2.1 Orientation and Framework of Policies

The policies governing utilization of indigenous technologies also flow from the aims, objectives, functions and responsibilities of the institutional mechanism and various promotional organizations that have been established for promoting utilization of indigenous technologies. Often promotional schemes and regimes of incentives have been provided for encouraging industry to generate and utilize indigenous technologies. Furthermore, regimes of intellectual property rights in various developing countries safeguard the rights of the technology generators. The administration of intellectual property rights has also the goal of promoting utilization of indigenous technologies, through affording rewards for the innovation.

At the outset, it would not be sufficient that a country makes any choice that is too broad to allow the concentration of efforts and resources. For example, if a country opts for selectivity in industrialization in a few strategically important industries, as against a general preference for efforts in the manufacturing sector, it would be more advantageous. The other important criteria in fixing this borderline is that a country needs to be inward-looking in some areas i.e. local technology for the local market and outward-looking in some other areas i.e. improved technology (local or imported and assimilated) for the international market. Another strategy practiced by the early-developers in their initial phases of development has been import-substitution. However, it has been observed that import-substitution, coupled with protection against the international competition is not healthy in the long run. Therefore, if a country extends enough protection to the local industry in a certain sector, the subsidies need to be withdrawn gradually. The government's intervention, in itself, should be a dynamic process and should always be subject to revision and modification.

There has often been a debate whether the governments need to be a mere facilitator, as had been the case of the early developers, or it should adopt an interventionist approach. Experience has shown that, for economies where the markets cannot take care of their own and the (input) prices are highly distorted, state intervention is essential to ensure access of resources to all concerned. Experience is further suggestive of the fact that, before a country acquires a degree of technological independence, it has to undergo a long period of dependence on the imported technology. Concerted efforts to adapt, assimilate and indigenise the imported technology call for the allocation of efforts and resources in a planned and judicious manner, which, in turn, calls for a policy intervention by the government.

Japan : A successful integration of judicious technology-importation and indigenization efforts in the Asian region is demonstrated by the case history of Japan. The Japanese approach to indigenous technology development demonstrates how absorption, assimilation and adaptation of technologies (acquired from abroad) could in continuum prepare the ground for building up indigenous technological capabilities. The Government of Japan, through the Ministry of International Trade and Industry (MITI), had been instrumental in initiating efforts to promote research through funding of specific programmes and establishment of institutes in specific disciplines that work in close cooperation with universities and industry. The collaborative research was promoted through the institution of sub-contracting or keiretsu, as popularly known. The tremendous growth of auto parts, textiles and software industries owes much to keiretsu relationships among various technology-support institutions.

After the initial phase of adopting this followers' strategy was over, there was a need to move to the leader strategy. Then, the Government started funding large, even risky projects, such as development of high-performance computers and power-generators through research associations. Some of the recent efforts in this respect include establishment of the Research and Development Programme on Basic Technologies for Future Industries, administered by the Japan Key Technology Centre. This Programme, launched by MITI, partially finances government-business-academic cooperation. There are different national technical institutions, administered by the Agency of Industrial Science and Technology (AIST) under MITI. They are engaged in R&D, promote joint R&D with universities and private firms, and often organize technology-research associations. MITI has also identified about fifty locations for the development of 'technology-parks' for future industries. The New Energy and Industrial Technology Development Organization (NEDO), a public organization pursuing basic and advanced R&D in industrial technology, has built up large-scale facilities, with the private sector, and conducts international joint research.

Korea : The Republic of Korea (ROK) has emphasized the technology acquisition and development under the imperatives of modernization. Research and development efforts are of relatively recent origin in the ROK but, due to the momentum and success gained in the recent decades, the country is laying emphasis on promoting (i) in-house R&D in the private sector, and (ii) national R&D projects in collaboration with industry.

The Ministry of Science and Technology of the ROK initiated programmes of cooperative R&D for the rapid utilization of the research results in government-sponsored research institutes. Various schemes and incentives were devised to promote cooperative programmes between government research institutes and industry. Under the cooperative research programmes, new technologies were acquired by private firms, in collaboration with the government research institutes. Concerted efforts in the assimilation of imported technologies have led to successful adaptation of these, thereby increasing the chances of better utilization. The most important advantage for industry in establishing such types of vertical linkages with the research institutes is the enhancement of technological capabilities, as against the access to certain markets in case of conventional horizontal linkages with the suppliers of technology.

The different strategies for development being pursued in various countries have been the driving force in setting priorities for utilization of results of indigenous research. Development strategies, such as "growth led export" in India, "demand-pull" approach in the Philippines, technology-led development in the ROK (as referred to earlier), export-promotion strategies in Pakistan, etc. are but a few examples of these.