Evaluation of Contributions of Technology Upgradation Initiatives towards Performance Enhancements in Small Scale Manufacturing Sector

Abstract

As global competition is increasing rapidly with changing technology and shortening of product life cycles, corporations have become more vulnerable to failure than at any time in the past. These formidable changes have left the organizations with no choice but to upgrade the existing systems, products and technologies for their survival. The external acquisition of technology in the initial stages may be desirable or even necessary in the high technology areas, but no industry can prosper in the long run unless it builds up a self reliant base for carrying out indigenization of process and product technologies. In most developing countries like India, small scale industry is still relying heavily on external acquisition of technology. The over dependence of the Indian firms on external technology acquisition have rendered their available technologies and skills inefficient and outdated. They should start managing innovation in research and development activities to develop cutting edge technologies and products. The objective of the present work is to assess the technology development capabilities of small scale manufacturing industry especially the cutting tool industry in the region. The research explores the present status of technology development capabilities of the tool industry with regards to organizational culture, policies, infrastructural facilities, investments in research initiatives, support from government and interaction with external agencies for technology upgradation. The reasons for low performance of small scale sector in the area of technological innovations have been explored. Further, the units are classified into various categories and analysis is carried out to evaluate the significance of various determinants of technology development program in improving the performance of industrial sector