Technology Acquisition and Absorption

Technology acquisitions

The various activities involved in the technology acquisition process. These are as follows:

(a) Selection of technology: The selection of technology is based on the following factors:

  • Appropriateness of technology
  • Cost-effectiveness of technology
  • Possibilities of updating
  • Environmental friendly
  • Proven utility of technology

(b) Selection of collaborators: There are many considerations involved with the selection of collaborators. These are as follows:

  • Preparation of notice inviting tenders.
  • The issue of global tender.
  • Negotiation.
  • Final selection.

(c) Finalization of agreement: Finalization of the agreement is an agreement which is reached with the party, finally selected at a price and terms and conditions settled through negotiation.


It is the process under which the various features of the technology which is the subject of transfer are suitably modified, changed or altered keeping in the view the needs of the buyer. In other words, the needs of the buyer of technology get crystallized and the supplier makes suitable modifications in the technology being supplied so that it conforms, as far as possible, to the requirements of the buyer


It is a phase that takes place after a technology has been adopted and put into use in production activities/facilities. During this stage, a number of alterations and modifications to suit the indigenous conditions are made and they may relate to the use of raw materials/components manufactured. It covers both product modifications as well as production technology changes, using indigenous skills as well as local materials.

Technology Absorption

 The various activities involves in technology absorption stage are:

  • Preparation of detailed project report
  • Interrelation and implementation of various rights and obligations of the agreement by both parties, i.e. Receiver and collaborator.
  • Project implementation at pre-established “time frame of cost”
  • Periodic evaluation of the management of technology through proper MIS.

Technology Adaptation

If the technology is acquired and absorbed successfully the next stage it to integrate the same with production infrastructure and social environment of industry which receives the technology. Integration requires the following:

  • Indigenization of components and subscription.
  • Vendor development.
  • Acceleration.
  • Financial incentives.
  • Co-ordination and co-operation.

Technology Improvement

Technology improvement depends on the continuous research and development. This is an ongoing research and development process

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