UNIT -IV Technological Environment Technological environment in India; policy on research and development; patent law; Technology Transfer.

Technical Environment Introduction

High technology has become like a force of nature. It transforms the economy, schools, consumer habits, the very character of modern life. Investors pour money into it; parents urge their children to study it; communities vie to attract its factories; decorators adopt it as a style; politicians push it as a panacea (cure-all) . (Source : Science Digest Magazine)

Technology environment present the impulsive potential for development. Links between technology and human development
Building human capabilities To live a long, healthy life To acquire knowledge and be creative To enjoy a decent standard of living To participate in the social, economic and political life of a community Resources of education, health, communication, Employment Knowledge creativity Economic growth Resources for technology development

Advances in medicine, communications, agriculture, energy, manufacturing

Productivity gains

Technological change

Technology can be defined as the method or technique for converting inputs to outputs in accomplishing a specific task. Thus, the terms 'method' and 'technique' refer not only to the knowledge but also to the skills and the means for accomplishing a task. Technological innovation, then, refers to the increase in knowledge, the improvement in skills, or the discovery of a new or improved means that extends people's ability to achieve a given task.

Technology can be classified in several ways. For example, blueprints, machinery, equipment and other capital goods are sometimes referred to as hard technology while soft technology includes management know-how, finance, marketing and administrative techniques. When a relatively primitive technology is used in the production process, the technology is usually referred to as labour-intensive. A highly advanced technology, on the other hand, is generally termed capital-intensive.

 Usually an organization may be thoroughly committed to a particular type of technology, and may have made major investments in equipment and training only to see a new, more innovative and cost-effective technology emerge. But the hardest part of a CEO had nothing to do with unions, pay or products, but with whether or not to spend money on the latest technologically improved equipment. It means the cost benefit analysis in connection with changing of the existing technology with new technology

For many developing countries, the changes in the technological environment over the last 30 years have been immense particularly in such areas as chemicals, drugs, and electronics. It is vital that organisations stay abreast of these changes - not only because this will allow them to incorporate new and innovative designs into their products, but also because it will give them a firmer base from which to anticipate and counteract competition from other organisations

When the Gillette Company developed a superior stainless steel razor blade, it feared that such a superior product might mean fewer replacements and sales. Thus, the company decided not to market it. Instead, Gillette sold the technology to Wilkinson, a British garden tool manufacturer, thinking that Wilkinson would use the technology only in the production of garden tools. When Wilkinson Sword Blades were introduced and sold quickly, Gillette understood the magnitude of its mistake.

The transfer of technology is essential for attaining a high level of industrial capability and competitiveness. Multinational corporations are playing an increasingly important role in technology transfer because they invest abroad to expand production, marketing and research activities. There is also a growing consciousness amongst governments of the need to increase technology transfer to the developing countries to help stabilise their economic and social conditions.

Technological environment in India

Being a developing country, in India we can notice the technology transfer from industrialization to agriculture and health care. As a result of improved health care systems, infant mortality rates have been cut while the incidence of once common diseases such as malaria and typhoid has been reduced (although the incidents of the AIDS virus has increased alarmingly). Technology has made little impact on the productive systems, income distribution and living conditions of the majority of the population.

Technological environment in India

Status of technological environment in India After Independence, India had basic problems like poverty , unemployment and development of India . Indian Govt. has taken many following steps for technological development. 1. Establishment of technological and research institute Indian govt. has established 500 technological institutes for providing education to Indian students. It has also established 1080 research institutes. In these institutes major names like space research centre, medical research centre and agricultural research centre have developed India technically. 2. Positive Technical policy India has strong and positive technical policy for technological development. This policy opens door to import technology from foreign countries for increasing agricultural and industrial developments.

Technological environment in India

3. High Growth Rate of Information Technology in India In India, IT sector is developing with 35 percent growth rate, India is second country after China who is using internet at large scale for e-commerce , e-education and eaccounting . 4. Incentive for promoting Technology in India

Indian Govt. has given 125 percent weighted deduction on income tax for expenses incurred in research of technology in India.
State financial corporation is uplifting domestic technology by supporting finance to domestic Industries.

 Now, the technological environment has changed considerably along with liberalization and globalization of Indian Economy.
The need of updated technology in Indian industries was accepted for cost reduction, quality industries was accepted for cost reduction, quality improvement and raising competitiveness of improvement and raising competitiveness of Indian goods in domestic & foreign Foreign exchange and liberal imports are now allowed for the introduction of new technologies

Technological environment in India

The expansion of infrastructure facilities to transport , communication, electricity etc encourages the application of modern technology to industries.

Policy on research and development

Technology policy statement of 1983, emphasized the need to plan collaboration agreements in ways that would ensure effective transfer of basic knowledge, knowwhy important inputs to the importing firms for subsequent absorption, adaptation and upgradation of the initially acquired knowledge

Sector-wise percentage share of R&D expenditure Central government 64.9% State governments 8.6% Public sector 10.1% Private sector 16.4

R&D Organization (2006) Organization Number Strength CSIR 42 Scientists 10,934 (Council of Scientific & Industrial Research) ICAR 89 Scientists 6,281 (Indian Council of Agricultural Research) ICMR 26 Scientists 3732 (Indian Council of Medical Research) DBT 8 Scientists 800 (Department of Biotechnology) DRDO 52 Scientists 6,500 (Defense Research and Development Organization) DAE 17 Scientists 5,000 Department of Atomic Energy ISRO Scientists 10,000 (Indian Space Research Organisation)

Indias S&T Policy on Globalization of R&D To promote international science and technology cooperation towards achieving the goals of national development and security and to make it a key element of international relations. Scientific research and technological development can benefit greatly by international cooperation and collaboration. Emphasis now shifting to external technology acquisition to complement internal efforts.

 For success in global market the most important factor is technical skills to produce superior products at competitive rates. Convenient mechanism for technology transfer inside and across countries. Free and flexible movement of R&D personnel. Suitable/appropriate legal framework for facilitating collaborative R&D and dispute settlement.

Indias S&T Agreements S&T agreements with more than 50 countries. S&T and IPR agreements with France, EU and Russian Federation. Joint R&D programs on material science; cellular and molecular biology, Laser and electro-optics. Information technology. Medical sciences and human genome research Geophysics

Patent Law
Patent laws entitle the patent owner to exclusive patent rights pertaining to his original inventions. Also, patent laws protect a product from the possibility of unethical imitations. Patent is a set of exclusive rights, that is usually granted based on following the right procedures elucidated through the patent law in India. The patent is granted to an inventor or his assignee, for a fixed period of time in exchange of public disclosure of an invention or discovery. The invention must be something new and original, such as a manufacturing process, machine or product. Based on patent law in India, the invention must be novel, unique and have industrial application.

 Under patent laws in India, the patent holder is granted a 20 years monopoly by the State for any invention. Patent protection is still a debatable issue in some cases, such as in the case of computer programs. The Indian Patent Act, 1970 does not provide patent protection to computer programs. However, section 2(o) of the Copyright Act 1957 does provide protection for computer programs and computer data. This is because this section recognizes computer programs and computer data under creative works category that is entitled to copyright protection.

The entire patent system and the patent law in India are governed by the superintendence of General Controller of designs patients, trademark patent and by geographical indications. This office of general controller runs under department of industrial promotions and policy. There are four patent office in India, Head office is located in kolkata and other offices are located in Delhi, Chennai and Mumbai. The examiners of each patent office have to release their work according to the direction of controllers.

Salient features of Indian Patent law : The Patent law of India has the following salient features that decide whether a patent will be granted or not: (a) The Object: The object of patent law is to encourage scientific research, new technology and industrial progress. The price of the grant of the monopoly is the disclosure of the invention at the Patent Office, which, after the expiry of the fixed period of the monopoly, passes into the public domain.

(b) Inventive step: The fundamental principle of Patent law is that a patent is granted only for an invention which must have novelty and utility. It is essential for the validity of a patent that it must be the inventor's own discovery as opposed to mere verification of what was, already known before the date of the patent. (c) Useful: The previous Act, i.e. Act of 1911, does not specify the requirement of being, useful, in the definition of invention, but courts have always taken the view that a patentable invention, apart from being a new manufacture, must also be useful

(d) Improvement: In order to be patentable, an improvement on something known before or a combination of different matters already known, should be something more than a mere workshop improvement, and must independently satisfy the test of invention or an inventive step. It must produce a new result, or a new article or a better or cheaper article than before. The new subject matter must involve "invention" over what is old. Mere collocation of more than one, integers or things, not involving the exercise of any inventive faculty does not qualify for the grant of a patent. (e) The guiding tests: To decide whether an alleged invention involves novelty and an inventive step, certain broad criteria can be indicated. Firstly if the "manner of manufacture" patented, was publicly known, used or practised in the country before or at the date of the patent, it will negative novelty or 'subject matter'. Prior public knowledge of the alleged invention can be by word of mouth or by publication through books or other media. Secondly, the alleged discovery must not be the obvious or natural suggestion of what was previously known.

The Indian patents Act, 1970 is not only a complete Act but also in conformity with the TRIPS(traderelated aspects of intellectual )property rights Agreement. It, however, needs enunciations in the form of judicial precedents as the same are lacking in case of patent law. It further must be analysed in the light of International developments in this field. The Indian Patent law must also be analysed in the light of both Public International law and the Private International Law as the same may create some problems in future. Further, the use of Information and Communication Technology

Technology Transfer
The transfer of technology is essential for attaining a high level of industrial capability and competitiveness. Multinational corporations are playing an increasingly important role in technology transfer because they invest abroad to expand production, marketing and research activities. There is also a growing consciousness amongst governments of the need to increase technology transfer to the developing countries to help stabilise their economic and social conditions.

Technology Transfer

Technology transfer is a complex, time-consuming and costly process, and the successful implementation of such a process demands continuous communication and co-operation between the parties involved. Furthermore, technology transfer cannot be effective if it experiences conflict with the economic and social needs of the recipient country. Technology transfer may become a serious source of conflict between donor and recipient countries. The recipient country may feel that the donor is trying to dominate it through technology, capital and production.

Technology transfer

Technology can be transferred from person to person, industry to industry and government to government, although the government of any country generally plays the most important role in facilitating or impeding the transfer process. Contacts amongst students from different countries are also a means of technology transfer as are journals, books, technical and professional publications, trade magazines and product pamphlets. Furthermore, multinational corporations play an important role in technology transfer by transferring information and technology from the parent company to subsidiaries in other countries, training foreign employees, etc.

Technology Transfer

Dependence on foreign technology can be viewed as a serious threat to economic independence. Countries that export technology may experience different problems. For the seller of technology, the technology transfer can result in unemployment in the home country and future loss of technological superiority. For example, Japan transferred modern steel production technology to South Korea in the early 1970's. As labour and production costs in Japan increased, the Korean steel industry began to take over a significant portion of the previously Japanese-controlled international market. Some Japanese executives are now complaining that the cost of technology transfer has been much greater than the income received through the sale of technology.

The End