Technological

Environment

Meaning
Technology includes not only knowledge
or methods that are necessary to carry
on or to improve the existing
production and distribution of goods &
Services, but also entrepreneurial
expertise and professional know-how

Sources of Technology
Dynamics
Customer needs/
Expectations

Suppliers
Offerings

Competitive
Dynamics

Demand conditions

Innovative
Dynamics of
the Company

Innovations by
Research
Organizations

Subsitutes

Government Policy

Technology S Curve
Nature of Limits

Technology
Performanc
e
Parameter

New Invention
Period

Mature
Technology
Improvemen technology
Period
t Period

Appropriate Technology
and Technology Adaptation
Time Lags in
Technology
Introduction/
Absorption

Transfer of Technology

Process by which commercial

technology is disseminated
Levels of TT
Operational Level
Duplicate Level
Adaptive Level
Innovative Level

Channels of Technology
Flow

Foreign Investment
Technology License Agreements and
Joint Ventures

Methods of TT
1.
2.
3.
4.

Training or Employment of Technical

Expert
Contracts for supply of Machinery and
Equipment
Licensing Agreements
Turnkey Contracts

Issues in TT

High Prices
Socio-economic conditions
Technological dependence
Transferring outdated technology

Areas of Regulation

The extent and terms of Equity

Participation
Phasing of Domestic Manufacturing
Appropriateness of the technology
Payment terms and foreign Exchange
outflow
Restrictive terms in agreement

Promotional Measures

Providing Advisory Services to Indian

Entrepreneurs in respect of Foreign
Technology
Dissemination of information in foreign
countries regarding foreign investment
potentials and scope for technical
collaboration in domestic economy
Assessing Technological requirements of
various sectors and identifying areas
where froeign technology is required.