important factor while establishing
scale-sensitive, high-technology industries.
The demand of products whose production is influenced by scale factors
of latest technologies is generally not very large in our country. Currently,
these are being met by a number of units of sub-optimal sizes as compared
to international levels. This constraint increases the gaps to be bridged
through technology absorption. Industry would not be in a position either
to invest similar R&D resources in comparison with international units, or
even to improve the products/processes. Expanding the existing units and
establishing new units with larger capacities tend to minimize this gap.
In general, industry has not given adequate attention to absorption of
technology. In such cases, the firms have usually approached the
collaborators once again for renewal of earlier agreements or for new
collaborations for improved or new products and processes. There are
instances where existing items made with marginal process or product
improvements have continued to be supplied even after extensions of
collaborations. In the absence of a competitive domestic market, or where
industrial users are dictated by equipment/products based on imported
technologies, the inherent tendency to supply the same product continues,

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till the users requirements change or substantial imports of a new product

takes place.

7.4.3 Issues Involved in the Management of Technology Absorption

The Indian industry has to concentrate on some issues in technology absorption
as follows:
Accelerated indigenization and improvement of raw materials/
components/ sub-systems through speedy R&D efforts with vendors/
ancillaries.
Basic investigations and projects in research, design and engineering,
encompassing process/ product design analysis/ optimization/
improvement, product designs for higher ranges/ new applications,
exports, process design and engineering for higher volumes and exports.
Analysis and improvement of designs and development of tailor-made
production equipment.
Demonstration of improved/higher range of products/ equipment of the users.
The technology absorption projects need to be organized or established
in two ways. The two ways are explained as follows:
o Individual unit basis.
o Collaborative or cooperative basis, i.e. club projects involving users,
manufacturers, national research laboratories or institutions. At
present, there is a need for stronger linkages in research and
development work between manufacturers and users and between
institutions/ national laboratories and industry.

7.4.4 Government Initiatives for Technology Absorption

Indian government, over the years has directed the industry to take necessary
steps to set up R&D units for upgradation and absorption of imported technology.
The Government has also directed the industry to submit annual returns for
technology implementation and absorption.
The Technology Absorption and Adaptation Scheme (TAAS)- The Technology
Absorption and Adaptation Scheme (TAAS) was initiated by the Government
(DSIR) as a pilot scheme during the seventh plan. TAAS aims at stimulating and
accelerating the efforts of Indian industry in technology absorption and
upgradation. About 30 public and state sector units have so far been partially
supported for undertaking identified RDDE (Research, Design, Development

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and Engineering) projects to absorb and upgrade specific elements in imported

technology. The support is for accelerated indigenization /import substitution/
know-why exercises/ product improvement and optimization. The projects are
overviewed by Evaluation Committees. Under the scheme, other initiatives such
as workshops, technology absorption/ profile studies of different states and
technology evaluation studies of critical sectors have been undertaken. All these
have encouraged the participation of industry, national institutions/laboratories
and Government in dealing with issues of technology absorption.
TAAS activities have resulted in stimulating and speeding up the R&D
work in absorption of technology. The scheme, therefore, is in a good position to
encompass larger areas, to demonstrate the beneficial effects of organized
and target-oriented absorption of technology projects. TAAS has brought out the
need for enhancing the activities to catalyse and assist the industry in technology
absorption. TAAS is expected to extend partial support to the following:
Core sector users in absorption and upgradation of products/equipment
from ancillaries /equipment manufacturers/vendors whose technologies
are based on foreign collaborations.
Cub or co-operative projects of interest to the sector, involving a group of
manufacturers, users, and national institutions, in identified areas of
technology gaps.
Industry-sponsored projects with national laboratories/institutions.
Projects of small and medium enterprises, in priority areas such as energy
saving, accelerated indigenization, efficiency and technology upgradation.
Skill utilization in technology absorption projects by hiring research experts
and NRI specialists as well as training in national laboratories/institutions/
international organizations for identified areas of absorption.

Self Assessment Questions

7. The _________ was initiated by the Government (DSIR) as a pilot scheme
during the Seventh Five-Year plan.
8. TAAS activities have resulted in stimulating and speeding up the R&D
work in absorption of technology. (True/False)
Activity 1
Give two examples of technology absorption in India.

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7.5 Technology Life Cycle

Technology and its implications are an ongoing process. There are typically four
stages of evolution in the life cycle of a technology. Figure 7.4 depicts the different
characteristics of these stages:
Technology functional
capabilities
Rate of process
innovations
Rate of product
innovations
1 2

Figure 7.4 Technology Life Cycle

Source: Compiled by Author

1. Cutting-edge: This stage represents the origin of a fresh product, material

or process resulting from R&D activities. In R&D laboratories, new ideas
are generated depending on gaining needs and knowledge factors.
Depending on the resource allocation and also the change element, the
time taken in the innovation stage as well as in the subsequent stages
varies widely.
2. State-of-the-Art: In this stage, cutting-edge technology is employed to
fulfill a particular customer need. It is important to note that the customer
base for this kind of latest technology is small, but discerning. Therefore,
it is best to let only technical specialists handle the marketing of this kind
of technology. Since this is only the nascent stage, a lot of functions are
still in their initial phases. However, core functions like engineering,
manufacturing, finance and administration are formally operational.
Important, but non-core functions are offered outsourced to consultants
or agencies. Since there is still the stamp of innovation on the product,
there is a great deal of product diversity. Production processes are still far
from being standardized, so, it is easier for state-of-the- art technology to
respond to the wide-ranging market needs, even though in an ineffective
and inefficient manner.
3. Advanced: Once the technological attributes are standardized, the
technology undergoes fast-paced market expansion. But gradually, the
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less discerning customer also joins the broadening customer base. This
customer wants the advantages of the newest technology but does not
want to develop his own technical expertise to appreciate the technology.
At this stage, professional marketing of the technology becomes a
necessity, since the exclusivity of one or few producers is negated and
many players jump into the fray. This situation brings in a complete market
revamp, customer segmentation and more standardization. If a company
manages to survive this upheaval, it indicates the companys solidity and
efficiency. It is during this stage only that the company may automate
some parts of its process, specify roles based on expertise, or conversely,
go through organizational restructuring. Many companies also face
financial and administrative crises at this time.
4. Mainstream/Mature: Once the technology comes to this stage, there is
little scope left for more product innovations and most firms concentrate
only on improving existing product technology. However, eventually that
scope is also exhausted because the process is near-perfect by now. As
a result, product differentiation becomes almost impossible. Now
companies start working on strategies to make production processes more
economical and efficient. This is done usually through outsourcing to thirdworld nations. Once this area has been exhausted as well and does not
offer an edge over competition, the game becomes centered on quality of
customer service. For this stage, professionally qualified and experienced
managers are better than entrepreneurs with no little capital backing or
experience. By this time, the organization has gone beyond non-standard,
play-by-ear method of operation and requires considerably standardized
structures, communications and systems.
5. Decline: In this stage, there is little or no scope for improving the technology
any further. Moreover, even the smallest improvement costs a lot.
Eventually the technology is replaced by a new generation technology.
However, the new technology will not wipe out the older technology
immediately and abruptly. Also, the stages of the TLC are not so distinctly
visible either and seem to happen seamlessly and gradually rather than
with abrupt distinctions.

Self Assessment Questions

9. The five stages of technology life cycle are _______, _______, _______,
_______and _______.
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10. _______ stage represents the birth of a new product, material or process
resulting from R&D activities.
Activity 2
Identify the technology life cycle of any two products of a company and
compare them.

7.6 Summary
Let us recapitulate the important concepts discussed in this unit:
Technology adoption is the process of successful implementation of
technology and taking full control of the technology.
Before adopting the technology, we need to plan the process of adopting.
Planning for the implementation of the new technology should be thorough
and should encompass a relatively long time horizon to assure the stability
of the new system.
Technology diffusion includes the process of adopting new products in
the market place. The barriers indicate the volumes of diffusion.
Diffusion plays a pivotal role in helping the adopters to fully take advantage
of an innovation and to modify that innovation. It consists of four key
elements: Innovation, Communication channels, Time, and Social system.
Technology absorption plays an important role in technology acquisition
when we acquire technology from outside and within the company also.
We observe that improved productivity and quality, as well as the reduced
costs are leading to high efficiency in industrial operations
Technology and its implication is an ongoing process; it is more convenient
to consider it as a series of discrete stages for the purpose of better
understanding and analysis. A technology typically evolves through the
stages in its life cycle.

7.7 Glossary
Diffusion: The term diffusion refers to the spread of new idea which can
be product, technology, service or method from the time of its invention to
creation of its ultimate adoption by an increasing number of users in different
circumstances.
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Absorption: To acquire the technology, it can be obtained from the sources

within or outside the country, once it is imported, it is required to be
absorbed accordance with the requirements.
Technology adoption: Successful implementation of technology and
deriving the full potential of the technology is referred to as technology
adoption.
Marginal cost: It is the change in total cost that comes from making or
producing one additional item. The purpose of analysing marginal cost is
to determine at what point an organization can achieve economies of
scale. The calculation is most often used among manufacturers as a
means of isolating an optimum production level.

7.8 Terminal Questions

1. What is technology adoption? Explain the steps of technology adopting plan.
2. Discuss technology diffusion. What is the importance of technology
diffusion?
3. Discuss the different perspectives of technology diffusion.
4. Write a note on technology diffusion curve.
5. What is technology absorption? Discuss its benefits constraints.
6. What are the government initiatives for technology absorption?
7. Write a short note on technology life cycle.

7.9 Answers
Self Assessment Questions
1. Adaptation
2. Technology adoption
3. True
4. Innovation, communication channels, time, and social system
5. Traditional Approach of Diffusion
6. S-shaped
7. Technology Absorption and Adaptation Scheme (TAAS)
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8. True
9. Cutting edge, state of art, advanced, mainstream/mature, decline
10. Cutting edge

Terminal Questions
1. Technology adoption means the successful implementation of technology,
and deriving the full potential of the technology. For more details, refer
section 7.2.
2. The term diffusion refers to the spread of new idea which can be product,
technology, service or method from the time of its invention to creation of
its ultimate adoption by an increasing number of users in different
circumstances. For more details, refer section 7.3.
3. Technology diffusion is an essential component of technological progress
and thus an important source of economic growth. A major channel through
which technology diffusion occurs is investment in technology-embodied
machinery and equipment. For more details, refer section 7.3.2.
4. In 1997, Greenwood and Yorukoglu studied that a technology diffuses
through an economy over a period of time in an S-shaped pattern. For
more details, refer section 7.3.3.
5. To acquire the technology, it can be obtained from the sources within or
outside the country, once it is imported, it is required to be absorbed
accordance with the requirements. For more details, refer section 7.4.
6. Indian government, over the years has directed the industry to take
necessary steps to set up R&D units for upgradation and absorption of
imported technology. For more details refer section 7.4.4.
7. Technology and its implications are an ongoing process. For more details,
refer section 7.5.

7.10 Case Study

Innovative Insight
It was a passing thought, while watching a pot on an earthen oven that was
etched indelibly in Jyothi Ravishankars mind. A mother of two children, Jyothi
pondered over it for quite some time. The idea was eventually translated
into an innovation which got her an award.
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Jyothi won the Best Innovation Award, instituted by Ahmedabad-based

National Innovation Foundation (NIF) and a personal note of commendation
from President A. P. J. Abdul Kalam.
The innovation, to be patented by NIF, encompasses an inverted U shaped
hollow steel oven and a drum with two openings on extreme ends. The
lower opening in the drum is connected to the lower opening of the oven
with the help of a pipe and the upper opening of the drum with the upper
opening of the oven. The drum is filled with water and a pot full of raw rice is
placed on the oven. Once the firewood stacked inside the oven is lit, the
innovation making use of simple principles of physics ensures that besides
cooked rice there is also a drum full of boiling water. Jyothi, who has sold
about 30 pieces of her product to neighbors and relatives, says she found
that about 70 percent of heat was lost in a traditional earthen oven. She
could devise the product after mulling over how to utilize the lost energy.
In school we were told that cold water which has a heavy density settles at
the bottom, she explains while mopping her hand dry after having washed
the masala paste prepared in a grinding stone. Jyothi, a graduate from
SDM Law College, says the innovation using this principle ensures a
constant cycle of cold water from the drum to the oven and hot water from
the oven to the drum. Displaying a model at her house in Amdal village near
Madanthyar, 60 km. from Mangalore, she says the government should
promote her product, priced `1600, in all villages. It saves fuel meant to
boil water and also ensures a healthy cooking, she says.
Now the role of Government comes into play for technology diffusion and
technology absorption. It is necessary to go for technology diffusion, since
there was a need for spreading the information.
She has plans to improvise on the product by making it smokeless. Having
had a tough time with welders to get the steel hollow oven in the right frame,
she now longs for a workshop where she and her husband Ravishankar
could work on their innovation and distribute the products to needy villagers.
Discussion Questions
1. What are the factors that induce people to innovate on existing
technologies?
2. Keeping in mind the above case, comment how can the government
play an important role n technology diffusion and absorption?
Source: Housewife cooks an idea to save energy, The New Indian Express.
(Retrieved on 8 March 2005)
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Unit 7

References
A. Rao, Technology Absorption: An Overview, Department of Scientific
and Industrial Research, Ministry of Science and Technology, Government
of India.
Dr. Prakash Sai L, Management Science II Lecture Notes, Indian Institute
of Technology -Madras (IIT-Madras).
Hee Jun Choi, Technology Transfer Issues and a New Technology Transfer
Model, The Journal of Technology Studies.
E-References
http://www.buzzle.com/articles/why-is-technology-so-important-today.html
(Retrieved on 10th March 2013)
http://www.techmotivator.iitm.ac.in/TechCase.htm (Retrieved on 10th
March 2013)
http://www.articleonlinedirectory.com/128143/the-negative-effects-ofadvancing-technology-on-society.html (Retrieved on 10th March 2013)

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