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MS-58: Management of R & D and Innovation

ASSIGNMENT
Course Code : MS-58
Course Title : Management of R & D and Innovation
Assignment Code : MS-58/TMA/SEM-II/2017
Coverage : All Blocks
Note : Attempt all the questions and submit this assignment on or before 31st October, 2017 to
the coordinator of your study center.
1. (a) Discuss the various measures for determining the benefits for technological innovation.
(b) In what R&D performs dual role? Explain with examples based on your experience/study.
2 (a) Elaborate your understanding about market oriented product development method.
Compare it with the traditional method.
(b) How can the development process be reengineered? What elements are required to reengineer
the process?
3. (a) What could be different types of approaches used for R& D budgeting? Which approach in
your opinion would be most desirable?
(b) A technology subjected to portfolio analysis on technology portfolio falls under head Hold.
What R&D inputs can shift this technology to Build?
4. (a) What do you understand by organisation culture? Is it possible to influence the culture of
an organisation?
(b) Describe in detail organisations related with R&D under the Central Government.
5. (a) Discuss the salient features of the Technology Policy of India. What have been the
achievement and failure of the technology policy?
(b) What are the shortcomings in our approach to commercialisation and technology transfer
from laboratory to industry?
6. (a) What is intellectual property rights? What are TRIPS? Discuss major differences between
Indian Laws and TRIPS.
(b) What is GATS? How can it facilitate access to technology and technical information for
developing countries?
Answers
1. (a) Discuss the various measures for determining the benefits for technological innovation.
Ans.: Innovation is often also viewed as the application of better solutions that meet new
requirements, unarticulated needs, or existing market needs. This is accomplished through more-
effective products, processes, services, technologies, or business models that are readily
available to markets, governments and society. The term "innovation" can be defined as
something original and more effective and, as a consequence, new, that "breaks into" the market
or society. It is related to, but not the same as, invention. Innovation is often manifested via the
engineering process.

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Innovation has long been recognized as an important driver of economic growth. Most empirical
research and surveys of firms show that innovation leads to new products and services that are
higher in quality and lower in price. Measuring innovation is an important issue, as business
growth and profitability in the knowledge age depend on innovation. Continual acceleration in
innovation will sustain revenue growth, which will then fuel more innovation. Therefore,
sustainable growth requires sustainable innovation, which requires that innovation be
institutionalized and its output made predictable. Sound policy analysis and decision-making also
requires credible, timely and relevant measurements as well.
The innovation is necessary to sustainable growth and successful operation of the organization.
In the modern world, the innovation has very critical importance in performance improving.
Historically, the aim of strategic alliances is to improve the performance of firms and the matter
is done by risk sharing and costs reducing. Today, companies (firms) try to gain superior
performance by developing new products, processes and services with the help of partners. The
innovation is quickly turning in to a key factor to survival and performance of companies as a
result of gradual evolution of a competitive environment.
Generally, the organization performance is a first element which affected by technology
innovation. Performance means the form or quality of function. Therefore, organizational
performance is an overall structure that indicates the form of organizational operation. This study
tries to investigate the effect of technological innovation on these units by identifying different
parts of performance in an organization.
The term of technologic innovation is used to a new technology or technologic product or a
completely promoted product which is provided to market in order to business deal.
Technologic innovation is the process of converting an idea into a new good (product or service)
or a new and completely developed process. It is a complex set of activities which convert ideas
and knowledge into physical reality and real world applications.
That involving users in a new technologys design phase boosts user satisfaction is quite well
known, but the proper extent, timing, and type of user involvement will vary greatly from
company to company. For example, software developers in an electronic office equipment
company established a user design group to work with developers on a strategically important
piece of applications software when the program was still in the prototype stage. Prospective
users could try out the software on the same computer employed by the programs developers.
The extremely tight communication loop that resulted allowed daily feedback from users to
designers on their preferences and problems. This degree of immediacy may be unusual, but
managers can almost always get some information from potential users that will improve product
design.
Technological basic or fundamental innovations produce new markets and new industrial
branches for a new product. Such an innovation is also described as a radical or disruptive
innovation. An improvement innovation (also called an incremental, sustaining, sequential or
complementary innovation) would lead to an improved product over its ancestor in terms of
quality, reliability, ease of use, environmental protection, raw material use, labor cost, and so on.
It may also include the application of new and better production processes or techniques that
allow old or new products to be made more reliably, of better quality, or simply in larger
quantities, or at a lower price. Trade secrets, utility models/petty patents and patents are relevant
for protecting, managing, exploiting and leveraging both basic and improvement innovations.

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(b) In what R&D performs dual role? Explain with examples based on your experience/study.
Ans.: Entry and exit of firms are important aspects of industrial change and are closely related to
innovations, both in terms of product and process innovations. This paper will discuss the role of
R&D in exit and entry processes. The theoretical debate regarding this issue boils down to the
question if industries with high investments in R&D have lower or higher entry and exit rates.
An entry barrier approach, as suggested by early theoretical contributors such as Bain, (1956)
and Yip (1982), would suggest that R&D works as a barrier to entry, and therefore entry and exit
should be lower in R&D intensive industries. Empirical evidence and alternative theoretical
models as suggested by, for example, Acs and Audretsch (1989) and Geroski, (1999) conclude
that the issue is not that simple and that innovation can be an important way for new firms to
compete with incumbent firms. Therefore innovation instead could be expected to stimulate
entry.
New product design and development is more often than not a crucial factor in the survival of a
company. In a global industrial landscape that is changing fast, firms must continually revise
their design and range of products. This is necessary as well due to the fierce competition and the
evolving preferences of consumers. Without an R&D program, a firm must rely on strategic
alliances, acquisitions, and networks to tap into the innovations of others.
A system driven by marketing is one that puts the customer needs first, and produces goods that
are known to sell. Market research is carried out, which establishes the needs of consumers and
the potential niche market of a new product. If the development is technology driven, R&D is
directed toward developing products to meet the unmet needs.
As global competition intensifies, research and development (R & D) organizations need to
enhance their strategic management in order to become goal-directed communities for
innovation and allocate their resources consistent with their overall R & D strategy. The world
pharmaceutical market has undergone fast, unprecedented, tremendous and complex changes in
the last several years. The pharmaceutical industry is today still one of the most inventive,
innovative and lucrative of the so-called high-tech industries. This industry serves a dual role
in modern society. On one hand, it is a growing industry, and its output makes a direct
contribution to gross domestic product (GDP).
Some companies may be strong in idea generation and selection, but they often miss the
subsequent stages. Due to failures in project development and portfolio management, they are
unable to focus, thus taking on too many projects at a subcritical level. Other companies
effectively manage project development and use sophisticated R&D portfolio techniques, but
have a rather weak track record for turning completed projects into growing business units.
Strong launch and business scale-up capabilities are just as important as excellence in R&D and
product development. All three types of competences described by the shaded boxes in the upper
part of Fig. 3 need to be developed and implemented simultaneously. Excellence in intra-
corporate innovation management requires managing the full cycle of idea generation and
selection, R&D project development and portfolio management, as well as a systematic business
development and scale-up process.
The most admired innovation performers have implemented an integrated innovation process as
an effective routine. Stage-gate processes and firm-specific innovation management routines
have been developed extensively over the last ten years. These techniques have often become

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standard operating procedures for many companies and are highly promoted by many
management consulting firms.
Top performers in innovation are those corporations that manage a persistent stream of new
products and services over a longer period of time. They often push the frontier and are
considered innovation leaders in their industry. However, the balance between financial
performance indicators and innovation-oriented investment projects needs to be mastered.
Overstretched R&D budgets can be as bad as underinvestment in new product development.
Unfortunately, there are not many systematic studies on the relationship between R&D
investment, corporate growth and financial performance. Some specialized consulting companies
as well as university-based research centers have developed assessments of corporate innovation
performance, however these are often incompatible with respect to the chosen evaluation
technique.
Standard setting and R&D activities must be seen as strongly interrelated activities. R&D project
selection should be based on criteria such as likelihood of addressing the winning standard.
Successful innovators are thus often forerunners and opinion leaders in informal as well as
formal standard-setting consortia. Those who influence winning standards for world markets will
attain a much higher market potential and larger sales volumes and will benefit from economies-
of-scale, thus enabling themselves to concentrate expensive product development projects on
highly elastic markets allowing for a much higher return on investment.
2 (a) Elaborate your understanding about market oriented product development method.
Compare it with the traditional method.
Ans.: Market orientation is a company philosophy focused on discovering and meeting the needs
and desires of its customers through its product mix. Unlike past marketing strategies that
concentrated on establishing selling points for existing products, market orientation works in
reverse, attempting to tailor products to meet the demands of customers. In essence, market
orientation can be thought of as a coordinated marketing campaign between a company and its
customers.
A marketing orientated approach means a business reacts to what customers want. The decisions
taken are based around information about customers needs and wants, rather than what the
business thinks is right for the customer. Most successful businesses take a market-orientated
approach.
Most markets are moving towards a more market-orientated approach because customers have
become more knowledgeable and require more variety and better quality. To compete,
businesses need to be more sensitive to their customers needs; otherwise they will lose sales to
competitors.
Take the current global car markets; the idea that car manufacturers can create a product and sell
its features to the eagerly waiting buying public is no longer an option. With an increasingly
global economy and more and more choices for consumers, companies must be willing to adapt
their market orientation to stay competitive.
Use market orientations when you want to understand, anticipate and satisfy your customer
needs. You may already be operating somewhere in-between orientations. Companies can be
anywhere on the spectrum as well as having different products at different orientations.

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The marketing orientation, or marketing concept, emerged significantly in the latter half of the
20th century. Companies with a marketing orientation make the needs and wants of customers a
primary driver of business decisions. This is different from the previously popular production
orientation, in which quality and efficiency of production were key strategic points.
By making customer needs a primary focus, companies will more likely develop products that
match up with the needs of the customers. This means customers will experience more
satisfaction with the product, which ultimately increases the likelihood of repeat purchases and
brand loyalty. With an ongoing customer focus, companies can also make adjustments over time
and will look to the market to guide product improvements and upgrades.
By adopting the marketing concept, companies have all functions aligned with the strategic
vision of meeting the needs of customers. This helps define the role of employees more clearly.
Marketers must perform diligent research to uncover needs and convey messages that explain
benefits. Production should focus on fine-tuning products to meet the needs of customers.
Support and service should have openness to customer feedback to report back to production and
research. Company leadership must set the tone by making customers the priority.
When companies have a good understanding of what the market needs or wants, they have better
ability to market effectively to them. Marketers research the market well to understand not only
what is needed, but how to convey messages that clarify how their products align with those
needs. Familiarity with the market allows marketers to build emotionally impacting appeals into
ads and generate more business.
Consistently understanding and delivering what the marketplace wants leads to long-term
profitability. Companies can turn one-time buyers into repeat customers, with an ultimate goal of
developing many loyal customers. Loyal customers buy more frequently and in larger volumes.
They are also less susceptible to competition and more willing to pay higher prices. All of these
business benefits mean the company has much better ability to remain viable and successful as
long as it retains the marketing concept.
Traditional marketing is an umbrella term that covers the wide array of advertising channels we
see daily. These may include print media, billboard and TV advertising, flyer and poster
campaigns and radio broadcast advertising. They are not necessarily outdated, however, research
has shown those companies that have abandoned simply using these channels, and adopted
contemporary marketing channels proposed in this article, have remained prosperous and in fact
seen an increase in leads, sales and traffic to web content.
Traditional marketing theories include Ansoff's Matrix, a theory that proposes products/services
fall into one of four categories depending on the market and the product released. New Product-
New Market is considered as diversification. This theory recommends that businesses should try
to diversify their product portfolio so as to spread risk amongst their product range. An example
of this would be when apple created the first iPhone released in 2007. This product was new and
introduced into a new market. Apple soon reaped the benefits of introducing this hugely popular
phone. Their product range grew from accommodating for designers on the Apple Mac, to
mobile devices, tablet devices, watches and beyond.
Another marketing theory that's considered to be traditional is the marketing mix. Made up of the
7 P's. These include product, place, promotion, price, packaging and positioning. All these

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components, when combined, create a solid marketing proposal. However this theory as well as
Ansoff's, can be drastically improved with the use of contemporary marketing strategies.
Traditional Marketing seeks to pull customers to a product, whatever the cost. It is, for this
reason, considered to be fairly outdated as it does not consider the customer they are selling to,
more the market that the company operates within. There are however channels that have
developed from traditional marketing, including digital, that aim for the same goal, however, use
more subtle and approachable mediums so as to capture their target audience. This may include
Pay-Per-Click Campaigns, social media posts, search engine optimisation and email marketing.
(b) How can the development process be reengineered? What elements are required to reengineer
the process?
Ans.: The term reengineering suggests that something has already been developed and is being
re-developed. In most businesses, change to a pre-existing process happens relatively slowly and
incrementally. Within the context of BPR however, the most modern tools are put to use in a
way that uses them from the ground up. The fundamentals of already existing processes, ideas,
and designs are rethought.
Business Process Reengineering involves changes in structures and in processes within the
business environment. The entire technological, human, and organizational dimensions may be
changed in BPR. Information Technology plays a major role in Business Process Reengineering
as it provides office automation, it allows the business to be conducted in different locations,
provides flexibility in manufacturing, permits quicker delivery to customers and supports rapid
and paperless transactions. In general it allows an efficient and effective change in the manner in
which work is performed.
Business processes are characterized by three elements: the inputs, (data such customer inquiries
or materials), the processing of the data or materials (which usually go through several stages
and may necessary stops that turns out to be time and money consuming), and the outcome (the
delivery of the expected result). The problematic part of the process is processing. Business
process reengineering mainly intervenes in the processing part, which is reengineered in order to
become less time and money consuming.
Reengineering an organization is simply the process of reviewing all the different levels of an
organizations way of doing business and considering how to improve things. The goals of
reengineering include increased company profits, improved competitive advantage in the
marketplace and enhanced public image. Reengineering requires an organization to look closely
at its strengths and weaknesses, ask difficult questions where necessary and make changes for
the better of the organization.
Features of reengineering an organization include several important elements. For one,
reengineering cannot proceed without the full support of a companys upper management. With
managements approval, those responsible for reengineering must develop a clear plan of review
and a vision for what the results will yield. Reengineering is also known for using information
technology to forecast a company's goals and create the necessary databases and networks it can
use to create smooth business process.
Reengineering an organization offers a number of benefits for overall productivity. The
reengineering process identifies elements of an organization that are creating costs with few

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benefits and makes necessary adjustments. In some cases, these adjustments are changes to the
way a department does business; in other cases, these adjustments require layoffs.
Despite its recognized benefits, the process of reengineering an organization has come under
criticism. For one, reengineering has resulted in large-scale layoffs within a number of
organizations, leaving companies in better shape but fired employees with few options.
Additionally, reengineering focuses on the lower-level departments of an organization but often
leaves the upper management intact, failing to take into account the problems that might be
originating with upper management.
Pros and cons aside, reengineering has produced verifiable results for a number of large
companies. The computer company Dell has used elements of reengineering since the 1990s, and
it attributes much of its long-term success to its recognition of the need for ongoing
reengineering. Additionally, Procter and Gamble and American Airlines have both applied
reengineering techniques after periods of severe financial problems and have seen improvements
in fighting back debt and regaining profits.
The reengineered process and supporting procedures:
Must support the mission and principles of the organization and be oriented to the
customer.
Must not be oriented toward short-term objectives and actions at the expense of the long
term.
Must be oriented towards enterprise-wide objectives rather than more limited
departmental or program objectives.
Must establish consistency with other business processes, policies and procedures.
Should be established to promote desirable behaviors rather than be a reaction to
relatively infrequent problems or situations.
Must be straight-forward, simple, unambiguous and easy to administer.
Should encourage improvement and innovation rather than defensive behaviors.
Should be based on assumption of responsible behavior and trustworthy employees rather
than extensive controls that diminish employee pride and self-esteem.
Should diminish barriers between people, groups of people, and departments and should
promote teamwork.
Should reflect performance measures and accountability that are within employees,
departments, or companys control.
Should foster action and decision-making at the lowest competent level.
Should address consideration of total cost of actions, not just limited costs reported by the
accounting systems.
Should reflect the minimum of communication and coordination required for actions and
decisions, but not limit communication and coordination to narrow procedural
boundaries.
Should not cause extra work or costs for a problem that rarely occurs.
Should avoid redundant efforts across the organization.
Must be consistent with regulatory and contractual requirements.
Should minimize non-value-added activities.

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3. (a) What could be different types of approaches used for R& D budgeting? Which approach in
your opinion would be most desirable?
Ans.: Many in the public think of R&D as something that only big businesses undertake,
plowing billions into huge labs, vast testing fields, wind tunnels, and crash dummies flailing
around as autos are crashed into walls. R&D is associated with the pharmaceutical industry,
miracle cures, laser eye surgery, and super fast jet travel. To be sure, a vast amount of the money
expended on formal research is expended by large corporations -- often on relatively trivial
improvements of products already doing quite a good job -- and by government on weapons
systems and space exploration. The glory and the power thus displayed before our eyes on
television fail to remind us that the crucial research and development on which much else is
based has been -- and continues to be -- the work of small businesses and entrepreneurs.
R&D is an important means for achieving future growth and maintaining a relevant product in
the market. There is a misconception that R&D is the domain of high tech technology firms or
the big pharmaceutical companies. In fact, most established consumer goods companies dedicate
a significant part of their resources towards developing new versions of products or improving
existing designs. However, where most other firms may only spend less than 5 percent of their
revenue on research, industries such as pharmaceutical, software or high technology products
need to spend significantly given the nature of their products.
n, horizontal value chain and internal value chain. The core competitiveness of hi-tech
enterprises is the comprehensive competition ability to R&D as a starting point. An R&D
activity directly bear the value creating function, is important value-added enterprises and their
products. R&D budgeting is an important part of management of R&D of high-tech enterprises,
determines the development effect of budgeting. The traditional budgeting is profit oriented, to
cost control as the objective, the premise of management is to have a reasonable, accurate
standard costs, according to this standard to the implementation of budgeting. However, the
management plan for the R&D budget and there are obvious defects (Shank and Govindarajan,
1993). First of all, for how the strategies reflect not clear in the R&D budget, may cause the
enterprise strategy and R&D budget does not coordinate; secondly, due to the various links of
R&D activities of value creation is not analyzed, R&D resources allocation may result in
unreasonable, significant investment, output of small does not meet the business objectives
phenomenon of some R&D activities. These budget and enterprise value creations from the
situation not only make the budget function failure and greatly reduce the R&D activities and
economic effect. R&D budgeting is used with multiple methods to evaluate the cost and resource
demand behavior.
Compared with the traditional methods, the new approach of R&D budgeting based on the value
chain is better for resources distribution and optimize enterprise resource to enhance the use
efficiency of R&D resources can play an effective role, which is directed by the strategy. R&D
budgeting fully reflects the enterprise strategy; cost driver analysis of R&D activities based on
the value chain analysis, provide an effective basis for resource allocation. However, the R&D
budget model than the traditional budget method is more complex, budgeting, cost is higher, it is
important, the quality and ability of the value chain of the R&D budget mode on R&D budget
staff enterprises based on the higher requirements are put forward, so as to push the development
of budgeting level of enterprises to improve.

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R&D budget goal is to realize the goal of enterprise, in the budget period on the allocation of
resources to achieve the goal of the R&D activities. Determine the R&D budget target, which is
related to the rationality of science resource allocation, but also to realize the goal of enterprise.
Enterprises determine the value chain research budget targets based on should take the strategy
as the guidance, preparation for the R&D budget strategy provides a basic framework. The
relationship between enterprise strategy and R&D budget goal should be: the strategic goal of
guiding the development budget target, R&D budget target reflects the enterprise strategic target.
The value chains of the R&D budget objectives include three levels: the first is based on
determining the total budget target, this is the enterprise strategic target in the concrete
embodiment of the budget period, is also the budget period umbrella R&D resources scale. The
second is to determine the individual R&D budget target, this is the total budget target
decomposition to various R&D projects; the project is on different stages of the budget target,
according to a single project budget target, Resources allocation R&D resources include human
resource, equipment, materials and capital etc., The allocation of resources is not random
combinations of different types of resources, but the destination will organize all kinds of
resources to support value activities. Otherwise, all these resources getting together will be
losing meaning. For example, the R&D project, test, acceptance of these activities in the value of
human resources investment and industrial test pilot, need a large number of materials,
equipment support resources, the enterprise according to the resource demand characteristics of
reasonable organizational resources, can help to create value.
The best kind of budget is the one that works. You can choose from three key approaches to
developing a budget:
Top down: Budgets are prepared by top management and imposed on the lower layers of
the organization. Top down budgets clearly express the performance goals and
expectations of top management, but can be unrealistic because they do not incorporate
the input of the very people who implement them.
Bottom up: Supervisors and middle managers prepare the budgets and then forward
them up the chain of command for review and approval. These budgets tend to be more
accurate and can have a positive impact on employee morale because employees assume
an active role in providing financial input to the budgeting process.
Zero-based budgeting: Each manager prepares estimates of his or her proposed
expenses for a specific period of time as though they were being performed for the first
time. In other words, each activity starts from a budget base of zero. By starting from
scratch at each budget cycle, managers are required to take a close look at all their
expenses and justify them to top management, thereby minimizing waste.
(b) A technology subjected to portfolio analysis on technology portfolio falls under head Hold.
What R&D inputs can shift this technology to Build?
Ans.: Having a sound patent strategy is as crucial as having a well-planned business strategy for
a company. In the era where hundreds of patents are being filed by technology giants each year,
it is becoming more difficult to design a sound patent strategy for ones company. In most of the
companies, the distance between the IP department and R&D department is widening. These two
departments that are responsible for shaping the business vision of a company, are working more
and more independent of each other. This is leading to more qualitative filing than strategical
filing.

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Business strategy is always based on market and so should be the patent strategy. Its important
to know what is the current state of technology and when that state may probably change. And
the problem lies in the fact that most of the IP departments think this as a role of the R&D
department; which, however, is not the case.
Decisions should be made in a coordinated sequence, taking into account of the financial aspects
of the development plan for an individual drug. Decision-making should be viewed as a dynamic
process that changes over time, rather than one that remains static, even within the same
organization. Company size determines how much of the preparatory work for decision-making
can be done in-house and how much needs to be outsourced. Decision-making itself is difficult
to delegate outside the company, at least where it concerns important company-wide issues. In
certain situations, for instance, where the matter to be addressed relates more to a project than to
the construction of a portfolio, decision-making is simpler and may be outsourced when it
addresses a restricted set of questions. However, despite the importance of making optimal
decisions while managing drug pipelines, human judgment rather than any formal analytical
method is used in pharmaceutical companies.2 In this study, the various aspects of commercial
decision-making and specifically that concerning the development of drugs in oncology will be
investigated; these aspects include: the need for decisions, their timing, decision-making at the
project level, the optimal portfolio, tools for portfolio analysis, the evaluation of patents, and
finally, the importance of the drug portfolio.
Decision-making is a core function of any firm. Without making decisions, it is simply not
possible to stay in business. Generally, product development can be organized into two
categories: the decisions made within a single developmental project and those decisions a firm
makes in establishing an organizational context and in planning its projects. While many people
make decisions on single projects, there are only a few people within a firm able to make
organizational decisions spanning several projects. That small group must have access to
sufficient information about the science, manufacturing issues, marketing, and financial aspects
of the project to base its decisions upon. Specific success factors include the firms internal
clinical capabilities, the ability to internalize critical external knowledge as well as the means by
which the firm organizes developmental activities with key partners. Further success factors
relating to research and development (R&D) have been cited, including: selecting prime targets
for drug discovery, driving rapid experiments that provide decision-critical information, focusing
limited resources to enhance speed, breaking down barriers between research and manufacturing,
and managing product life cycles effectively. If there is a need for international R&D, the extra
costs must be balanced by synergy effects such as reduced time-to-market, improved
effectiveness, and enhanced learning capabilities. Currently, consultants are used more and more,
and in some cases, excessively. As a rule, a firm will consider using a consultant in an area that
is important but that does not need continuous actions. A permanent member of staff should be
considered, if work tasks are repeatedly needed. The firms characteristics and way of
conducting development has implications for decision-making. Clearly, different organizations
will make different choices and may use different methods, but each makes decisions on a
collection of issues, such as product concept, architecture, configuration, procurement,
distribution arrangements, and project schedule.
4. (a) What do you understand by organisation culture? Is it possible to influence the culture of
an organisation?

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Ans.: A common platform where individuals work in unison to earn profits as well as a
livelihood for themselves is called an organization. A place where individuals realize the dream
of making it big is called an organization. Every organization has its unique style of working
which often contributes to its culture. The beliefs, ideologies, principles and values of an
organization form its culture. The culture of the workplace controls the way employees behave
amongst themselves as well as with people outside the organization.
The culture decides the way employees interact at their workplace. A healthy culture encourages
the employees to stay motivated and loyal towards the management.
The culture of the workplace also goes a long way in promoting healthy competition at the
workplace. Employees try their level best to perform better than their fellow workers and earn
recognition and appreciation of the superiors. It is the culture of the workplace which actually
motivates the employees to perform.
An organizations culture consists of the values, beliefs, attitudes, and behaviors that employees
share and use on a daily basis in their work. The organization culture determines how employees
describe where they work, how they understand the business, and how they see themselves as
part of the organization. Culture is also a driver of decisions, actions, and ultimately the overall
performance of the organization.
Cultures are either created organically or through deliberate and consistent planning and action.
The best organizations understand their culture and take careful steps to manage and promote it
effectively. One of the ways organizations begin to manage their culture is to gather feedback
from employees to see how aligned they are with the current and/or desired culture. A good way
to do this is to define the desired cultural attributes and then measure them through an employee
survey.
There are several factors which affect the organization culture:
The first and the foremost factor affecting culture is the individual working with the
organization. The employees in their own way contribute to the culture of the workplace. The
attitudes, mentalities, interests, perception and even the thought process of the employees affect
the organization culture.
Example - Organizations which hire individuals from army or defence background tend to follow
a strict culture where all the employees abide by the set guidelines and policies. The employees
are hardly late to work. It is the mindset of the employees which forms the culture of the place.
Organizations with majority of youngsters encourage healthy competition at the workplace and
employees are always on the toes to perform better than the fellow workers.
The sex of the employee also affects the organization culture. Organizations where male
employees dominate the female counterparts follow a culture where late sitting is a normal
feature. The male employees are more aggressive than the females who instead would be caring
and softhearted.
The nature of the business also affects the culture of the organization. Stock broking industries,
financial services, banking industry are all dependent on external factors like demand and
supply, market cap, earning per share and so on. When the market crashes, these industries have
no other option than to terminate the employees and eventually affect the culture of the place.
Market fluctuations lead to unrest, tensions and severely demotivate the individuals. The

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management also feels helpless when circumstances can be controlled by none. Individuals are
unsure about their career as well as growth in such organizations.
The culture of the organization is also affected by its goals and objectives. The strategies and
procedures designed to achieve the targets of the organization also contribute to its culture.
Individuals working with government organizations adhere to the set guidelines but do not
follow a procedure of feedback thus forming its culture. Fast paced industries like advertising,
event management companies expect the employees to be attentive, aggressive and hyper active.
The clients and the external parties to some extent also affect the work culture of the place.
Organizations catering to UK and US Clients have no other option but to work in shifts to match
their timings, thus forming the culture.
The management and its style of handling the employees also affect the culture of the workplace.
There are certain organizations where the management allows the employees to take their own
decisions and let them participate in strategy making. In such a culture, employees get attached
to their management and look forward to a long term association with the organization. The
management must respect the employees to avoid a culture where the employees just work for
money and nothing else. They treat the organization as a mere source of earning money and look
for a change in a short span of time. (b) Describe in detail organisations related with R&D under
the Central Government.
5. (a) Discuss the salient features of the Technology Policy of India. What have been the
achievement and failure of the technology policy?
Ans.: Science, Technology and Innovation (STI) have emerged as the major drivers of national
development globally. As India aspires for faster, sustainable and inclusive growth, the Indian
STI system, with the advantages of a large demographic dividend and the huge talent pool, will
need to play a defining role in achieving these national goals. The national STI enterprise must
become central to national development.
India's Scientific Policy Resolution (SPR) of 1958 resolved to "foster, promote and sustain" the
"cultivation of science and scientific research in all its aspects". Technology was then expected
to flow from the country's established science infrastructure. The Technology Policy Statement
(TPS) of 1983 emphasized the need to attain technological competence and self-reliance. The
Science and Technology Policy (STP) of 2003 brought science and technology (S&T) together
and emphasized the need for investment in R&D. It called for integrating programmes of socio-
economic sectors with the national R&D system to address national problems as well as creating
a national innovation system.
Scientific research utilizes money to generate knowledge and, by providing solutions, innovation
converts knowledge into wealth and/or value. Innovation thus implies S&T based solutions that
are successfully deployed in the economy or the society. It has assumed centre stage in the
developmental goals of nations. Paradigms of innovation have become country and context
specific. India has, hitherto not accorded due importance to innovation as an instrument of
policy. The national S&T enterprise must now embrace S&T led innovation as a driver for
development
Science, technology and innovation can exist separately on their own in disconnected spaces.
But, it is their integration that leads to new value creation. India's global competitiveness will be
determined by the extent to which the STI enterprise contributes social good and/or economic
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wealth. There is, therefore, the need to create the necessary framework for enabling this
integration in identified priority areas by exploiting endogenous resources, strengths and
capacities. New structural mechanisms and models are needed to address the pressing challenges
of energy and environment, food and nutrition, water and sanitation, habitat, affordable health
care and skill building and unemployment. "Science technology and innovation for the people" is
the new paradigm of the Indian STI enterprise. The national STI system must, therefore,
recognize the Indian society as its major stake holder. Global innovation systems tend to bypass
large sections of the community. Innovation for inclusive growth implies ensuring access,
availability and affordability of solutions to as large a population as possible. Innovation,
therefore, must be inclusive. The instruments of the STI policy will enable this to be realized.
The policy will drive both investment in science and investment of science-led technology and
innovation in select areas of socio-economic importance. Emphasis will be to bridge the gaps
between the STI system and the socio-economic sectors by developing a symbiotic relationship
with economic and other policies.
The key elements of the STI policy will be:
Promoting proliferation of scientific temper amongst all sections of society.
Enhancing skill for applications of science among the young from all social strata
Making careers in science, research and innovation attractive to the brightest.
Establishing world class R&D infrastructure for gaining global leadership in some
select frontier areas of science.
Positioning India among the top five global scientific powers by 2020.
Linking contributions of science, research and innovation system with inclusive
economic growth agenda and combine priorities of excellence with relevance
Migrating R&D outputs into commercial applications by replicating hitherto successful
models as well as establishment of new structures.
Facilitating S&T-based high-risk innovations. through new mechanisms
Triggering changes in the mindset and value systems to recognize, respect and reward
performances which create wealth from S&T derived knowledge.
The evolution of Scientific temper in the Nehruvian era is a great way to start the revolution in
Science and Technology for India. Establishment of Institutions like DRDO, ICMR, CSIR etc
have done a great contribution shouldering the responsibility of growth in plank of Science and
Tech in India. India's Policy on Science and Technology was clear initially with Agriculture and
Industry as emphasis during initial five year plans. Later coordination with Soviet Union has led
to the organized development of Nuclear and Space etc technologies.
India's policy on S&T has become blurred in recent years due to many problems like unethical
practices in promotions, lack of funds, no academics industry collaboration, plagiarism, brain
drain, lack of political will etc. Despite conducting successful missions like Chandrayaan,
Mangalyaan, Agni V, Brahmos missiles etc there is a disconnect between the different
departments and lack of vision for the overall science and technology as a field of development.
The organized way of development and clear vision coupled with coordination among different
ministries like agriculture, industry, science and tech itself and their departments with states,
research wings, policy making heads, academia etc is a dire need for bringing back the glory of
Nehruvian era fulfilling the Directive principles of the Indian constitution with Scientific Temper
and a clear vision.

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(b) What are the shortcomings in our approach to commercialisation and technology transfer
from laboratory to industry?
Ans.: Technology transfer is the process by which basic science research and fundamental
discoveries are developed into practical and commercially relevant applications and products. To
achieve success in a hi-tech area, while synergy between science and technology development is
the first requisite, an organic linkage between the laboratory developing the technology and the
industry receiving the technology is the second requisite. In India, technology transfer from
public funded research institutions to industry happens in various ways, either the research
organizations have a special cell or department for a liaison between the research organization
and industry.
The initiative's several goals include establishing a marketing strategy to provide minority
businesses with technology transfer opportunities, assisting with establishing a minority
technology transfer consortium, developing and seeking funding for minority industrial
fellowships, strengthening minority employee recruitment through the consortium; linking the
Science Education and External Relations program with the Technology Transfer Initiative,
providing minority businesses and various divisions with technical assistance as it relates to
technology transfer, and establishing a tracking system to provide follow-up on all activities.
A contract for technology transfer can either be a license agreement or a know-how agreement.
The license agreement normally refers to the licensing of intellectual property rights such as
patents, trademarks, copyrights, etc, whereas a know-how agreement involves the transfer of
information or skills which have not received statutory recognition. This distinction has an
impact on the confidentiality and secrecy aspects of the contract. Any technology transfer
contract broadly deals with the mode of transfer of technology, its use under certain terms and
conditions. The mode of transfer can take place through documents or through the provision of
technical services, assistance and training, software programs on diskettes or even through the
sale of machinery, raw materials or components that embody technology.
Any technology transfer involves many types of expertise and knowledge. Therefore, it is
important that these are precisely defined. These may include:
latest and complete data on the functioning of the product;
information and assistance on suppliers of raw material, machinery, spares
maintenance manuals and instructions;
engineering drawings and designs;
test methods;
response to specific queries from licensee;
deputation of personnel for on-site supervision.
Commercialization is one effective method of transferring technologies. Establishing a
technology's prospects for commercial success depends largely on five factors:
Technical Development: The time, materials, and personnel needed to reduce the
technology to practice and protect rights to the resulting product.
Regulatory Clearance: The testing needed to demonstrate the product's utility and
safety, and to meet federal regulatory requirements and to minimize or manage associated
risks.

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Manufacturing Requirements: The facilities, people, and equipment needed to make
the product.
Market Development: The plan for successful marketing of the product, created by
assessing perceived need for the product, size of potential market, expected sales,
advantages over competing products, and the cost of promoting the product.
Financial Feasibility: The development costs, costs to produce, operating expenses in
relation to sales potential, net profits, potential liabilities, and return on investment.
6. (a) What is intellectual property rights? What are TRIPS? Discuss major differences between
Indian Laws and TRIPS.
Ans.: Intellectual property rights are like any other property right. They allow creators, or
owners, of patents, trademarks or copyrighted works to benefit from their own work or
investment in a creation. These rights are outlined in Article 27 of the Universal Declaration of
Human Rights, which provides for the right to benefit from the protection of moral and material
interests resulting from authorship of scientific, literary or artistic productions.
Intellectual property rights are customarily divided into two main areas:
(i) Copyright and rights related to copyright: The rights of authors of literary and
artistic works (such as books and other writings, musical compositions, paintings,
sculpture, computer programs and films) are protected by copyright, for a minimum
period of 50 years after the death of the author. Also protected through copyright and
related (sometimes referred to as neighbouring) rights are the rights of performers
(e.g. actors, singers and musicians), producers of phonograms (sound recordings) and
broadcasting organizations. The main social purpose of protection of copyright and
related rights is to encourage and reward creative work.
(ii) Industrial property : Industrial property can usefully be divided into two main
areas:
One area can be characterized as the protection of distinctive signs, in particular
trademarks (which distinguish the goods or services of one undertaking from
those of other undertakings) and geographical indications (which identify a good
as originating in a place where a given characteristic of the good is essentially
attributable to its geographical origin).
The protection of such distinctive signs aims to stimulate and ensure fair
competition and to protect consumers, by enabling them to make informed
choices between various goods and services. The protection may last
indefinitely, provided the sign in question continues to be distinctive.
Other types of industrial property are protected primarily to stimulate
innovation, design and the creation of technology. In this category fall
inventions (protected by patents), industrial designs and trade secrets.
The social purpose is to provide protection for the results of investment in the
development of new technology, thus giving the incentive and means to finance
research and development activities.
A functioning intellectual property regime should also facilitate the transfer of
technology in the form of foreign direct investment, joint ventures and licensing.
The protection is usually given for a finite term (typically 20 years in the case of patents).

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While the basic social objectives of intellectual property protection are as outlined above, it
should also be noted that the exclusive rights given are generally subject to a number of
limitations and exceptions, aimed at fine-tuning the balance that has to be found between the
legitimate interests of right holders and of users.
Various subject matters of Intellectual Property in India
Copyrights
Patents
Trademarks
Designs
Geographical Indications
Plant Varieties
Superconductor Chips and Integrated Circuits
Traditional Knowledge
Biological Diversity
The Agreement on Trade related Aspects of Intellectual Property Rights of the WTO is
commonly known as the TRIPS Agreement or simply TRIPS. TRIPS are one of the main
agreements comprising the World Trade Organisation (WTO) Agreement. This Agreement was
negotiated as part of the eighth round of multilateral trade negotiations in the period 1986-94
under General Agreement on Tariffs and Trade (GATT) commonly referred to as the Uruguay
Round extending from 1986 to 1994. It appears as Annex 1 C of the Marrakesh Agreement
which is the name for the main WTO Agreement. The Uruguay Round introduced intellectual
property rights into the multilateral trading system for the first time through a set of
comprehensive disciplines.
The TRIPS Agreement is part of the single undertaking resulting from the Uruguay Round
negotiations. This implies that the TRIPS Agreement applies to all WTO members, mandatorily.
It also means that the provisions of the agreement are subject to WTO dispute settlement
mechanism which is contained in the Dispute Settlement Understanding (the Understanding on
Rules and Procedures Governing the Settlement of Disputes). The TRIPS Agreement is one of
the most important agreements of the WTO.
Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement was one of the most
contentious issues in the Uruguay Round of multilateral trade negotiations, which was concluded
in 1994 at Marrakech. The commitments under the TRIPS Agreement compelled India to amend
its patent regime in 1999, 2002 and 2003 (the Amendment Bill lapsed due to the dissolution of
the present Lok Sabha). This paper examines the amendments in the Indian patent system in
consequence of TRIPS Agreement, and Indian reaction to the same in substantial and procedural
levels. India opted for the setting up of a mail box and has taken Exclusive Marketing Rights
(EMR) route for the transitional period. The second section analyses the implications of
transitional period and to suggest further options available to India. It also looks into the new
provisions included in the Patents (Amendment) Bill 2003. This paper, based on a review of
amendments to the Indian law, concludes that the Indian patents regime is inadequate to meet the
challenges posed by the TRIPS Agreement. It also puts forward some suggestions to improve the
patent regime in the country as a whole.

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India has complied with most of the obligations and the remaining will be fulfilled with the
passing of Patent (Amendment) Bill 2003. The TRIPS Agreement covers seven major IPR areas,
viz., patent, copyrights and related rights, trademarks, geographical indications, industrial
designs, layout designs (topographies) of integrated circuits, and protection of undisclosed
information. India made a series of amendments to its existing laws and enacted new legislations
in consonance with the TRIPS commitments.
(b) What is GATS? How can it facilitate access to technology and technical information for
developing countries?
Ans.: The General Agreement on Trade in Services (GATS) is the first set of multilateral rules
covering international trade in services. It came into effect in 1995 and is being negotiated under
the auspices of World Trade Organization (WTO).
GATS has three main parts: the main text with general principles and obligations; annexes with
rules for specific sectors; and Member countries' specific commitments to provide access to their
markets. The WTO provides links to the GATS text.
The General Agreement on Trade in Services (GATS) is the first set of multilateral rules
covering international trade in services. It came into effect in 1995 and is being negotiated under
the auspices of World Trade Organization (WTO).
GATS has three main parts: the main text with general principles and obligations; annexes with
rules for specific sectors; and Member countries' specific commitments to provide access to their
markets. The WTO provides links to the GATS text.
GATS applies to all measures affecting trade in services. GATS defines measures as all laws,
regulations and practices from national, regional or local government or non-governmental
bodies exercising powers delegated to them by government that may affect trade.
GATS defines 4 ways that all services can be traded based on modes of supply:
1. Consumption abroad of service by consumers travelling to supplier country (e.g.
students studying abroad);
2. Cross border supply of a service to consumer country without the supplier (e.g.
open and distance education);
3. Commercial presence of a supplier in consumer country (e.g. offshore foreign
universities); and
4. Presence of Natural Persons from supplying country in consuming country (e.g.
professors, researcher working outside their home country).
GATS envisage the objective of establishing a sound multilateral framework or principles and
rules for trade in services. Many countries directly have laws, which restrict entry of foreign
services enterprises in areas like finance, media, communications, transport etc.
The GATT looks upon these regulations relating to investment in the service sector as distorting
factors affecting free trade. Hence these distortions have to be eliminated or minimized. The
GATS Agreement covers all services (there are 161 tradable services under GATS) financial
services (banking insurance etc), education, telecommunications, maritime transport etc.
Service trade expansion has big prospects though countries are in general reluctant to liberalise
it. According to the WTO, while services currently account for over 60 percent of global
production and employment, they represent no more than 20 per cent of total trade (BOP basis).

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The Agreement intends to contribute to trade expansion as a means of promoting the economic
growth of all trading partners and the advancement of developing countries. So trade expansion
is not seen as an end in itself, but as an instrument to promote growth and development. The
GATS contribution to world services trade rests on three main pillars: (1) ensuring increased
transparency and predictability of relevant rules and regulations, (2) providing a common
framework of disciplines governing international transactions, and (3) promoting progressive
liberalization through successive rounds of negotiations.
One objective of the GATS is to facilitate progressive liberalization of services sectors. Such
liberalization consists of the removal of quantitative and discriminatory restrictions affecting the
entry and operation of foreign services suppliers in a host market. This needs to be distinguished
from regulation, and here it is important to be clear that the WTO leaves the right to regulate
services firmly in the national domain. The GATS does recognize governments rights (in
particular those of developing countries) to introduce regulations that meet national policy
objectives. Within this framework, what the WTO has been engaged in is how to ensure that
domestic regulation, for example systems of licensing, qualification requirements or technical
standards, do not create unnecessary barriers to trade in services. In a sense, we can see it as the
GATS providing the outer limits of what WTO members can regulate. In the goods area, under
the GATT, this is addressed through the Agreement on Technical Barriers to Trade and, mainly
for agricultural products, through the Agreement on Sanitary and Phytosanitary Measures. In the
services sector, these discussions are still ongoing in the WTO.
With these negotiations in progress, an interim solution had to be put in place: WTO members
must ensure that any new regulations on services that they introduce in sectors they have
liberalized do not constitute unnecessary barriers to trade. Members have to be able to show that
they conform to this obligation, and one way to do that is to base regulations on International
Standards. In other words, for WTO members, following International Standards provides a
presumption of conformity.

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