TECHNOLOGY ABSORPTION

TECHNOLOGY ABSORPTION:
ADOPTION:
It is 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. In other words, the needs of the buyer of technology get crystallized and the supplier makes suitable modifications in the technology being supplied so that it conforms, as far as possible, to the requirements of the buyer
ADAPTION:
l It is a phase that takes place after a technology has been adopted and put into use in production activities/facilities. 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.
ABSORPTION:
l 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.
OPTIMISATION:
l It is the effective savings in the use of material and energy consumption both in product and processes which constitute optimization of technology.
STAGES IN TECHNOLOGY ABSORPTION:
PROJECT FORMULATION:

• Prefeasibility report/project report
l Technology negotiations
l Approvals/clearances with Government
l Foreign collaboration agencies
l Funds from financial institutions
l Land Acquisition
l Clearances from State Govt. and other bodies for power etc
PROJECT EXECUTION:

l Technology Transfer.
l Design/know-how, experts, training
l Use of Indian consultants
l Procurement of equipments, components and materials.
l Payments for technology, RM, and equipments.
l Project implementation.

TECHNOLOGY ADAPTION:

l Trial runs
l Debottlenecking /rectifications
l Production based on selective imports of components/RM
l Indigenization of RM/ components, equipments.
l Adjust product/process technology to suit local conditions.

TECHNOLOGY ABSORPTION:

l Analyze and unpackaged technology
l Investigate product/process designs and technology.
l Optimize technology for higher quality and performance.
l Design; develop components/raw materials/equipments.
l Use research linkages.
TECHNOLOGY IMPROVEMENT AND UPGRADATION:

l Improve product/process designs and technology for better performance/utilization.
l Use Research linkages.
l Upgrade product/process to reach larger scales/capabilities.
Benefits of technology Absorption and up gradation
l Repeated collaborations for the same product/process are avoided.
l Acquisition of further technologies becomes selective.
l Ability is developed to unpackaged technology.
l 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.
l Technically competent groups of scientists and engineers trained in technology absorption get matured and strengthened.
l The base for technological self-reliance is enhanced.
l Product and Process cost saving can be done.
l Increase in sales and profits.

Future Thrust for Technology absorption
l Industry should attempt to obtain best available technology closest to international trends and provide R&D at the stage of project planning.
l Speedy indigenization of raw materials and components.
l Efforts for unpack aging of tailor-made equipments in the acquired technology


Suggested measures for technological absorption in Indian Industry
l The units should have their own technology policy for its acquistion, absorption and adaptation, on long-term as well as short-term basis.
l Travel grants and incentives may be considered for participation in international seminars. symposia etc. as well as for training abroad to keep abreast with the latest development in their fields
l The R&D personnel from in-house/national laboratories etc. should be involved intimately in the transfer of technology from the conceptual stage itself.
l Incentives and support should be given for prototype development and testing facilities, pilot studies etc. for adaptation, absorption and up gradation of imported technologies.
l International R&D collaborations can be encouraged
l Information about the acquisition of foreign technologies should be widely disseminated with a view to making R&D personnel aware of the needs of the industry. It enables them to formulate the programmed accordingly.
l Tax benefits and fiscal incentives may be considered for investments made in absorption and up gradation of processes/products.
l An information base for modern available technologies on global basis should be setup
l In case of Fast technologies such as electronics, foreign collaboration agreements should be of shorter durations.
l The standards for various products, components and materials need to be revised and updated on continuous basis particularly for industries like automobiles.
l A complete documentation of all the national research facilities may be compiled with regard to their activities and developments carried out by them.
l A periodical review meeting of the R&D chiefs of the industrial units to discuss technology absorption efforts may be organized.
l Incentives should be given to firms for adhering and following a faster phased manufacturing programmed as specified in the collaboration agreement.
l A time-bound programmed for absorption and adaptation of imported technology should be drawn by the company after the collaboration agreement.
l Involvement of Senior R&D personnel in negotiations and acquisition of technology.
l User’s support for development and speedy utilization of absorbed and upgraded product.
l Setting up of research advisory committees by major companies, importing high cost and complex technologies.
l Support by Government to catalyze the above efforts of industry to ensure effective and complete absorption of imported technology