Technological Environment

What is Technology?
Systematic application of scientific or other organized knowledge to practical tasks

The important feature of technology is its change and then more change.
Technological impacts are wide spread, reaching far beyond the immediate point of technological impact.

Impact of technology

1. Increased Productivity
The most fundamental effect of technology is greater productivity in terms of both quality and quantity.

As a result of productivity, prices of some products decline, which spreads the beneficial economic effects of technology throughout the whole social system.

2. need to spend on R&D

R&D assumes considerable relevance in technological advances.

To gain competitive edge and market share in the global market, technological advancement is necessary. To achieve technological advancement company has to spend on the R&D by introducing new innovations.

3. Jobs tend to become More intellectual

With the advent of technology, jobs tend to become more intellectual or upgraded.

A job handled by an illiterate and unskilled workers, requires services of an expert, educated and competent engineers. Introduction of new technology dislocates some workers unless they are well-equipped to work on new machines.

4. Increased Regulation and Stiff Opposition

A by- product of technological advancement is the ever-increasing regulation on business by the govt. and stiff opposition from the public. The govt. has the powers to investigate and ban products that are directly harmful or hurt the sentiments of society.

5. Demand for Capital

Todays technology necessitates investment of money on acquiring or discovering of new ideas and their adoption; education, training and maintaining of the managers and several other related areas. Business organizations should raise huge fund, to adopt new technological advancements.

6. Business Boundaries Redefined

Technological change is one of the important factors giving rise to product substitution and product differentiation. For multi product companies technological change may have multiple impacts.

Helps in widening the market with in the country and outside the country.

7. Social Change
There is the change in social life which results from a change in a technological process.

Changes the patterns of social life.

Status differences are likely to be created by technological advancement in developing countries.

8. System Complexity
Technology has resulted in system complexity. Modern machines work better and faster, but of they fail, they need services of experts to repair. Technological system is interdependent system. Failure of any other variables create system complexity.

9. High Expectations of Consumers

Technology has contributed to the emergence of new society. Now consumers want more of many things than more of some things. New varieties of products, superior quality, free from pollution, more safe and more comfortable products are to be produced and supplied to the new sections of consumers.

10. Resistance to Change

New technology poses new problems which may not be to the liking of the organizational employees.

Fear of loosing job, increased work load, makes people to resist the technological change.

Research and Development in India

Though India has an elaborate science and technological policy, the expenditure on R&D is typically low. It encourages R&D activities through public institutional infrastructure and fiscal concessions.

India currently spends about 0.8% of GDP on R&D , science and technological policy.
Target to rise this expenditure to 2% by the year 2007.

Research and Development in India

In India there are more than 500 science and 1220 in house research and development laboratories.

There is also the Department of Science and Technology, an administrative wing of the Govt. to coordinate the activities of all research and technical activities in the country.
The country has state sponsored institutional arrangement for the development of science and technology in diverse areas of the economy. They are

Research and Development in India

Indian council of scientific research (ICSR) Department of science and technology (DST) Indian council of medical research (ICMR) Indian space research organization (ISRO)

Scheme on drugs and pharmaceuticals research

Technology policy
Technology must suit local needs and to make an impact on the lives of ordinary citizens.

It must give importance to even small improvements which could make better and more cost effective uses of existing materials and the methods of work.

Aims of Technology Policy

The basic objectives of the technology policy will be the development of indigenous technology and adaptation of imported technology appropriate to national priorities and resources. Other aims are

Attain technological competence and self-reliance .

Sustainable and equitable development. Maintenance of national security. To enhance international competitiveness of Indian industries.

Aims of Technology Policy

To use traditional skills and capabilities and making them commercially competitive.

Ensure maximum developments with minimum capital outlay.

To develop technologies which are internationally competitive, particularly those with export potential. reduce demands on energy, particularly energy from non-renewable sources. To reduce waste materials and make full utilization of by products.

Strengthening the Technology Base

Special attention given to promotion and strengthening of the technology base in newly emerging frontier areas such as information and material sciences and bio-technology etc. Skills and recognition. skilled workers will be accorded

The quality and efficiency of the technology generation and delivery system will be continuously monitored and upgraded.

Strengthening the Technology Base

Technologies relevant to the cottage, village and small industries sector will be upgraded.

Measures will be devised to avoid wastage and to optimal use of energy.

Some Specific Areas

In technology development, special emphasis will be focused on-

Agriculture including dry-land farming

Low cost housing Development and use of renewable conventional sources of energy. Industrial development and non-

Optimum use of water resources.

Indigenous technology Development

fullest support will be given to the development of indigenous technology to achieve technological selfreliance and reduce the dependence on foreign inputs. Strengthening and diversifying the domestic technology to reduce imports and to expand exports.

Suitable fiscal mechanism will be established to facilitate investments on indigenous technology.

existing design engneering will be strengthened.

Mix of Indigenous and Imported Technology

technology policy will be directed towards adopting imported technology in few areas.

In the acquisition of technology, consideration will be given to the choice and sources of technology, costs and related conditions. A National Registry on foreign collaboration will be developed to provide analytical inputs at various stages of technological acquisition.

Technology Policy 2003

Objectives Advancing scientific temper for a progressive and
enlightened society. Strengthening, enabling technology developments. mechanisms that relate

Providing functional autonomy and freedom at all academic and R&D institutions.

Technology Policy 2003

Promoting empowerment of women to all science and technological activities.

Accomplishing national strategy and security related objectives using the latest technology.

Strategic Point
Strengthening measures to increase the rate of generation of high quality skilled technical manpower at various levels. Establishing new funding mechanisms for promoting basic science research.

Evolving mechanism for making S&T personnel an integral part of planning.

Strategic Point
Making arrangements and creating facilities for developing indigenous knowledge for wealth and employment generation. strengthening institutions. S&T infrastructure in academic

Policy decided to spend 0.8% on R&D and science and technology related activities.
decided to increase this amount to 2% by 2007.