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Understanding Technology and Its Relationship With Wealth of Nations
Understanding Technology and Its Relationship With Wealth of Nations
Understanding Technology and Its Relationship With Wealth of Nations
TECHNOLOGY MANAGEMENT
What is Technology?
If we can master the use of technology, it can be the key to a prosperous society for all human
beings – including the poorest of the poor
Most of the poor countries have rich natural resources, but have basic problems of:
Large population base, which is increasing rapidly
Technological base is very small and in effective
Natural resource base is being depleted due to inefficient use and indiscriminate export
To master the use of technology for development, it is essential to understand the basic
concepts of technology and Technology management
We are living in a technological world, which can be verified by observing the ways and
means of satisfying ‘human needs’ in various societies
Characteristics of Technology
Technology is generally a combination of hardware and software with relative proportions varying
from one extreme to the other
Hardware is any physical product, component or means. Software is the know-how, technique or procedure.
Hardware technology can be of two types:
a)the end use product type such as automobiles, computers, Software technology can also be of two types:
TV, CD players and
b)the production tool type such as instruments, equipments a)the know-how type technology such as processes,
and machinery, example- Drill machine, soldering machine, techniques, methods and
CRO, etc. b)know-why type technology such as knowledge, skills and
experience.
Technology is neither a product nor a process. It is a means for the survival, order and
progress of the human world. Technology does not exist in isolation. It exists in human
surroundings. Every technology when applied causes some alterations in its human surroundings.
Most of these alterations have been beneficial to the mankind. However there are some harmful
effects as well
Therefore while determining strategies for technological advancements, one must adopt an
optimum approach of maximizing the positive or beneficial effects while at the same time
minimizing the negative effects of technology
For example: atomic energy, chemical weapons, deforestation, ecological balance, total
automation, artificial intelligence, pollution, mortality reduction, etc
The Technology Defined
There are many definitions given by different authors and institutions according to their view
point based on considerations at different levels of inception, development, innovation, usage,
adoption, adaptation, modification and internal and external transfer
Few of the important ones are as under:
Technology is any tool or technique, any product or any physical equipment or method of
doing or making by which human capability is extended. – Schon (1967)
Technology (Is The) skills, knowledge and procedures for making, using and doing useful
things – Merril (1968)
Technology is the means or capacity to perform a particular activity. – Gruber & Marquis
(1969)
Technology or a technological resource may be defined as any hardware device
equipment or system, scientific knowledge, engineering design or process; special
laboratory or test facility or a specially trained person. – US General Accounting Office
(1972)
The Technology Defined (cont…)
Technology is the production and use of artifacts. Artifacts are materials altered through
human agency for human uses. – Feiblemen (1982)
Technology is the systematic application of knowledge to meet the needs and desires of
man, including its embodiments in machines, tools, products, processes and software (i.e.
the organization and management of doing things) and including the possession of such
knowledge by skilled labour, professionals, managers and libraries. – Wells (1974)
Technology refers to different types of knowledge, which may be embodied in the form of
machinery or equipment or in the form of information (like designs or specifications) or
in the form of know how (like technical and managerial skills)
All the definitions above, implies that technology is associated with two main
aspects:
Extension of human capability
Human uses
Technology is the systematic application of knowledge to meet the needs and
desires of man including its embodiments in machines, products, processes and
software
Technology and Science
(Nature is the totality of the essential qualities of the experienceable phenomenon of the
universe. )
Some significant technological developments during the last two centuries in selected areas
Transport and
Years Food and Agriculture Health and General
Communication
Some significant technological developments during the last two centuries in selected areas
Transport and
Years Food and Agriculture Health and General
Communication
Dehydration irradiation, Steam and gas turbine Antibiotics and
and vacuum contraceptives
High speed and high
Packaging of food payload ships Automatic reactors
1925 – 1950
Hi-Breed plants and Passenger aircrafts Digital computers
intensive farm
mechanization
Supersonic jets Transistors
Supersonic passenger
Non-conventional food Advances in bio-
aircrafts
1975 - items (single cell protein engineering
technology)
Fibre-optical Tele-Photo Artificial organs
communication
Specific
Invention Innovation Speed of Change
Technology
Aspirin 1853 1899 46
Specific
Invention Innovation Speed of Change
Technology
Helicopter 1907 1938 31
Black and White
1907 1936 29
Television
Color Photography 1907 1936 29
Color Television 1925 1953 28
Nylon 1927 1938 11
Penicillin 1929 1942 13
Jet Aircraft 1930 1942 12
Polaroid Photo 1937 1948 11
Xerography 1937 1950 13
Technology is:
The most important resource for any nation
Key to the competitiveness of business and economic growth of nations
The traditional concept of assessing the wealth of a nation was based on:
Availability of Gold, Silver, Diamonds, and natural resources including precious minerals
such as Petroleum, cobalt, platinum, manganese, nickel etc.
In the industrialized era, the rich endowment of natural and mineral resources and good
crop, lands or agricultural prosperity are although critical for a nation’s economic
development, but do not help in running the factories or industries to achieve self reliance
Result: Acceptance of the fact that GNP is the real measure of national wealth (Note: GNP is the
total output of goods and services)
Need of Technology (cont…)
Through technological innovation, the firm plans, implements, controls and evaluates
technical changes, brings new opportunities for enhancing the firm’s competitiveness and
growth
USA, UK and other western countries became rich because of technological innovation in
several fields such as Manufacturing, Power, Transport, energy, telecommunication,
computers, space, etc. The benefits generated from technology in such industries such as
telephones, automobiles, chemical, computers, telecom, etc. financed rapid growth and job
creation
Studies have indicated that increase in per capita output is attributed to “technical progress”.
Capital and labor inputs much less
Technology
Forecasting
Technology
generation and
development
Technology
transfer
Technology
absorption
Technology
evaluation and
assessment
Technology
diffusion
Why a business manager need to study Technology
management?
In today’s technology oriented globalised business environment, it has become most relevant
that a manager must understand the nuances of technology management along with
international business
For rapid economic development, a country needs to create greater awareness about the role
of technology and internationalization of business i.e. a culture of outward looking
The technology management has not been understood because of the fact that the topic
bridges two very different worlds.
The Technical and Business Worlds
One is a world of matter and other a world of money and both run on different laws i.e. laws
of nature and laws of economy
In the past business schools mostly ignored the business functions based on laws of nature i.e.
business functions of research and engineering
The business schools assumed that the engineering colleges would take care of this. But
they covered only on the technical side and not on the business side. Engineering colleges
did not teach their students the laws of economy
TECHNOLOGY MANAGEMENT
What is Wealth
Wealth is the abundance of valuable resources or material possessions or the control of such assets.
An individual, community, region or country that possesses an abundance of such possessions or
resources is known as wealthy
Types of Wealth:
Wealth is not limited to increase in money. There are different types of wealth
How Technology Helps in Wealth Creation
• Computers and the Internet technology have revolutionized the field of education.
• The importance of technology in schools cannot be ignored. In fact, with the onset of
Technology to computers in education, it has become easier for the teachers to render knowledge and for
the MAX the students to grasp it.
• The computer technology is used to add a fun-element to education. And it goes without
saying that the Internet has endowed education with interactivity
• Habitat loss or alteration through land clearance (e.g. as a consequence of raw material
demand or development of a site
•The chemical contamination of the environment through the release of wastes that have a
Technology
direct toxic effect on flora and fauna (e.g. pesticides)
for creating
• By consuming a resource at a rate greater than it is replenished or greater than the rate at
Environmenta
which it may be continually supplied over the lifetime of the technology
l wealth
• By contaminating a resource that is either used by the technology operators or by other
parties, but which has no direct link to the technology (e.g. contamination of groundwater
by an industrial manufacturing process)
How Technology Helps in Wealth Creation
• Knowledge assets are viewed as factors of production that may be more important
than traditional resources of capital, labor and land.
• Converging technologies and rapid innovations can transform markets overnight
• Information and the technical advice is easily available through internet, web chat
etc.
Technology
• Knowledge transfers from different part of world also helps in improving the
for increasing
quality of life
the wealth of
• Enterprises are realizing how important it is to "know what they know" and be able
knowledge
to make maximum use of the knowledge. This knowledge resides in many different
places such as: databases, knowledge bases, filing cabinets and peoples' heads and
are distributed right across the enterprise. All too often one part of an what their
knowledge assets are; how to manage and make use of these assets to get maximum
return
Technology Transfers and Wealth Creation
A lot of national and international Universities have opened up technology innovation centers also
known as Knowledge centers where multi national companies fund these to research centers to
invent and develop technologies. These companies then take the developed technologies to the
market and recover their R & D budget
1. Evolution of Academic Philosophy: From Basic Research to Technology Transfer
2. Stages of Technology Transfer: From Research Support to Economic Growth
Evolution of Academic Philosophy: From Basic
Research to Technology Transfer
Definition:
Technology transfer is the process of taking an invention from
its inception in a laboratory to a commercialized product.