Types of technologies

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Types of Technologies

Why Technology has become a critical issue?

International product Life Cycle theory Phase1: Export of local innovation to other markets

Ex: TVs invented by American and European companiesstarted selling in other markets in Europe.

French company, which introduced electronic telephoneterminal, started exporting to other European markets.

Phase 2: Market grows and continues to grow and demand issatisfied by local production

Phase 3: Exports by innovator starts decreasing. Demand forthe new goods in less economically developed countries isrising. Demand is satisfied by earlier followers

Phase4: Product or service is no longer an innovation. Less

developed countries starts making the product moreeconomically and exports to innovating countries


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Global Competitiveness Ranking 2006Ranking 2007

Business Competitiveness
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Technology

Technology can be defined as all knowledge,

products, processes, tools , methods, and systemsemployed in the creation of goods or in providingservices

Classification of Technology

New Technology: A new Technology is anynewly introduced or implemented technology thathas an explicit impact on the way a companyproduces products or provides services.

Ex: Computer software for drawing replacingmanual drawing, Selling products through internet,

ATMs in Banks.


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Emerging Technology:An emerging Technologyis any technology that is not yet fullycommercialised but will become so within five years.

Ex: Superconductivity, Digital Studios. High Technology: High Technology refers to

advanced or sophisticated technology Ex: PSLV in satellite launching, Cryogenic

technology, Genetic Engineering, SoftwaredevelopmentHigh Technologies Company has following

characteristics Employs highly educated people ( Scientists and

Engineers) Its technology is changing at faster rate than other

industries It competes with technological innovations High level of R&D expenditure


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Low Technology: Low Technology refers totechnologies that have permeated large

segments of human society. Ex: Digital Technology, Computer Chips

manufacturing, Generic drugs.

Low Technology Companies have followingcharacteristics

Employ people with relatively low level of

education or skill Use manual or semiautomatic operations

Low level of R&D expenditure


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Codified and Tacit Technology:Technology can be preserved and effectivelytransferred among users if it is expressed in

coded form. Engineering drawing expressing shape,

dimensions and tolerance about a product

Tacit Technologyis nonarticulatedknowledge. There is no uniformity in the wayit is presented or expressed to a large groupof people. It is usually based on experiencesand therefore remains within the minds of itsdevelopers. Knowledge is transmitted bydemonstration or observation followed by

assimilation by those who seek knowledge.


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Technology TransferDefinition: Technology transferis a process that permits the flow of technology from a source to a

receiver. The source in this case is the owner or holder of knowledge, while the recipient isthe beneficiary of such knowledge. The source could be an individual, a company, or acountry.

Categorises of Technology Transfer International Technology Transfer:Transfer is across national boundaries. Ex: Technology from industrialised countries to developing countries. Regional technology Transfer:Technology is transferred from one region of

the country to another.

Ex: Transfer of Technology from Mumbai to Bangalore Cross-Industry technologytransfer: Technology is transferred from one

industrial sector to another. Ex: Transfer of Technology from space program to commercial

applications. Inter firm technology transfer:Technology is transferred from one firm to

another. Ex: Transfer of computer aided manufacturing machines from an

automobile manufacturing firm to furniture producing firm. Intrafirm Technology transfer:Technology is transferred with in a firm from

one location to another. Ex: Transfer of Technology from a companies Bangalore division to its

Pune location


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Channels of Technology Flow

General Channels: Technology Transfer is done unintentionallyand may proceed without the continued involvement of the source.Information is made available in public domain with limited or norestrictions on its use. This information is harnessed by users andapplied to their purposes.

Examples of such channels are education, training, publications,conferences, and Study missions

Channels of

Technology Flow

General

ChannelsReverse Engineering

ChannelsPlanned Channels


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Reverse-Engineering Channels: Transfer inwhich no active contribution from the source.Here receiver is capable of breaking the code oftechnology and capability to duplicate it in somefashion.

Ex: Compaq developed its first PC using reverse

engineering. Compaq had all componentsneeded for PC except ROM-BIOS Chip. Thistechnology was owned and protected by IBM.Compaq engineers did reverse engineering of

the chip to make similar chip and made the PC.Compaq sold 47,000 PCs (IBM compatible) infirst year worth $111 Million!


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Planned Channels: Transfer is doneintentionally according to a planned process andwith the consent of the technology owner.

Types of Planned Channels:

Licensing (Purchase of right to utilise thetechnology)

Franchise (Sale of technology with continualsupport)

Joint Venture

Turnkey Projects

Foreign Direct Investment (FDI) Technical Consortium and joint R&D Projects

(Consortium between France and England todevelop supersonic Planes)


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High tech is technology that is at the cuttingedgethe most advanced technology currentlyavailable. The adjective form is hyphenated:

high-tech orhigh-technology. (There is alsoan architectural style known as high tech).

There is no specific class of technology that ishigh techthe definition shifts over timeso

products hyped as high tech in the 1960s wouldnow be considered, if not exactly low tech, thenat least somewhat primitive. This fuzzy definitionhas led to marketing departments describing

nearly all new products as high tech.(Source: Wikipedia)


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High tech sectors

Aerospace technology

Biotechnology

Information technology Nanotechnology

Robotics

OECD also classifies industries. OECD has two different

approaches: sector and product approaches. The sectorapproach classifies industries according their technologyintensity, product approach according to finishedproducts. Further analysis from OECD has indicated thatusing research intensity as only industry classification

indicator is also possible. The OECD does not only takethe manufacturing but also the usage rate of technologyinto account. The OECD's classification is following(stable since 1973):


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Industry name Total R&D-intensity (1999, in %) ISIC Rev. 3

High-Technology

Pharmaceuticals 10.46 2423

Aircraft & spacecraft 10.29 353

Medical, precision & optimal instruments 9.69 33 Radio, television & communication equipment 7.48 32

Office, accounting & computing machinery 7.21 30

Medium-High-Tecnology

Electrical machinery & apparatus 3.60 31

Motor vehicles, trailers & semi-trailers 3.51 34

Railroad & transport equipment 3.11 352+359

Chemical & chemical products 2.85 24 (excl. 2423)

Machinery & equipment 2.20 29

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Types of technologies