m One-up-on-a-time¶s illusion is getting into reality because

of technology.

m Technological changes enabled à to take the shape

transnational business through the concept of Global
business. Ã gained significance due to the amazing
advancements of technology.

m Technology is the application of knowledge

 onsiderable time lags have been observed between
countries in respect of introduction or absorption of
technologies
 The time lags in the introduction of technologies may
even result in some products not being able to reap
the market. The electronic typewriter became popular
in India before the electric typewriter could penetrate
the market. The electronic typewriter could not
achieve significant growth because of the advent of
the computer.
m Technology makes more technology.

m It is self reinforcing.

m It brings the globe closer.

m It flows from the advanced countries to the developing

countries through the MN ¶s , JVs , technological
alliances, licensing & franchising.
  
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Ã
 
m advanced countries spends considerable amount on
R&D for further advancement of technology.
u
 "
à "
à 


 

 
" 
u " u

à à à à 

GERMaNY 50% 50%

Ja aN 30% 70%

USa 70% 30%

m Technology is one of the significant factors which determines
the level of economic development of a country.

m The difference between the nations is mostly reflected by the

level of technology.

m India had vast natural resources , it remained as a major

importing country due to its low level technology before
1991.Japan with its high level of tech. could export finished
goods to India by importing the raw material from India itself.
Thus though Japan is endowed with poor natural resources ,
the Japanese became reach
& advanced due to technology.
 m Nations develop economically when they translate science into
useful technology & in turn create wealth from innovations.
Innovations is the useful adaption of science or knowledge including
inventions of new products or processes.

" "    Ã # $

$      

    

GERMaNY Innovations in chemicals,

pharmaceuticals, automotive
engineering , medical instruments &
machine tools

ITLaY Innovations in textiles & leathers


hen different technologies are available, it needs to
be ensured that the technology chosen is the most
appropriate for the company/country.
 The technology suitable in one environment may not
be appropriate in another. This could be due to
reasons such as differences in natural factors such as
topographical conditions, climatic/weather condition,
soli condition etc.,
 Much of Japans' successful growth has been due to
the systematic purchase of appropriate technologies
from abroad.
 Technology transfer is the process by which
commercial technology is disseminated.
 There are two forms of TT, viz., Internalized and
Externalized forms of technology transfer.
 Internalized forms refer to investment associated TT,
where control resides with the technology transferor,
the transferor, normally, holding the majority or full
equity ownership. Externalized forms refer to all other
forms, such as joint ventures with local control,
licensing, strategic alliances and international
subcontracting.
 Operational Level: These are the simplest ones,
needed for operating a given plant
 Duplicative level: This includes the investment
capabilities needed to expand capacity and to
purchase and integrate foreign technologies.
 adaptive level: at this technological self-reliance
level, imported technologies are adapted and
improved.
 Innovative level: This level is characterized by
innovative skills, based on formal R&D, that are
needed to keep pace with technological frontiers or
to generate new technologies.
m roreign Investment

m Technology License agreements and Joint

Ventures
rour important issues associated with the transfer
of technology are:
1. ost
2. appropriateness
3. Dependence
4. Obsolescence4.