7. ROLE OF THE GOVERNMENT

The importance of the government’s role consists in making “the pulse of industry” felt within R&D a routine part of industrial activity”. While the governments want to develop technologies with all earnestness, their efforts cannot meet with success unless they were to play an active role in involving industry in the process of technology generation and specially in the process of its commercialization. Indeed, the need for government action in the technology utilization is greater than in the technology generation, which can principally be the vocation of the in-house R&D units.

Utilization of indigenously generated technologies is a long drawn out and cumbersome process, requiring a variety of measures, some of which are dependent on the government directly; others are dependent on the active participation of industry – firms and entrepreneurs – but necessary orientation and direction has to come from the government. With respect to the contribution of the indigenously generated technologies for rural development too, the operational role of the government is essential for carrying the technologies to the grass roots.

A fact which should not be lost sight of is that whereas R&D institutions need monitoring, control and evaluation in the generation of technologies, firms and entrepreneurs need stimulation, encouragement and risk-sharing in technology utilization. Moreover, various support services such as standardization and quality control, technological information, S&T infrastructure etc. are needed for technology utilization. All these have to be provided by the governments, and are dependent on their role – interventionist or catalytic, administrative or executive and direct or indirect. (See figure depicting various facets of the government role). The developing countries have, therefore, to well define the parameters of the role of government, both at the technology generation and technology utilization level.