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.

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