The document discusses the concept of technology and its importance in business. It defines technology as the combination of skills, methods, systems and equipment used to transform inputs into outputs. Technology helps businesses improve productivity, reduce costs, develop new products and access new markets. While technology adoption in Nepalese businesses is increasing, many still rely on traditional technologies due to factors like a lack of technical skills and infrastructure limitations. The document outlines policies and issues around strengthening science, technology and innovation in Nepal.

1. Environment Energy and Technology

2. Concept of Technology
 Technology is the method of transforming input into output.
 It consists of skills, methods, systems, inventions and equipments
 results in modification in product and services
 Technology includes all the aspects of applied sciences for
achieving particular purpose
 where the scientific knowledge put into practice becomes
technology.
 Technology viewed as means of combining four factors of
production- land, labor, capital and knowledge.
 It is an ability to create new things from blending of these
resources.

3.  Technology could be hard or soft
 It could be labour intensive or capital intensive
Definition:
 G. Jones and C. Hill “Technology is combination of skill and
equipment that manager use to design, production and
distribution of goods and services.”
 R. W. Griffin “Technology is the set of processes and systems
used by organizations to convert resources in to products or
services.”
 Whether the business is manufacturing firms, advertising
agencies, bank, hospital, educational institution or a trading
house, it will use some sort of technology to transform its input

4. Business and Technology:
Business and technology are closely interrelated and
inseparable.
Both are complementary to each other. One cannot exist
without other.
 Society expects innovation and discoveries from business
firms for better products and improved services.
 Business firms generally try to meet these changing needs of
the society by applying new technology in the process of
product development and product modification.

5.  improvement in competitiveness, production process and management skill
today depends on technology
 Improving and upgrading technologies are necessary to fulfilling the ever
increasing requirement of business.
 Technology at present is major item of international trade.
 It is a major export item for many developed countries.
 Technology influences business by bringing about changes in job, skill, life
style, product, production methods and process.
 Automation, computerization, informatics, new materials and artificial
intelligence have all influenced business.
 Industries are getting hi-tech.
 Existing business has started entirely new system of business with the help o
technology. Business that cannot cope with technology change doomed to

6. Following are the some of the areas of technology which are
relevant to business.
 Method of manufacturing a product
 Improvement in product design and manufacturing process
 Reduction of waste
 Reduction of manufacturing cost
 Using new raw materials
 Using eco-friendly materials
 Improving product quality and reliability
 Introducing new products and services
 New methods of delivery and distribution
 New ways of management control and information
 E-business technology

7. Human factor and technology
 In the management and operation of technology the role of human factors is
very crucial.
 It is the people who handle and manage the technology.
 The technology, capability of a nation revolves around its people.
 Technologies are only means for people to effectively utilize their
knowledge.
 The skill level of people in a country decides the absorption and utilization of
technology.
 Thus the quantity and quality of technical manpower available are crucial
factors in determining the technological capability.
 There is the great demand for skilled technicians, managers, entrepreneurs
and workforce who could handle and manage the technology employed.
 Technological changes have serious impact on total industrial sector and job
market of a country.

8.  Old industrial system replaced by new system because of
technological development.
 Employees are sometime displaced due to introduction of new
technology.
 They are required to acquire new skills because of change in
technology.
 Their inability to acquire new skills as demanded by technology makes
them outdated.
 Management and top level executive also require for acquisition of
new technology to develop their professional skills and respective
areas of specialization.
 Advanced technology know how gives ample opportunity to deserving
and preserving professionals.

9. Present Status of Technology adopted by Nepalese
Business
Technology can be
Manual technology
Mechanized technology
Automated technology
Computerized technology
Robotized technology

10. Present level of technology adopted by Nepalese
business can be categorized mainly in traditional
technologies.
 They still dominate the business and industrial
sector of Nepal.
Nepalese posses good technical knowhow of
traditional technology in different fields like
metallurgy, pottery, architecture, construction,
textile, manufacturing, dyeing and printing,
paper manufacturing, agriculture, medicine etc.

11.  The industrial and business sector in Nepal is presently in the
process of transition
 Because of liberalization, the private sector has enjoyed fairly
free access to modern equipment and knowhow from outside
 The number of industry using modern technology in bakery,
textiles, medicine, soap, vegetable oil, printing, plastics, metal
and sugar are increasing
 Tele-communication and internet providers are using satellite
based technology.
 Health related service industries are using highly sophisticated
technology
 in Nepalese business and industrial sector, it still skill base for
modern technology is low
 In highly skilled job mostly foreign laborers are used

12.  Still labour intensive technology is used in Nepalese business sector
 Govt’s expenditure in research and development for technology is
very less
 Nepalese export products are mainly in the form of raw material, it
lacks competitiveness in different products which is sig of
technological backwardness
 Despite of these significant changes most of Nepalese business
firms and industries, companies a small and medium enterprises
have not had reached even the level of efficient mastery.
 Nepalese business continue to use technologies at low levels of
technical efficiency, lagging well behind international frontiers of
productivity
 Nepalese business generally focuses on surveying local market with
low price and low quality products, investing little in training in
upgrading process or product technologies.

13. ISSUES
 Poor public understanding of Science and Technology.
 Lack of coordination and cooperation between science and technology
organisations
 Less priority for R&D and state funding in S&T very low.
 Lack of integrated long term master plan for the development of science and
technology
 Gaps between policies and practices and between planning and performances
 Technology development and transfer not institutionalised.
 Lack of economic development: No funding in R&D from the industrial and
private sectors.
 Lack of minimum research facilities: Brain drain.

14. Science and Technology Policy 2005
Objectives
 To enhance national capability by developing and utilizing knowledge,
skill and competence in the field of Science and Technology
 To contribute in the reduction of poverty by improving economic and
social condition of the people at large through sustainable use of
natural resources and means and conservation of the environment
 To take the nation in competitive advantage by utmost development
of Science and Technology
It focuses on:
 Infrastructure development
 Human resource development
 R & D

15. Vision:
 To build the country as a developed, To build the
country as a developed, dynamic and prosperous state
by dynamic and prosperous state by raising the living
standards through raising the living standards through
the appropriate development and use the appropriate
development and use of science and technology.

16. Strategies
 To institutionalize the participation of stakeholders in the
development o f s&T
 To mobilize available resources in maximum extent in S & T
sector
 To encourage Universities, science institutes and individuals
involved in research works and produce high level scientists by
giving priority to S&T subjects
 To enhance the quality of hydrology and meteorology through
the use of modern technology
 To integrate R&D works with competitive capacity
development in the S&T sector.

17. Policies
 To use science and technology as a powerful means to increase
production and productivity of the country.
 To create an environment for the maximum utilization of knowledge and
skill of science and technology available in regional and international
arena by promoting mutual cooperation with the bilateral, multilateral,
regional and international organizations.
 To promote participation of private sector in the development of science
and technology.
 To develop and mobilize skilled human resources .
 To extend the development of technology to the rural levels.
 To create a conducive environment to maintain high morale of the
scientist and technologists and minimize the brain drain.
 To strengthen the organization’s capacity involved in research

18. IT Policy 2010
 Vision
 "To place Nepal on the global map of information technology
within the next five years.“
 Objectives
The information technology policy shall be formulated to achieve
the following objectives:
 To make information technology accessible to the general
public and increase employment through this means
 To establish knowledge-based industries
 To establish knowledge-based society

19. Strategies
 The govt shall act as a promoter, facilitator and regulator
 Priorty to R&D and extension of IT with private participation
 Develop competent manpower with public private
participation
 Encourage foreign investment for IT development
 It shall be used to assist e- governance
 It industries shall be promoted
 Healty and competitive atmosphere among It service
providers
 IT Education shall be incorporated in academic curriculum
from school level

20. policy
 To declare IT sector as priority sector
 To adopt one window system for the development of IT
 To prioritize R&D in the field of IT
 To encourage private investment in IT sector
 To spread internet facilities in villages
 To computerize the system in all govt offices
 To use IT to promote e-commerce, e-education, e-health to
transfer technology in rural areas

21. Impact of technological environment on the
efficiency and competitiveness of Nepalese business
 Technological environment has revolutionized the ways Nepalese companies
and business firm
 Even small business firms can implement technology and level the playing
field with larger organization.
 Business organization use computers, servers, websites and personal digital
product to develop competitive advantage in economic market place, which is
the great impact of technological environment.
 Technological environment guides the business owners in implementing
technology in their planning process and this allows owners to create
operations using best technology available.
 Technology is able to constantly improving products and adding new features
on it.
 Technological environments also informs the business firms regarding the
technology adopted by rival companies.
 This may force the companies to upgrade their business to keep up with them

22.  Technological environment has immense impact on research
and development activities of business firms that may impose
or enhance the features effectiveness of product or services.
 Technological environment helps the business firm to
understand the changing attitudes and the expectation of
customers.
 Nepalese business firms are able to engage in efficient
production which lowered the unit cost of production and
introduce new and better features or new innovation with the
help of technology.
 Technology has created secure environment for maintaining
sensitive business or consumer information in Nepalese
business.

23.  Common methods allow companies to saturate the economic market
with their message.
 Business firms and industries increase their employee’s productivity
through the use of technology.
 Technological environment allow Nepalese business to reach new
economic market rather than just selling consumer goods and services in
local market.
 Nepalese business can reach in international or globalized market.
 Speed of production in Nepalese business notice after the application of
modern technology.
 Technology even brought accuracy in the production process.
 Because of modern technology, business is able to meet the requirement
of WTO, BIMSTEC and other regional and world trade organization

24. Technology Transfer Issues
Introduction
 Technology transfer is the use of knowledge and transfer of knowledge
 Transfer does not merely mean movement or delivery
 transfer can only happen if technology is used.
 it is application of technology and considered as process by which
technology developed for one purpose is used either in a different
application or by a new user.
 Technology transfer is usually considered as dissemination of
information, matching technology with needs and creative adaptation of
items for new uses.
 In many LDCs, the concept of technology has to be made clear among
concerned stakeholders through organizing workshops and seminars.

25.  As part of the modernization drive the country has opened to direct
foreign investment and other types of technology transfer from abroad.
 Legally speaking the only law that governs technology transfer (from
foreign countries) in Nepal is the Foreign Investment and Technology
Transfer Act 1992, which has laid down the regulations and rules
governing foreign investment and technology transfer.
 This 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:
 a. Use of any technological right, specialization, formula, process,
patent or technical know-how of foreign origin;
 b. Use of any trademark of foreign ownership;
 c. Acquiring any foreign technical, consultancy, management and
marketing service

26.  Most of the technology transferred to Nepalese industries in the past were in the form of
turnkey plants to the state sector, financed through international aid and/or loans
 In the latter years, many large and medium-scale industries have been established with
foreign collaboration in the private sector as well. This has taken place through a variety of
mechanisms such as direct foreign investment via joint ventures, technical collaboration,
import of machinery and equipment, technical assistance through human resources, etc.
While these are more formal modes of technology transfer, a lot of technology gets
transferred informally through books, journals, promotional literature and personal
contacts.
 As many Nepalese industries, particularly in the small and cottage industry sector, use
Indian machinery and equipment, the informal mode of technology transfer is more
prevalent in such industrial units.
 It is difficult to find out, thus, not only the level and extent of informal technology transfer,
but even the numbers of such units, as the details regarding technology transfer are not
found in the government records.
 The only data available relating to technology transfer agreements are of the companies for
which permission is sought under Foreign Investment and Technology Transfer Act.

27. Organizations involved in technology transfer and
development
 Ministry of Science and Technology
 Nepal Academy of Science and Technology (NAST)
 Research Centre for Applied Science and Technology (RECAST)
 Nepal Agricultural Research Council (NARC)
 Technology Transfer and Development Project (TTDP), Ministry
of Industry, Commerce and Supplies

28. Problems and issues of technology transfer in Nepalese
Context
 There are a number of problems that hinder technology transfer and development
in Nepal. Particularly important in this context is the information about the
requirements for foreign technology in Nepalese industry and the problems
associated with the transfer process, such as options, conditions, absorption and
diffusion.
 1. Lack of technology assessment mechanism: there is a lack of
appropriate mechanism as well as human resources required for
technology assessment and about the trend of technological change
 2. Lack of technological infrastructure: Adaptation of imported
technology and innovation of new technology is not happening in
Nepalese industrial sector due to lack of R&D facilities
 3. Lack of technical manpower : lack of adequately trained manpower
for operation and maintenance of imported machinery

29.  4. Unavailability of spare parts
 5. Policies and plans: FITTA seems to promote foreign
investment rather than technology transfer. Except for the
definition, the Act does not spell out about technology
transfer process and facilities which could be instrumental in
transferring and developing technology in the country.
 6. Financial: Technology transfer and development is an area
where lot of investment is needed because it requires
adequate infrastructure and long duration to develop and test
the technology

30. Natural environment in Nepal:
 Business activities are closely linked with the natural forces.
 In Nepal the natural environment is the source of many inputs
needed by business to produce output.
 Natural environment also affect need and life style of people.
 Nepal is a mountainous country. It cover an area of 147181
square k.m. Major portion of area consisting of mountain and
hill and remaining is occupied by flat land or tarai.
 In general the altitude of land is increase form south to north.
The altitude is rise form 55 meter above sea level in tarai to
8848 m in the Himalayas.

31.  Nepal extended about 885 km from east to west and it has
average north to south width is 193 km.
 Nepal is land locked country between china and India.
 Nepal has access to sea via India.
 The rugged nature and terrain has constrained the
development of transport facilities. This has increase the cost
for business operation.
 Nepal has almost all climatic condition in the world. The
biodiversity differs form region to region.
 Natural environment is the source of food supply, energy,
recreation, medicine and industrial input.

32. Components of Natural environment of Nepal are:
Forest: it is source of all wood based industries
like paper, furniture. Medicinal herbs get
obtained from forest. Forest provides food and
shelter to birds and animals.
Water:
Minerals:

33. Energy situation in Nepal
 Energy is important for business operation.
 The sources of energy are traditional and commercial.
 The traditional sources consist fuel, wood, agricultural
wastage and animal dung. They fulfill house hold energy
needs.
 Commercial sources consist electricity, petroleum, coil etc.
they derive the engine of modern economy.
 The structure of energy consumption in Nepal is heavily
oriented towards the traditional resources.

34.  Nepal has a critical shortage of energy. Demand of energy
in Nepal is continuously increasing in a rapid rate as a
result of rapid population growth and industrial expansion
but energy production is still lagging behind.
 For economic growth and all-round development of a
country more electricity plants are needed.
 Nepal is 100% depend on imports for petroleum product.
Under an agreement India provide rapidly petroleum
product.
 The consumption of petroleum products is continuously
increasing.
 The demand for diesel, kerosene and L.P. Gas has
increased significantly increased in Nepal.

35. To solve this critical shortage of energy some potential sources of
energy are there in Nepal. A part form hydro-power.
 Coal : Dang
 Geothermal energy: It can be seen in the from hot spring
found in different places. Mugs district, sindupalchok,
dolakha, jumla
 Wind power: jumla, dolpa, mustang
 Solar energy: all the area of Nepal.
 Bio-gas energy: The wastage material are utilized in bio-gas
plant to produce energy.

36. Energy Management Issues in Nepal
Dominance of forestry sector
Far below exploitation of energy sources
High dependency on Petroleum products
Poor access of the rural people
Expensive energy