TECHNOLOGICAL ENVIRONMENT

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.

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.

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 of production. It needs to be continually improved.

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.

Research and development in INDIA

In currently spends about 0.8% of GDP on research and development and the science and technology policy(2003)has rise 2.0% in the year 2007. In India there are several incentives provided. 1.Income tax relief on RD expenditure. 2.Weighted tax reduction for sponsored research programme. 3 Direct financial support to R and D project.

INDIAN TECHNOLOGICAL ENVIRONMENT

Institutional environment
o ICSR-Indian Council of Scientific Research. o DST-Department of Scientific and Technology. o ICMR-Indian Council for Medical Research.

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 machinery developed technology.

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.

 A risk of the product being duplicated or closed imitated

Constraints of technological growth

Pollution of biosphere. Traditional social institutions and values. Industrial resource base.

 Pollution:
o Pollution is an unavailable consequence of industrial production. Smoke, smell and dust are generated by industrial establishments. o Harmful 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 o There is limit to the availability of these and this limitation checks the advancement of technology.

 Social Institutions
o A third factor limiting technology is social values and institutions that may be inconsistent with the fact productive potential that is present in technology. o Many societies, perhaps most of those that adopt modern technology,, encounters similar less chamatic problems in arriving at a decision between their traditional social institutions and the new trends of technological development.

Sources of technological dynamics

Meaning
Technological change may be
INTERNAL or EXTERNAL

Customer needs/expectations
Demand conditions

Supplier's forces

Social forces

Innovative dynamics of the company

substitutes

Competitive dynamics

Goverent policy

Innovations by research organizations

Factors
1)Innovative drive policy.
Technology as a driving force of competitiveness and development of a company. Great important to R & D. Eg : Ranbaxy

2)Customer needs.
Customer is the king. We must consider their needs expectations

3)Demand conditions.
Customer demand influence the technology. Customer Demand on size, colour, quality, price.

The world must be in a fast growing trend.

4)Suppliers offerings
Technological changes are encouraged by suppliers of a company. Like capital goods and other technology suppliers. Eg: construction of engineering firms.

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 technological backwardness. Eg: India

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.

7)Social forces.
Environmental pollution or other ecological problems. Demand or preference for eco-friendly products. Eg: Japan

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

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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