QUANTITATIVE ANALYSIS OF TECHNOLOGICAL DEVELOPMENT

Indicators of technological progress

Technological progress
Technological progress is a process that leads to:

creation of new or improved methods of production that provide savings, introduction of new and improved products and services, improvement of organization and production management.

Technological progress can be observed globally and /or partially.

Technological progress
At company level we consider 10 basic components of technological progress:

product equipment, materials, energy, R & D, investment, human resources, environmental protection, organization management.

Product
Global productivity Bp- gross production Tr- labor costs Tos- costs of fixed and working assets

Gp = Bp / ( Tr + Tos )

Equipment
Technical equipment per employee Tor = Vos/N Vos- Value of fixed assets N- Number of employees.

Equipment
Factor of technological level of equipment
Pi ( Zi po + Ki ko + Q ) Fi/o = ____________________ Po ( Zo po + Ko ko )

P- net product Z- number of employees Po- the average annual fees for employees K- invested funds k- interest that would be received on borrowed funds Q- production increase, as a result of improved capacity utilization

Energy
Electricity consumption per employee Pe = Pe / N Pe- overall electricity consumption N - number of employees

R&D
Indicator of R & D ratio of income and expenses for R&D p = P / TIR P - total income TIR total costs for R&D activities

Investments
Intensity of investments L = IS / N IS- overall investments N- total number of employees

Human resources
Level of qualifications and qualification structure n- number of employees at appropriate level of expertise N- total number of employees

Qn= n/N 100 [%]

Production function
Production function is a model that shows a maximum level of output that could be achieved with specific input Global production function Particular production function

Cobb-Douglas

Cobb-Douglas form of production function is widely used to represent the relationship of an output to inputs
Q=AL K

Q - total production (the monetary value of all goods produced in a year) L labor input - labor production factor K capital input - capital production factor A factor in proportion to production growth and depended on technological progress elasticity of production volume in relation to labor production factor - elasticity of production volume in relation to capital production factor

Rate of technological progress

A = emt
o o o

e constant t time m rate of technological progress

Q= emtL K lnQ = mt + lnL + lnK Q/Q = m + L/L + K/K

m = Q/Q - L/L - K/K

Rate of technological progress

Ratio of factor L to production growth Ratio of factor K to production growth Ratio of factor m to production growth

L L Q Q

K K Q Q

m Q Q