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Technology absorption :refers to the acquisition, development, assimilation, and utilization of technological knowledge and capability by a firm from an external source.

The transaction occurs between transferring and receiving organizations.

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ADOPTION: Technology absorbed without changing the parameters of acquired technology is called technology adoption.

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ADAPTION: It is a phase that takes place after a technology has been adopted and put into use in production activities/facilities.

The process under which the various features of the technology which is the subject of transfer are suitably modified, changed or altered keeping in the view the needs of the buyer.

During this stage, a number of alterations and modifications to suit the indigenous conditions are made and they may relate to the use of raw materials/components manufactured.

It covers both product modifications as well as production technology changes, using indigenous skills as well as local materials.

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ABSORPTION: It involves ‘Know-why’ exercises, basic investigations into the product and or process and or systems.

This will require unpack aging of a technology package.

It requires R&D projects in know-why, optimization and improvement of product/process/systems and related equipments.

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OPTIMISATION:t is the effective savings in the use of material and energy consumption both in product and processes which constitute optimization of technology

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Technology Absorption involves following four basic:components

Hardware – refers to particular physical structure of components & also their logical layout which are

subject matter of absorption. Software - - refers to Know how of carrying out tasks to

achieve goals & objectives. Brainware - refers to application & justification of

, , - -hardware software development know what & know .why of technology , , , That is what to employ how when

, where and why. Support Net - , refers to complex network of physical

– informational and socio economic transformations that support the proper use and functioning of

giventechnology.

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Prefeasibility report/project report Technology negotiations Approvals/clearances with

Government Foreign collaboration agencies Funds from financial institutions Land Acquisition Clearances from State Govt. and other

bodies for power etc

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Technology Transfer. Design/know-how, experts, training Use of Indian consultants Procurement of equipments,

components and materials. Payments for technology, RM, and

equipments. Project implementation.

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Trial runs Debottlenecking /rectifications Production based on selective imports

of components/RM Indigenization of RM/ components,

equipments. Adjust product/process technology to

suit local conditions.

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Analyze and unpackaged technology Investigate product/process designs

and technology. Optimize technology for higher quality

and performance. Design; develop components/raw

materials/equipments. Use research linkages.

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Improve product/process designs and technology for better performance/utilization.

Use Research linkages. Upgrade product/process to reach larger

scales/capabilities. Benefits of technology Absorption and up

gradation Repeated collaborations for the same

product/process are avoided. Acquisition of further technologies becomes

selective. Ability is developed to unpackaged technology.

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Savings can be affected in foreign exchange. l Effective utilization can be made to achieve desired

results. l Exports are increased. l Know-why and technology up gradation capabilities

are built up. Technically competent groups of scientists and

engineers trained in technology absorption get matured and strengthened.

The base for technological self-reliance is enhanced. Product and Process cost saving can be done. Increase in sales and profits.

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Industry should attempt to obtain best available technology closest to international trends and provide R&D at the stage of project planning.

Speedy indigenization of raw materials and components.

Efforts for unpack aging of tailor-made equipments in the acquired technology

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Diffusion is the process by which a new idea or new product is accepted by the market.

Technology Diffusion means the spread of applications / usage of a new technology and its related products, services or processes from one nation to another; from one entity to another; from one industry to another; from the owner entity to user or supplier; and from current user to the prospective user.

 Technology Diffusion means the study of how, why, and at what rate new ideas and technology spread across the economy.

 

According to Everett M Rogers’ theory, the diffusion takes the shape of bell curve in terms of number of adopters over the passage of time and takes the shape of S-curve or Logistic curve in terms of cumulative number of adopters over the passage of time.

Various studies show that with the passage of time, technology and innovations get diffused from innovators to followers; and lastly to laggards. the trend of the percentage of organizations that adopt a new technology and innovations over a period of time - in cumulative terms – takes the shape of S–Curve; also called Logistic Curve. It is

shown in the figure as follows:  

Perf

orm

an

ce C

hara

cte

risti

cs

Time

TechnologyRegime 2

Technology Progression

TechnologyRegime 1

Technology Leader/Innovator

Laggards Technology Follower

. . During the intial stage i e innovation stage, technology and innovation gets diffused within

. the innovative organizations Such organizations .usually follow technology leadership strategy

. . During next stage i e consolidation stage, diffusion takes place amongst major competitors.

, . . During the last stage i e mature technology stage, diffusion spreads to

. , , -laggards These laggards are usually risk averse and small organizations or small market.players

/ The rate of learnings spread amongst various entities is influenced by profitability and

investment . required

Product diffusion is a case of innovation diffusion. According to Everett M. Rogers, for any given product category, there are five categories of product adopters:

Innovators – venturesome, educated, use multiple information sources, possess greater propensity to take risk (2.5%),

Early adopters – social leaders, popular, educated (13.5%),.

Early majority – deliberate, many informal social contacts (34%),.

Late majority – sceptical, traditional, lower socio- economic status (34%)

Laggards – neighbours and friends are main information sources, fear of debt (16%).

Product diffusion takes the shape of bell curve in terms of number of adopters over the passage of time and takes the shape of S-curve in terms of cumulative number of adopters over the passage of time. This is shown in the figure as follows.

:

- . Diffusion is not one way traffic The innovator can .also learn from imitator

- - . Diffusion is not once for all occurance It is .cyclical in nature

:Diffusion can take place in varying degrees IntraFirm - diffusion of lowest degree ; - InterFirm

diffusion of medium degree; - Economy wide .diffusion of highest degree

Diffusion can take place in variety of forms … viz , product service or a process: use & production;

stock of technological knowledge

. . - The pattern of diffusion i e shape of S curve isI nfluenced by profitability and i nvestment

, required

Prior to 1990, rate of technological change has been slow due to cold war between USA & USSR, restriction on MNCs, existence of high trade barriers across countries. 1990Since s rate of technological change has become faster.

This increased rate of technological change is noticeable in following areas:

Most of nations have adopted formal technology development policy and aim at gaining / .technological progress advancement

( Innovations new product / process ) developments are no more confined to

. developed world They can take place, .anywhere anytime

Contd … Globalisation of technology is taking place at a

faster pace due to variety of factors Technological development is becoming highly

- . customer oriented As the customer needs & tastes , are increasing and changing technological

changes are increasing. Decreasing payback period – to derive benefits of

technology development Time compression – decrease in time available in

various activities / phases of technology development

There is faster movement of products and services from Research & Development center to markets

( ).reduction in lead times

Contd … There is increasing focus on simplification of

products viz journey from earlier big computers to ; -modern portable computers emerging nano

.technology ( There is more focus on ergonomics human

) convenience to use Technology life cycle is getting shorter due to fast

technological changes or technological.discontinuties

Product life cycles are decreasing due to fast , changes in consumer needs increasing awareness

.about new or improved technologies Technological change may occur not only due to

/ / development of improved hybrid new technology but it can occur even due to some

.development in unrelated technology

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