TECHNOLOGY, BUSINESS & UNIVERSITIESThe Role in a Globalising World

byY.S. Rajan

Principal Adviser, CII[y.s.rajan@ciionline.org]

(views personal)

To be presented at Vellore Institute of Technology

9th February 2007, Vellore

© Confederation of Indian Industry

TECHNOLOGY DIFFUSION

Some basic facts

Understanding process

Approach for actions

© Confederation of Indian Industry

SOME BASIC FACTS

It is a globalising world in trade, technology, and economy

Therefore WTO regimes We have entered into an era of confluence of

multiple disruptive technologies Old approaches of success won’t work. Technology diffusion should be allround

© Confederation of Indian Industry

RATE OF CHANGES DUE TO DISRUPTIVE TECHNOLOGIES

Agriculture era ——— centuries

Industrial revolution ——— a few generations

Microelectronics etc ——— a decade or two

“Confluence of MDT’s” ——— couple of years

© Confederation of Indian Industry

OLD PARADIGMS

Developed Countries

Develop Transfer Upscale Trials

Changes Launch commercially

use feedback Mark versions

© Confederation of Indian Industry

OLD PARADIGMS (contd…)

Developing Countries

Industries Turnkey or Licence Set up plant

Training Production Some localisation Wait for decades

S&T InstitutionsResearch Publish(occasional transfer to industry)

© Confederation of Indian Industry

NEW PARADIGMS

Speed is a must

Global value chain : Position yourselves

Adapt your product to the chain

Innovate to raise up (Radosovic book)

© Confederation of Indian Industry

APPROACH

Therefore all the global business, technology and knowledge sharing (If done technology diffuses to you, from you to others)

© Confederation of Indian Industry

MANAGEMENT OF KNOWELDGESOCIETY

Some issues

Developing countries with lots of poverty - no uniformity of knowledge & skills.

Therefore individual ability to value add is low; so they are poor

© Confederation of Indian Industry

© Confederation of Indian Industry

© Confederation of Indian Industry 11

SOME QUESTIONS ABOUT INDIASOME QUESTIONS ABOUT INDIA ? ? WHAT IS GLOBAL SHARE OF INDIA IN IT ?WHAT IS GLOBAL SHARE OF INDIA IN IT ? RANKING OF INDIA IN TECHNOLOGY LICENCING, TECH. RANKING OF INDIA IN TECHNOLOGY LICENCING, TECH.

TRANSFER, TECH. COMMERCIALISATION ?TRANSFER, TECH. COMMERCIALISATION ? GROSS ENROLMENT RATIO IN HIGHER EDUCATION ?GROSS ENROLMENT RATIO IN HIGHER EDUCATION ? HOW MANY CHILDREN IN AGE 1, 5, 10, 15, 18, 20, 25HOW MANY CHILDREN IN AGE 1, 5, 10, 15, 18, 20, 25 HOW IS INDIA’S CURRENT ACCOUNT DEFICIT MANAGED HOW IS INDIA’S CURRENT ACCOUNT DEFICIT MANAGED

?? IS EFFECTS OF GLOBALISATION UNIFORMIS EFFECTS OF GLOBALISATION UNIFORM ? ?

© Confederation of Indian Industry 12

TECH INTERMEDIATIONTECH INTERMEDIATIONIt is wrong to look at growth of technologies as a serial chain of It is wrong to look at growth of technologies as a serial chain of

Idea, Basic Research, Up-scaling, Pilot Plant Trial, Idea, Basic Research, Up-scaling, Pilot Plant Trial, Launch of Commercialisation and Standardisation Launch of Commercialisation and Standardisation

Problem of SimultaneityProblem of Simultaneity

Late comer firms can compress the cycle Late comer firms can compress the cycle Knowledge Sharing and In-house R&D Knowledge Sharing and In-house R&D

Role of MITI and other agenciesRole of MITI and other agencies

Systemic Character of New TechnologiesSystemic Character of New TechnologiesSeveral Channels and Multiple Receiving PointsSeveral Channels and Multiple Receiving Points

Role of government Role of government from Controller to Network Supporterfrom Controller to Network Supporter

SMEs and Tech IntermediationSMEs and Tech Intermediation

See:Global Business, Technology and Knowledge Sharing : Lessons for Developing Country Enterprises - Ch. 7

N.S.Siddharthan / Y.S.Rajan

[published by Macmillan India Ltd]

© Confederation of Indian Industry 13

© Confederation of Indian Industry 14