Technological Environment in India
Technological Environment in India
In India
What is Technology?
Resources crunch
Commitment to excellence
High expectations of
customers
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
•Today’s 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