Definition of Technological Environment :-

“Technological Environment means the development in the field of technology which

affects business by new inventions of productions and other improvements in techniques
to perform the business
work. "

Explanation
We see that in 21st century, technology is changing fastly. Now, all work is done online
and business shops are using machinery at high level. There are following technological
environment factors which affects business.

• New inventions to produce the products.

• New inventions relating to marketing like BPO for selling online in international
market.

Status of Technological Environment or Technology 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.

3. High Growth Rate of Information Technology in India

In India, IT sector is developing with 35% growth rate, India is second country after
China who is using internet at large scale for e-commerce , e-education and e-
accounting .

4. Incentive for promoting Technology in India

• Indian Govt. has given 100% income tax exemption for expenses incurred in research of
technology in India.
• State financial corporation is uplifting domestic technology by supporting finance to
domestic Industries.
Technological Environment:

Why is it So Important? So Important?

1. It brings new products, processes, and materials.

2. It directly impacts every aspects of our society (transportation, energy,
communications, entertainment, health care, food, agriculture, industry).
3. It alters the rules of global trade and competition.

Application of knowledge

* Intends to solve practical problems

* consists of:
– Applied research with specific objectives
– Development resulting in workable prototypes
– Engineering defining the knowledge for commercial exploitation
– Commercialization including mass production

IMPORTANCE OF TECHNOLOGY?

It is one of the most important driving force post-II world war in shaping up economies
of various countries.

It improves quality of life in the society. New and improved products and processes are
made available in society.

Technology is directly linked to level of scientific knowledge, particularly applied

sciences.

Technology is both hard and soft-that is machine, as well as, way of thinking

Technology is thus level of scientific sophistication and level of knowledge in application

of sciences to production processes, be it goods or services (like Heart operations or
Aircraft flying, or designing and fabricating a nuclear reactor).

The changes in Technology are so rapid now that the Industry has to keep track of same
and keep modernizing to remain competitive and in business.

Some of the areas of technology objectives are>>

- Method of manufacturing a product

- Improvement in product design or manufacturing process
- Reduction of waste
- Reduction of manufacturing cost
- Using new raw materials
- Using eco-friendly materials
- Improving process quality and reliability
- Introducing new products and services
- New methods of delivery and distribution
- New ways of management control and information (like ERP, VSAT, Video
conferencing, and now Convergence technology)

Major Challenges in use of technology is the rate at which it is diffused in the country,
companies and manufacturing plants, and also the suitable adaptation of the same for the
user of the technology.

Here comes the issue of the Appropriate Technology.

Some of the new technologies that have vastly impacted the manufacturing sector are:
1) Information technology (Internet). 2) IT enabled services (Call centers). 3) Bio
genetics or DNA Technology (Hybrid agricultural seeds) and genetic based medicines
(AIDS Vaccine) 4) Laser. 5) Robotics (Mechanization or atomization). 6)
Superconductivity. 7) Bio-degradable materials replacing convention materials. &
Ceramic materials (Like ceramic engine body)

This has had vast impact on availability of newer and newer products.

The World Economic Forum {WEF} considers technology as one of the 8 factors to
evaluate the global competitiveness of the countries.

The IT and Communication technology has made virtual factories and virtual universities
possible. The computer power has completely changed the warfare methods and defense
strategies of Nations.

Knowledge management and knowledge-based industries have thus emerged as sunrise

sectors in economy.

For utilizing this - a country needs following>>>

1. Computer literacy and skilled computer programmers

2. Efficient and deep penetration of telecommunication like Land and cellular phone
network with high bandwidth availability
3. Inventory of technically qualified persons in the country
4. World class Education and Training facilities.
5. Innovation Culture (Missing in India vis-à-vis USA, Japan)
6. In-house R & D facilities with Companies (Ranbaxy)
7. R&D support and Infrastructure by National and State Governments (DRDO,
RDSO,CDRI and so on).
8. A network of research Laboratories, training centers, Tool rooms and Incubation
centers for developing entrepreneurship.
9. Strategic global alliances for research and application of technology which in many
cases has prohibitive costs, like in Pharmaceuticals, Genetic Engineering, Space and
nuclear research.
10. Incentives for capital to flow into R&D in the country both internal and external
investments.

MEASURES OF TECHNOLOGICAL ENVIRONMENT:

India's Expenditure on R&D is less than 1% of GDP as against 2.5 % of developed

nations and the GDP itself being very low compared to these countries, the absolute
investment and expenditure on R&D is very poor (As against USA 247 Billion $ India
had barely 3.5 Billion $s). Apart from this the contribution of Corporate India is poor
(only 15%) in this. A good part of it goes into Strategic research budget like space and
defense.

Another Measure of technological Environment in the country is the Number of

International patents filed by the Laboratories and Firms from a country. Just compare
this for India with Lucent Laboratories USA (Now headed by an Indian), which files
more than almost one patent every day.