Technological Environment
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Nepal is transitioning from a rural to urban economy and has a literacy rate of 68.2%. Agriculture accounts for about 40% of GDP and 80% of the population derives their livelihood from it. Technology is viewed as a means to increase productivity by combining resources. Nepal's industrial sector relies on imported and low grade technologies with little focus on R&D. Exports are mainly raw materials and skill development lags requirements. Technology transfer occurs through foreign investment but the scale of projects is generally small. Information technology is increasing access to education and tourism information but remains limited outside urban areas.
Technological Environment
- 1. Presented By: •Adesh Thangden •Anmol Pasa Shrestha •Asish Tandukar •Chhitiz Shrestha •Dikshya Acharya
- 2. Nepal Developing economy: transferring from rural to urban and traditional to modern market oriented Predominantly agricultural country, about 80 percent populations deriving their livelihood from this sector and the main source of gross domestic production (about 40%) Literacy rate: 68.2% ( According to the UNDP report 2011)
- 4. Nepal’s economy at a glance US$ 1 Qatar Cote 91,379 142 $1,700 D’Ivoire 2 Luxembourg 89,562 143 Kenya $1,600 United Arab 143 Ghana $1,600 3 Emirates 57,744 143 Benin $1,600 4 Norway 56,920 144 Tanzania $1,500 5 Singapore 56,797 144 Zambia $1,500 United 6 States 47,084 145 Nepal $1200 7 Switzerland 46,424 145 Uganda $1,200 8 Hong Kong 46,333 145 Haiti $1,200 9 Netherlands 42,447 145 Mali $1,200 Burkina 10 Austria 39,711 145 $1,200 Faso 11 Denmark 39,410 146 Rwanda $1,100 12 Australia 39,231 Burma 13 Sweden 38,885 146 $1,100 14 Canada 38,841 146 Ethiopia $1,100 15 Germany 37,622
- 5. Introduction Technology includes all aspects of applied science for achieving a practical purpose. Technology is viewed as a means of combining four factors of production( land, labor, capital and knowledge) which increases the ability to create new product from combining these factors.
- 6. Definitions According to G. Jones And C. Hill : “Technology is the combination of skills and equipments that managers use in the design, production and distribution of goods and services.” According to R.W. Griffin (2007) :- “Technology is the set of processes and systems used by organizations to convert resources in to products or services”.
- 7. Business and Technology Business and technology are inseparable, and complementary to each other. Technology advancement increases the production, effective use of resources, and brings opportunity for upgrading business firms. Technological change leads to improved production of goods and services
- 8. Business and Technology Technology which are related to business are:- Reduced running costs Improved productivity Improved competitiveness Lower costs per unit of product Improved quality of service (e.g. speed of service) Reduced wastage
- 9. Technology and Human Factor There are 3 areas which make the effective use of technology and they are: Production, Investment, & Innovation The capability of technology revolves around its people. Managers should be skillful for full utilization of technology.
- 10. Technology and Human Factor Employee must have ability to acquire new skills. Technology can cause impact on business firm: • Shutting down of old business • Changes in occupational structure and • Displace of employees
- 11. Status of Technology in Nepalese Industrial Sector Research and Development Exports as Indicators of Technology Skill base for Technology Technology transfer
- 12. Research and Development R&D is generally dominated by universities and government research agencies Industrial sector basically classifies it as “Quality control and Production Engineering” activities Most industries are dependent on imported and low grade technologies Less focus is given to the importance of R&D Only 0.13% of GNP and GDP activities R&D is classified tax deductible by the government in theory only
- 13. Exports as Indicators of Technology Technological status of a nation can be measured by its export status Nepalese exports are mainly focused on raw or semi-processed materials Major exports in the form of finished goods include: Carpets Garments Leather Products This deficiency is primarily caused due to lack of efficiency and competitiveness
- 14. Skill base for Technology Skill base for technology can be gauged by education enrollment statistics Nepal has witnessed more than 5 decades of educational enrollment yet, enrollment ratio is minimal The nation needs Mechanical skills Electricians IT Professionals Chemical Technicians Business Entrepreneurs Yet the required level of Human capital is well below the need.
- 15. Technology Transfer The most commonly used modalities: FDI via joint ventures, technical collaboration, import of machinery and equipment, technical assistance through human assistance Other mechanisms -- through license, exchange patents, or a know-how agreement, personal contact etc.
- 16. Technology Transfer in Nepal Foreign Investment and Technology Transfer Act, 1992 The Act defines technology transfer as any transfer of technology to be made under an agreement between an industry and a foreign investor on the following matters: Use of any technological right, specialization, formula, process, patent or technical know-how of foreign origin; Use of any trademark of foreign ownership; Acquiring any foreign technical, consultancy, management and marketing service
- 18. Status of Technology Transfer (as per 2007) Number of projects with foreign collaboration No. of projects approved 250 200 150 100 50 0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 o pt U
- 19. Status… Scale of projects with foreign collaboration 1151 1200 1000 800 Numbers 600 400 199 146 200 0 Large Medium Small Industry category
- 20. Status… Category of projects with foreign collaboration Construction Energy-based 4% Mineral-based 3% 1% Agro-based 3% Manufacturing 89%
- 21. Status… Status of foreign investment projects Cancelled Closed 5% 1% Operational 27% Approved 42% Under construction 17% Licensed 8%
- 22. Science and Technology policy Nepal adopted the science and technology policy in 1989. Objective was to improve country’s S&T for the over all development and scientific creativity. Later S&T adopt new innovation and development of science and technology to increase production and productivity.
- 23. Science and Technology policy The following strategies were adopted for the sector:- • Development of technologies and services for priority areas of socio-economic development. • Fulfillment of people’s basic needs. • Qualitative development of human resources Three Year plan (2010/2013) focused on • Ensuring maximum utilization of the resources. • Developing and adopting appropriate technology through mobilization of private sector. • Developing a mechanism to conduct research and development activities.
- 24. Science and Technology policy • Contribution in the socio-economic development of people. • Encouraging universities, concerned institutions and individuals in scientific researches.
- 25. Information Technology Information technology (IT) is a branch of knowledge concerned with the development, management, and use of computer-based information systems. The term "information technology", or IT, commonly refers to computers and computer networks but is also used to encompass other information distribution technologies such as television and telephones etc.
- 26. IT policy Government adopted Information technology policy in 2000. The main objectives were: To increase employment through reaching IT among the general public To create knowledge based society To established knowledge based industry
- 27. IT in Nepal In Nepal, Mercantile Office System introduced e-mail services in 1993. Mercantile Office Systems, the first Internet Service Provider (ISP) in Nepal started its services since July 1995 Today there are about 30 ISPs in Nepal IT mostly limited to urban areas Yet due to low costs of computers nowadays, it is spreading nation wide gradually
- 28. IT in Nepal In recent years, the use of Internet has increased in the country The most web-effected areas of information in Nepal are Education, Travel, Tourism, and Media The past few years have seen an impressive growth in Internet use and web-based information dispersal in the country
- 29. IT in Nepal Today, there are about 300,000 users of Internet in the country However, the majority of the internet users are in the Kathmandu valley. Yet, it has much scope Nation wide