ORF Workshop

ORF Workshop –“S&T CHALLENGES for INDIA” on 7th May 2005

 

TS 1.1 : Global Business, Technology and Knowledge Sharing by Y.S.Rajan

There is a book by this title based on the researches by Prof.N.S.Siddharthan and the author of this article. The book traces the nature of the changing world business, the role of efficiency- seeking investments, and the emerging trends in trade of technology intensive products. The conclusions are that technology development and upgradation no longer follow the simple linear models being prevalent before (namely idea, invention, applied research, initial commercial launch etc).

Since multiple technologies confluence to make a product and also because the knowledge of the market and need of consumers are crucial to deliver the right (competitive) products and services, knowledge and technology sharing are crucial to succeed in global business. This is true for big businesses, small and medium enterprises as well as for research institutions.

The book also describes a process called Technology Intermediation, which can help accelerate the process of knowledge and technology sharing. It is shown with examples that such a process is required both for the developed and developing economies.

Based on some of the findings of the book, this article draws upon the Indian developments in technology and business. Strengths and weakness are pointed out. Certain questions are posed regarding the performance and assessment of performance by Indian research and academic institutions as well as by industries and businesses. It is believed that sincere and honest answers to these questions are vital for the future of Indian S&T systems and also for India’s aspiration to have a global standing in business. Usual approach of “more of the same” may cause greater damages than have occurred in the past.

For ease of understanding of key issues Indian technology and business systems may be divided into four categories:

Category I :  Mostly denied technologies and high tech business heavily controlled by Govts as user (or its use).

Ø     e.g. Atomic Energy, Space and parts of defence research. India adopted a single roof and a single empowered group to start the work almost at the time where developments in the world had not made rapid strides. (This is true for Atomic Energy and Space almost fully and for Defence not fully so).

Category II :  A network of huge R&D national laboratories funded by Govt (e.g. CSIR, CMTI, CPRI etc), world class academic institutions (like IIT’s, IISC’s and Central Universities) fully funded by Govt and Industrial in-house R&D labs (supported by Govt through tax concessions). Along with this network major funding Central Govt departments (like DST, DBT, DOD, MNES, Dept of Electronics now MIT) were created to fund R&D projects in a wide areas of basic and applied research and development.

This category was (is) expected to generate all round S&T based industries and businesses. These collective (?) actions were expected to make a technological –industrial revolution in India, missed during the colonial period. Also it was expected that the basic researches done under such a wide umbrella of actions, would lead to excellence in basic research (and fulfill dreams of global accolades for India Science).

Category III : Indian big businesses and medium enterprises (both in Public Sector and Private Sector) were encouraged to start major production activities in almost all sectors textiles, cement, steel, electrical equipment, electronics communication and pharma, with foreign collaboration and / or with licensing arrangements. Technology transfer was also encouraged.

It was expected that the process so initiated along with Category II and to a certain extent Category I (which was viewed with awe) would lead to technology- business leadership of India in the world and a total self-sufficiency domestically.

Category IV: A large group of small, tiny and artisanal production system (some in the formal sector as SSI’s and most of the informal sector, received a benign negligence except for various forms of tax concessions for their products. Some products were reserved for SSI, in the hope that such a protection will help them to grow strong economically and help them innovate.

A few policy statements and occasional tiny funding linked this category with category II. It was hoped that innovation will trigger. Prof.Y.K.Alagh was about the only person who gave some attention to it as S&T.

The extent of growth of domestic consumption products and even engineered products like Idli grinders presently flooding Indian markets would need to be studied. They appear to present an inherent innovative capabilities.

On the whole the author (speaker) will raise a few issues and questions regarding each of the categories with specific examples. The author had already written detailed articles / chapters on Dual Use technologies, Global business, trade, technology and foreign policy linkages, WTO and also on S&T policies at the time of liberalization. Some of it appear in his book “ Empowering Indians for the 21st Century with economic, technology and business strengths”. A few extracts from these also be read out.

Some of the crucial issues of economies of modern times (including for India) :

Ø     How to position agriculture, manufacturing and services in the right place of the global value chain (and keep moving)?

What is the role of S&T?

Ø     How to provide customer orientation and shape consumer preferences domestically and globally?

Ø     Since the product, technology, knowledge & business cycles are compressed, multiple uses for the same investments are required. Traditional categorization of dual use, compartmentalized (and often denied) technologies are losing validity.

Ø     Given the above and nothing the trends in science and technologies where confluence and interfaces are the crucial features, can our Innovation System depend in the earlier system of rigid specialization, compartmentalization, departmentalization and isolation between business and S&T?

The speaker will attempt to address these and finally there will be a few conclusions with pointers for the present and future actions. Some of it would be on firm grounds of facts (not just “virtual unrealities” our systems tend to project) and some will be hypotheses and conjectures based on author’s researches with Indian realities and global experiences, studies, experiences and reflection.

 

 

 May 3, 2005

   (Y.S.Rajan)