UNDERSTANDING TECHNOLOGY

AND ITS RELATIONSHIP WITH

WEALTH OF NATIONS

TECHNOLOGY MANAGEMENT
What is Technology?

 The word Technology comes from two Greek Words:  

 Techne (Technikos) – the art or skill or craft needed to make something 
 Loges (ology) – discussion or knowledge of something or systematic treatment
So, technology means the knowledge of how something is made 

 From economist’s point of view, technology is knowledge used in production,

commercialization and distribution of goods and services 

 Technology is embodied in various forms such as machinery, equipments, documents,

processes, skills, etc.
Meaning of Technology

Technology conveys different meanings to different people under different contexts 

 Some view technology as: 
 A source of ‘wealth’
 A source of ‘well being’
 An instrument of ‘power’ to dominate nature and societies 

 Others view technology as something that has:

 Enslaved human beings
 Destroyed jobs
 Destroyed environment and social values

 From these, it is very clear that: 

 Use and Abuse of technology is leading our societies towards disaster and
  Further development of human society is possible only through the application of
technology
Meaning of Technology (cont…)

 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 has the following characteristics:

Characteristics of Technology (cont…)

 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.
Hardware technology can be of two types:
a)the end use product type such as automobiles, computers,
TV, CD players and
b)the production tool type such as instruments, equipments
and machinery, example- Drill machine, soldering machine,
CRO, etc.
Software is the know-how, technique or procedure.
Software technology can also be of two types:
a)the know-how type technology such as processes,
techniques, methods and
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) 

 Technology is a source, which comprises knowledge applied to improving the efficiency

of the production and marketing of existing goods and services and creation of new goods
and service
The Technology Defined (cont…)

 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

 We know that interconnection between science and economy is through technology

 Internet was new technology arising from new science (research in computer science) to
enable computers to communicate. The economic impact of the new technology was its
implementation in new products and services. Due to this direct connection provided by
technology between science and economy, we need to be precise in using the terms 
 Technology is knowledge of the manipulation of nature for human purposes 
 Science is the discovery and explanation of nature

(Nature is the totality of the essential qualities of the experienceable phenomenon of the
universe. )

 Science understands nature and technology manipulates nature

 Some Technological Developments
Some significant technological developments during the last two centuries in selected areas
Years Food and Agriculture
 Food pasteurization and
sterilization
 1775 – 1825
 Chemical fertilizer for
improved agriculture
 Food preservation and
fermentation
 1825 – 1875
 Farm implements for
increased production
 Food canning and freezing
 1875 – 1925  Animal breeding and
agricultural experiments
Transport and
Communication
 Watt’s Steam Engine
 Fulton’s Steam Boat
 Stephenson’s Steam
Locomotive
 Faraday’s dynamo
 Morse’s telegraph
 Electric locomotive
 Ships and pipelines
 Automobile, aeroplane,
submarine
 Printing, telegraph and
telephone
 Larger ships
Health and General
 Cellular pathology
 Synthesis of vitamins and
enzymes
 Whitney’s cotton gin
 Microscope
 Electric light
 Sewing machine
 X-Ray
 Vaccination and
immunization
 Wireless and radio
 Textiles
 Some Technological Developments (cont…)

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

 High speed and high  Transplantation of organs

 Semi-processed and pre- payload aircrafts
blended food  Integrated circuits
 1950 – 1975  Nuclear powered ships
 Integrated farming and  Synthetic materials
aquaculture
 Micro-wave link and
communication satellite
 Vending machines

 Supersonic passenger
 Non-conventional food  Advances in bio-
aircrafts
 1975 - items (single cell protein engineering
technology)
 Fibre-optical Tele-Photo  Artificial organs
communication

 Computerization  Computerization  Computerization

Innovation and Invention

 We know that interconnection between science and economy is through technology

Technological innovation is a business process and technically savvy managers use

principles of innovation
Speed of Introducing Technological Development
into Social Use

Specific
Invention Innovation Speed of Change
Technology
Aspirin 1853 1899 46

Incandescent Lamp 1854 1880 26

Telephone 1860 1887 27

Photography 1871 1888 17
Synthetic Rubber 1882 1932 50
Ballpoint Pen 1888 1938 50
Fluorescent Lamp 1896 1938 50
AM Radio 1900 1920 20
FM Radio 1902 1936 34
Aeroplane 1903 1920 17
Vacuum Tube 1904 1915 11
Speed of Introducing Technological Development
into Social Use (cont…)

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

Electronic Computer 1945 1951 6

Transistor 1947 1951 4

Need of Technology

 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…)

 According to Robert Solow and Joseph Schumpeter:

 Investments in the development and deployment of new technology have been recognized
as the engines for economic growth. Increased economic well being benefit the whole
society as it offers satisfaction of human needs and better life for all
 Newer technology can provide more efficient ways of performing work and open new
paths for human activity

 Technology primarily helps in:

 Achieving Higher Efficiency (through improved work methods)
 Achieving Higher Productivity
 Improving Quality
 Time to Market
 Satisfying human needs
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

Based on the above: Invention, innovation, investment in risky ventures, adoption of

new technology and new products and services, institutional learning and so forth are
the major processes in wealth creation
 USA became the richest country in the world a century ago, primarily on the strength of its
superior ability to innovate and create new business enterprises.
Why Technology Management?

 Technology is crucial to the economic development of a country. Management of such an

important resources, both at the national and enterprise levels is very vital
 The technology and its development cannot be left to the forces of chance 
 As a crucial resource affecting the economic growth, it has to be properly planned, cultivated
and developed
 Forces within the firm for technological growth have to be harnessed, organized and
encouraged. Problems needing technological solutions have to be identified, alternative
solutions have to be generated, analyzed and evaluated. All this calls for an imaginative and
effective management of technology for sustained growth of the enterprises and for greater
competitiveness 
 Our focus would be on management of technology at the enterprise level and at national level
Scope of Technology Management

 Technology Management embraces some key elements or functions. These are:  

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

 Accordingly after a university education, the practical education of managers and

engineers or scientists needed to be completed. The missing part was the interaction of
matter and money

 So “Management of Technology” came into existence in B-schools

TECHNOLOGY FOR WEALTH
CREATION

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

Technology • Introduction of different communicating devices

for creating • Luxurious cars
the wealth • Various highly technical home appliances
of material • Availability of online library, other reading and knowledge materials
comfort • Improvement in income

• Health technologies are developed to solve a health problem and improve

quality of lives
•They form an indispensable component of the services health systems can offer
Technology in the prevention, diagnosis and treatment of disease and in alleviating disability
for health and functional deficiency
• E - Health for Health Care Delivery
• Diagnostics and Laboratory Technology (DLT)
• Transplantations
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.

 Obstacles to Effective Technology Transfer:

 In the traditional view, overt commercialization is in contradiction to the pure goal of scientific
enquiry
 Private universities with large endowments have been concerned that engaging in
commercialization may subject them to lawsuits
 Stages of Technology Transfer:
From Research Support to Economic Growth

 What Does this Production

Function Tell Us About
Technology Transfer?
More in Tax
Federal Revenues
State Startups  Investment in R&D is a
necessary but not a
sufficient condition for
economic growth
Research Inventions New Products
Patents Economic
Support Disclosure Higher Standard
Growth
of living  Productivity gains only
result from the natural
diffusion of innovation to
the marketplace
Corporate Endowment
Licenses
New Jobs (technology transfer)
Thank You!