AS ND S: Unit 2 Pects A IS UES
AS ND S: Unit 2 Pects A IS UES
AS ND S: Unit 2 Pects A IS UES
Objectives
After studying this unit, you will be able to :
• understand the need and importance of Technological Change, Technology Life
Cycles and Technological Transformation;
• know what is appropriate technology and the criterion for its selection;
• understand the need and role of technology policies and policy instruments;
• analyse technology development options and strategies available to an
organisation;
• appreciate the importance of linkage between technology issues and socio-
economic planning process; and
• know about some of the considerations that govern the technology development
and management.
Structure
2.1 Introduction
2.2 Technological Change
2.3 Technology Life Cycle
2.4 Diffusion and Growth of Technologies
2.5 Technological Transformation
2.6 Technological Alternatives
2.7 Appropriate Technology
2.8 Technology Policy and Policy Instruments
2.9 Technology Planning
2.10 Technology Development Options and Strategies
2.11 Technology and Socio-economic Planning
2.12 Summary
2.13 Key Words
2.14 Self-assessment Questions
2.15 Further Readings
2.1 INTRODUCTION
In the first unit we discussed the concepts and definitions related to Technology and
Technology Management at national and enterprise levels. In this unit we will
discuss some of the issues and aspects concerned with technology. These aspects
include Technological Change, Technology Life Chain, Diffusion and Growth of
Technology, Technological Transformation and Technology Alternatives,
Appropriate Technology, Technology Policy and Policy Instruments, Planning,
Development Options and Strategies, etc. There are many more issues, some of
which have been discussed in other units at relevant places. As mentioned earlier in
the first unit, Technology and Technology Management are complex subjects and
have several dimensions and implications. While it is difficult to cover all of these
dimensions or implications, we have attempted to cover some basic issues which
should pro.vide a fairly good understanding of the subject and enable an executive to
deal with matters concerned with technology management more effectively.
There is a broad spectrum of factors which can have an impact on the process of
substitution and diffusion. These can be broadly classified into (a) factors affecting
the demand for a technology; and (b) factors affecting the supply of a technology.
We shall discuss implications of technological change in greater depth in the next
unit.
Syndication stage: This stage represents the demonstration (pilot production) and
commercialisation of a new technology (product, material or process) with potential
for immediate utilisation. Many innovations are shelved in R&D laboratories. Only a
very smal\ percentage of these are commercialised .. Commercialisation of research
outcomes depends on technical as wel\ as non-technical (mostly economic) factors.
Diffusion stage: This represents the market penetration of a new technology through
acceptance of the innovation by potential users of the technology. But supply and
demand side factors jointly influence the rate of diffusion.
Substitution stage: This last stage represents the decline in the use and eventual
extension of a technology due to replacement by another technology. Many technical
and non-technical factors influence the rate of substitution. The time taken in the
substitution stage depends on the market dynamics.
There is another way of looking at the technology life from the prespective of growth,
and diffusion.
Tcchology
"1'3"
., / Technology
"Tt"
.....-:: A
,."/
____ TIME!
---I~~ Time
, ~ctivity 1- "
'bi'scuss the "Technology Life Chain" of anyone of the processes or products
concerned with your organisation or any other you know of, indicating the stage of
the technology at which the products or processes are located .•"
" .
21
••••••••••••• e .••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••
T«hnology: Issues and
ImpUcations 2.5 TECHNOLOGICAL TRANSIFORMATION ! 1
-~ l Collecting ... .
• Extracting Very
Low
v;'" • Mining high
• Farming
-•..
~
'"
-
- Refining
• Purifying
• Preserving
•••••
High High
Vl
• Metallurgy
-
5
~
, Processing
• Chemical and
electrical
t-.
Very
high
Very
very
.high
Vl
conversion
-
>
l
u
- Manufacturing
• Mechanical
conversion
!iigh High
and fabrication
.
Packaging. 1--0-.
>u Very
•..:
Vl
• Assembling
• Containerizing
,High
high
( Market )
I'I&UR1.3 : 'v. ,Iales or lechnoloeical Iransrormallon In Ih. prodUClionor loods
, Inappropriate because
of changed surroundings
Same place
different time ) and/or objectives
Inappropriate owing to
different surroundings
Different time
and place
\ J and/or objectives
In appropriate owing
Appropriate with to different
respect to surroundings surrounding and/or
and objectives objectives
Still appropriate
Place and time for similar
. of original same time
surroundings and
application different place
objectives .
The surroundings differ not only from place to place but also over time. With the
passage of time and application of technologies almost all elements of the
surroundings change for better or worse. Although in general two surroundings are
unlikely to be identical, for any particular technology many apparently different
surroundings may in fact be considered similar.
", ',.
ill.' •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• t., .\, •••••••••••• t,O
..............................................................................................
. '
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?A
Aspects and Issues
2.8 TECHNOLOGY POLICY AND POLICY
INSTRUMENTS
The need for technology policy springs from an explicit commitment to a national
goal and the acceptance of technology as an important strategic variable in the
development process. Technology policy formulation ought to naturally follow the
establishment of a development vision or perspective plan. This plan is characterized,
among others, by a desired mix of the goods to be produced and services to be
\
provided in the country in the coming one or two decades. The formulation of a
technology policy begins with. the establishment of a vision for the country and the
corresponding scenario of the mix of goods and services to be produced and
provided. The policy framework has to be broad and flexible enough, taking into
account the dynamics of change.
The principal aims and objectives of a technology policy are to acquire the
technology and essential technological capabilities for the production of goods and
services as envisaged or set forth in the vision for the country. The policy statement
includes the expression of a desire to develop a national capacity for autonomous
decision making in technological matters. The policy document includes the
principles on which the envisaged technological development is to be based. Such
. principles include, among others, considerations of preservation and improvement of
environment, satisfaction of basic needs, promotion of self-reliance, creating mass
involvement, etc.
Policy Instruments
Policy instruments are the links between the expressed purpose and the results that
are sought in practice. There are both direct and indirect policy instruments. The
direct ones refer explicitly to technology functions and activities. The indirect ones,
although primarily referring to policies, functions or activities other than technology,
have an important indirect effect on S&T activities. A policy instrument is a complex
entity and may directly or indirectly affect activities or influence the results of
resource deployment. Different policy instruments are listed below:
• Policy instruments to build up S&T infrastructure.
• Policy instruments to regulate technology import.
• Policy instruments to define the pattern of demand for technology.
• Policy instruments to promote the performance of S&T activities in the
enterprises.
• Policy instruments to support the performance of S&T activities.
Techllll)logy: Issues and Technology policy influences the activities of different segments, agencies or
Implications departments of the government and has a direct bearing on various sectors of the
economy. The formulation of a technology policy is further complicated by the
necessity of its integration with the national development policy. The policy
formulation mechanism would vary from country to country depending on its social
values, political system and prevailing economic conditions. Technology policy
formulation largely depends on the political will of the government to take the
initiative. The govenment may ask an advisory body / committee/ ministry to draft an
S&T policy which may lead to an S&T Plan for integration into a national socio-
economic plan. In India the Science Advisory Council to the Prime Minister and the
Cabinet are the S&T policy making bodies. The policies are implemented through
the various departments in the Ministry of Science & Technology and other S&T
and Technical Departments.
Activity 4
Attempt as suggested below:
i) First, gather the information regarding recent changes in the industrial policy
which have a bearing on the flow of technology into India.
ii) Then, arrange a meeting with a knowledgeable person of your organisation and
discuss with him how these changes would affect your organisation, in the short
and the long run.
Ffaure 1.5 : Chanpns In the structure of the economy with technoloalcal advancement
generation and utilisation of technologies have become imperative. There are no Aspects and Issues
unified technology planning procec. .es; however, the objectives of technology plans
are usually expressed as under:
a) Importation, adaptation and modification 'of technologies produced elsewhere.
b) Advancement of technology development capability in the country.
c) Creation of a climate for the acceptance of the need for technological change.
Common procedures followed include macro level planning, micro level planning
and project level planning. Several problems are normally experienced in the
procedure. At the national level there is a dominant concern regarding the
unemployment aspects of technological change. It is important to realise that all
processes of modernisation and change result in some structural unemployment. The
employment situation changes continuously with the advancement of technology
(Figure 2.5). Therefore, it is essential to explore opportunities for achieving
structural changes and expansion of the base of production facilities.
Some of the important points for effective technology planning at the national level
are as under:
a) It is essential that the planning for technology should be kept as a dynamic
process.
b) Shift from import substitution of consumer goods to capital goods and then
import substitution of technology itself which is a difficult one and requires
careful planning.
c) The dimension of time is particularly critical for technology development;
development of technological capabilities requires a long gestation period.
d) In the early stages of development, protection of local technological efforts is
essential, but this should gradually be withdrawn.
e) Fostering competition and market orientation is very important for technology
development.
f) The will to solve one's own political and administrative problems and financial
commitments at the highest nauonal level is a necessary precondition for the
preparation of any useful technology plan.
The following general principles with regard to the planning for development of,
indigenous technological capabilities may be kept in view: !
, Technology: Issues and i) It is important to be selective in self-development of technology. Emphasis
ImplicatiQJls should be given to total integration of all activities in the technology. production
chain to achieve self-reliance.
ii) In selecting areas for development, a country can be inward-looking in some
areas and outward-looking in sOl"e other areas.
iii) Import substitution can only be a temporary strategy.
iv) In the technology production chain, a number of activities involving basic and
applied research can be undertaken, but it is important to .be able to discard
some of the non-productive projects and concentrate, from time to time, upon
those which have high commercial potential.
v) Technology development is best achieved through collective effort. Individuality,
which tends to aim at being unique rather than practical, should be minimised.
National Soclo-economic
development goals
!
~--'I
Technology Technological Technolog,; L
assessment needs
-
forecasting
i
I I
General strategy for technology
development
.
RandD
"\ , BuUd·up
r RandD
C
technological
efforts
effori.: c,apabWties
-,.-
• Improve
• Select
1\
traditional
• Digest /
innovative technologies
• Adapt ' Manpower
dlmate • Produce
• Improve
Imported Dew
technologies technologies
Support
Instihitions facUlties
I I I I
Englneerina Infol',atlon Service 'Marketing
system .ystelm .ystems System
Internal Foreign
technological technological
sources sources
Regulation
and balance of
technology Socio-economic
considerations
supply
Technological
considerations
Regulation and
National
balance of
development
technology
planning
demand
Internal Foreign
technological technological
market market
2.12 SUMMARY
Technology and its development is vital to the economic growth of a nation and its
enterprises. Therefore, it is important to understand the various aspects related to
technology. The aspects discussed in this unit include: technology life chain;
diffusion and growth of technology, appropriate technology, technology policy and
policy -instruments, technology planning, and development options and strategies.
Appropriate technology is a function of requirements at a given point of time in a
given environment, and several options are available to an enterprise to acquire such
technologies which would call for a strategy at corporate level. Technology planning
. and its linkage with social system is also important at national as well as enterprise
level. The other aspects include technology financing and financial returns,
technology audit, technology assessment and forecasting, technology information
systems, technology transfermechanisms, technology intelligence, intellectual
property systems, and so on. Many of these aspects have been discussed in detail in
other units of this course. Technology 'management involves the knowledge and
appreciation of all these aspects at the enterprise level, to remain competitive and to
achieve sustained growth.
Tecbnolcgteal Needs and Strategies: Technological needs are derived from national
'socio-economic goals. Technology strategy is determined by considering the
identified needs with potential technological developments and an assessment of
available technologies consistent with country's capabilities or resources.
Choi, H.S. (ed.), 1984, Industrial Research in the Less Developed Countries, UN
ESCAP Regional Centre for Technology Transfer, Bangalore.
Human Resource Development: Its Technological Dimensions, 1986,
UN ESCAP Report.
Sharif, Nawaz, 1983, Management of Technology Transfer and Development. UN
ESCAP Regional Centre for Technology Transfer.
Sharif, M.N., 1986, Technology Policy Formulation and Planning: A reference
manual, Asian and Pacific Centre for Transfer of Technology.
Technology for Development, 1984, Study report by the ESCAP Secretanai for the
40th Session of the Commission.