View
217
Download
0
Category
Preview:
Citation preview
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 1/58
MME 3113ENGINEERING MANAGEMENT
ENTREPRENEURSHIP AND
TECNOLOGICAL INNOVATION
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 2/58
THEORIES & CONCEPT OFTHEORIES & CONCEPT OF
ENTREPRENEURSHIPENTREPRENEURSHIP
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 3/58
THE EVOLUTION OF
ENTREPRENEURSHIP THEORY
Definition of an Entrepreneur :
• “ An entrepreneur is a person whoundertakes to do a job ” RichardCantillon (1755). The term entrepreneur is a French word first coined by Richard
Cantillon.• In Malaysia the term “usahawan” is
used for entrepreneur.
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 4/58
THE EVOLUTION OF
ENTREPRENEURSHIP THEORY
Definition of Entrepreneurship:
• Entrepreneurship involves not only theprocess that leads to the setting up of abusiness entity but also the expansionand development of an on going
concern.The study of entrepreneurshipis concerned with the entrepreneurialbehavior, the dynamics of business setup and expansion and development.
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 5/58
THE EVOLUTION OF
ENTREPRENEURSHIP THEORY
• Adam Smith (1776) - An entrepreneur is
a person who acts as agent intransforming demand into supply.
• Jean Babtiste Say (1803) - An
entrepreneur is a person who shiftsresources from an area of low
productivity to high productivity.
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 6/58
THE EVOLUTION OFENTREPRENEURSHIP THEORY
• John Stuart Mill (1848) - An entrepreneur is a
prime mover in the private enterprise.The
entrepreneur is the fourth factor of production
after land ,labor and capital.
• Carl Menger (1871) - The entrepreneur acts
as an economic agent who transformsresources into products and services.The
entrepreneur transforms and gives added
value.
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 7/58
THE EVOLUTION OFENTREPRENEURSHIP THEORY
• Joseph Aloysius Schumpeter (1934) - An
entrepreneur is an innovator. The economymoves through leaps and bounds and the
prime mover is the entrepreneur through the
process of creative destruction.
• Alfred Marshall (1936) - The process of entrepreneurship or business development is
incremental or evolutionary . It evolves from
sole proprietorship to a public company.
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 8/58
THE EVOLUTION OFENTREPRENEURSHIP THEORY
• Ibnu Khaldun (Abdul Rahman Mohamed
Khaldun) - The entrepreneur is seen as aknowledgeable individual and is instrumental
in the development of a city-state where
enterprise will emerge.
• David McClelland - The entrepreneur is aperson with a high need for achievement.
This need for achievement is directly related
to the process of entrepreneurship.
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 9/58
DEFINITION OF ENTREPRENEURSHIP
It is more than mere creation of business
Entrepreneurship is a process of innovationand new venture creation through four major dimensions – individual, organizational,environmental and process.
The entrepreneurship process is aided bycollaborative networks in government,education and institutions.
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 10/58
DEFINITION OF ENTREPRENEURS
• Functional definition of entrepreneursoffers the following definition:
• Entrepreneurs are individuals who
actively form or lead their own businessand nurture them for growth and
prosperity.
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 11/58
Definition of Entrepreneur
• “The entrepreneur, by definition, shifts
resources from areas of low productivityand yield to areas of higher productivity
and yield. Of course, there is a risk the
entrepreneur may not succeed”.(Drucker, ’85)
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 12/58
Entrepreneurship Vs
Management• Entrepreneurship
– Creating something new
– New product, new method of production, newmarkets, new source of raw material
– Challenges the ‘norm’
• Management – Protects
– Stewardship of existing resources
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 13/58
Why become an Entrepreneur?
• Personal situation
• Resources
• Entrepreneurial skills
• Success stories
• Desire for independence
• Opportunity to exploit a gap
• Frustration
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 14/58
Characteristics of an
Entrepreneur
• Drive
• Perseverance
• Ambition
• Leader
• Survivor status• Competitive
• Interpersonal skills
• Innovative skills
• Ability to bounce back
• Vision
• Motivation
• Self-confidence
• Self Satisfaction
• Extrovert• Results orientated
• Committed
• Risk taker
• Sociable
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 15/58
Psychological Characteristics of
Entrepreneurs
• Need for achievement
• Locus of Control
– Internal
– External
• Risk-taking Prosperity
• Tolerance for ambiguity
• Type A Behaviour
– Impatient, time urgency, driving ambition, competitiveness
• Need for Independence
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 16/58
What is the Role of the
Entrepreneur?• Opportunity recognition
• Market uncertainties
– Dealing with the future
• Risk taking
– Businesses, financial and personal
• Resource gathering
• Profits/Reward
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 17/58
Reasons for Entrepreneurial
Success• Hard work and long hours
• Dedication, drive, enthusiasm and belief in
the idea• Unsatisfied market demand
• Managerial competence
• Luck • Strong control systems
• Sufficient capital
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 18/58
Hurdles in starting up a a
business• Lack of the right business idea
• Complicated regulatory efforts
• Own financial risk • Lack of courage
• Lack of right founding partner
• Lack of equity• Lack of debt capital
• Know-how-deficit
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 19/58
Hurdles in starting up a a
business• Lack of contact clients/customers
• Economic cycle
• Business environment
• Fear of failure
• Support by family and friends
• Lack of time
• Lack of entrepreneurial skills
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 20/58
ISLAMIC ENTRA`rENEURHIP
ISL MICРENTREPRENEURSHIP ⁁ ၦOCUS䂠 Nɏ
EIGHT PRINႃ䃉 䃉 LEɐ OF THOUG TS :-1.Ent 聲 epreneurship is an integral parts oŦ Islamic
religion.
2.By virtue of human nature , the Moslem entrepreneursaRe ‘khalifah’ and have the reponsibilities develop
prosperity and sees business as part of ibadah or food
deed.
3.Motivation – success in Islam is not merely measuredby the end result but also the way and means of
achieving them.
4.Ibadah – business activity is part of ibadah or “good
deed”
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 21/58
5. Position of Entrepreneurship and business in
Islam – Islam encouraged its ummah to
venture into business . Prophet Muhammad
S.A.W expounded that 9 out 10 source of rizque (reski) can be found in business.
6. Islamic Economic System - Islamic
Entrepreneurship should operate within the
domain of Islamic Economic system and actas the vehicle towards global acceptance of
Islamic Economic System.
ISLAMIC ENTREPRENEURSHIP
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 22/58
7. Guiding Principles of Islamic
Entrepreneurship is by the al-Quran and al-
Hadith8. Entrepreneurial Ethics based on exemplary
conducts of Prophet Muhammad S.A.W
ISLAMIC ENTREPRENEURSHIP
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 23/58
ISLAMIC ENTREPRENEURSHIP AS ASINTEGRAL PART OF THE RELIGION
Islam is a complete way of life. There is noseparation between business and religion.
Islam has its own entrepreneurship culture
and guiding principles based on the Al-Quran
and Hadith to guide business operation .
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 24/58
HUMAN NATURE
(The fitrah of human being)
By virtue of the human nature, the person mustfirstly be a Muslim, then an entrepreneur. He
has the responsibility to perform ‘ibadah’ and be
a ‘khalifah’ . Muslim entrepreneur should search
for God’s blessings above all other factors. AMuslim entrepreneur perform business not
solely for profit, but above all, to fulfill the
‘fardhu kifayah’ .
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 25/58
MOTIVATION
• Most entrepreneurs have the desire to
achieve successful business venture.• The successful path and means for
achieving success for Muslim
entrepreneurs are unique.
• Success in Islam is not merelymeasured by the end result, but also
the means and ways of achieving them.
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 26/58
SUCCESS FORMULA BY AL-QURTUBI
• Halal – livelihood that are in accordance to
what is being outlined by Allah SWT and
syariah.• Qanaah – be pleased and thankful with one’s
earning• Taufiq - Asking for the blessing of Allah in
proportion to one’s expectation• Sa’adah- Spiritual happiness• Jannah – Worldly success should act as the
bridge to the ultimate success in the life
hereafter (paradise).
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 27/58
Level of Knowledge
Level of Taubat or repentence Level of Temptation Level of Obstacles Level of Motivation
Level of Handicap Level of Praise and Thankfulness
SEVEN STEPS TOWARDS A SUCCESS IN LIFEACCORDING TO IMAM AL-GHAZALI
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 28/58
POSSESSION OF WEALTH IS ALLOWED BASED
ON THE FOLLOWING PRINCIPLES:-
• Allah s.w.t is the absolute owner of wealth
• Allah created wealth in
abundance and sufficient for all
• Wealth is created for mankind• Wealth is entrusted to mankind
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 29/58
IBADAH
In Islam, involving in businessis part of ibadah through the
fulfilment of fardhu kifayah.
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 30/58
POSITION OF BUSINESS AND ENTREPRENEURISLAMIC ENTREPRENEURSHIP MODEL
Islam Proposed
(Business Venture)
Allah Prepared
(Facilities)
Islam Outlined(Rules and Regulation)
Allah Promised
(Reward)
E
X
A
M
P
LE
EX
A
M
P
L
E
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 31/58
ISLAMIC ECONOMIC SYSTEM
Islamic Entrepreneurship should
be in the framework of Islamic
Economic System and shouldassist in establishing the Islamic
Economic System
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 32/58
GUIDING PRINCIPLES OF ISLAMIC
ENTREPRENEURSHIP
Guidelines for IslamicEntrepreneurship and business
activities are wide and
comprehensive based on Al-
Quran and Al-Hadith.
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 33/58
MUSLIM ENTREPRENEURSHIP ETHICS To prevent laziness To eradicate fear
To search for legitimate ventures To avoid forbidden sources of income
and property To show gratitude and thankfulness of
whatever has been acquired To grow and develop capital and profit To diversify business ventures
To avoid greediness
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 34/58
THE ETHICAL BEHAVIOR OF MUSLIM
ENTREPRENEURSHIP
To avoid malicious behavior To avoid squandering
To avoid stinginess To pay alms (zakat) Trustworthy
To pray consistently Tawakkal Patience Qana’ah
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 35/58
EXEMPLARY CONDUCTS OF GOOD MUSLIMENTREPRENEURS DURING THE PROPHET
MUHAMMAD S.A.W REIGN
Business is secondary when being called
for other form of crusade Avoid using influence for self interest
Afraid of accumulated wealth Leadership qualities in all aspects Practice moderate way of life
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 36/58
Innovation
What Are Innovations?
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 37/58
What Are Innovations?
• Innovations are new ways to achieve tasks.
• Types of innovations include: – Mechanical—tractors, cars.
– Chemical—pesticides.
– Biological—seed varieties. – Managerial—IPM, extra pay for work, overtime.
– Institutional—water users’ association, patents, banks, stock market,
conservation districts, monks.
• It is useful to distinguish between process innovations(new biotechnology procedures) and product innovations
(Bt cotton).
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 38/58
The Innovation Process
• An innovation starts as a concept that is refined and
developed before application.• Innovations may be inspired by reality. The innovation
process, which leads to useful technology, requires: – Research
– Development (up-scaling, testing)
– Production
– Marketing
– Use
• Experience with a product results in feedback andleads to improved innovations.
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 39/58
The Innovation ProcessFigure 1. Typical steps in the life cycle of a new technology
Research
Patenting
and
Approval
Adoption
Developme
nt
Production
Marketing
Discovery
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 40/58
Technology Adaptation and Appropriateness
• Rarely is the same technological solution optimaleverywhere. The value of an innovation depends on socio-economic,climatic, and ecological specifics.
• Important innovative activities adapt technological
solutions to specific conditions. – Export of technologies across regions without adaptation maylead to negative environmental side effects and waste.
• A technology may have several versions to meet needs
and capabilities of various users in a region, e.g., large vs.small farmers’ versions of a machinery.
• The establishment of an innovative capability starts with abuildup of capacity to support and adopt innovations and newtechnologies.
Induced Innovations
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 41/58
Induced Innovations
• Innovations respond to need and economic conditions.
Inventors, investors, and researchers put effort intosolving burning problems, and that leads to innovations. – Labor shortages led to mechanized equipment.
– Drought conditions led to improved irrigation.
– Energy crises led to higher efficiency cars. – Farmers’ cooperatives were established during periods of
excessive low farm prices.
• Environmental regulations trigger cleaner
technologies. – A tax on carbon will lead to improved stoves and power plants.
Various Types of Innovators
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 42/58
Various Types of Innovators
• In the past most innovations were introduced by
practitioners. Even now practitioners are important
innovators. They identify a way to meet needs.
• The scientific discoveries of the late 19th century gave riseto science-based innovations (Edison, Bell, Marconi).
• Major companies (IBM, Sony, Bell, Kodak, GM) built theirown research labs.
• Public sector labs made important agricultural andenvironmental discoveries.
• Universities and start-up companies are becoming majorsources of new innovations. The ownership of a technologyand leadership in its applications move betweenorganizations over time.
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 43/58
Incentives for Innovations
• Patents: Awards monopoly rights for 17-20 years.
– Patent protection allows publication of research findings thatleads to innovations.
– Patent rights (for certain applications) can be transferred.
– Patents are valid only where they are registered.
• Copyright protection: Pertains to books, brand names, andthe media.
• Trade secrets: Protects against thefts.
• Plant breeders’ right: Allows exclusive sales of varietiesand allows farmers to reuse seeds.
• Prizes: Awarded to winners of a contest for finding atechnical solution to a problem.
• Indigenous knowledge is poorly protected.
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 44/58
Investment in Research: A Key Element of
Environmental Policies
• Research enables discovery of basic environmentalproblems. Without research, not much would havebeen known about the link between smoking and
cancer.• Research provides better monitoring andmanagement equipment to help identifyenvironmental problems and monitor response.
• Public research enables sustaining development oftechnologies that may not be economical underexisting prices.
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 45/58
Division of Labor
• Basic research: Gain more comprehensiveknowledge or understanding of the subject understudy, without specific applications in mind.Conventionally conducted by universities.
• Applied research: Apply knowledge. Oftenconducted by industries.
• Educational-industrial complex : Universityresearch has led to the creation of new firms and
even industries, brought old ones down, and, ingeneral, profoundly impacted rates of innovationin the larger economy.
Stakeholders in the
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 46/58
Stakeholders in the
Innovation Process•
•
•
•
•
•
•
Ad ti d Diff i
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 47/58
Adoption and Diffusion
• The use of new technologies spreads gradually.
• There is a significant time lag between the time a newinnovation is introduced and when it becomes widely usedby producers or consumers.
• Diffusion is the aggregate process of product penetration. – It is measured by the percentage of potential users who actuallyadopt a technology.
• Diffusion curves measure aggregate adoption as a function
of time. They tend to be S-shaped.• Adoption is a decision by a specific individual to use atechnology. Diffusion is aggregate adoption.
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 48/58
The S-Shaped Diffusion Curve
S
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 49/58
Stages of Diffusion
• We distinguish among: – Early adopters: More educated, innovative
individuals who gain from technology.
– Followers: The majority of adopters who see itssuccess and want to join in.
– Laggards: Less-advanced individuals who
either do not adopt or adopt very late and may
lose because of the technology.
Ad i I i i
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 50/58
Adoption as Imitation
• Some explain the S-shaped behavior as theoutcome of imitation.
• Contact among individuals is the driving force ofdiffusion.
• Profitability of the new technology, ease of use, andquality of technical support are factors that canenhance diffusion.
• VCRs, wireless communication, Bt cotton, and
Viagra were technologies with a fast rate ofdiffusion, while personal computers and IPM hadslower adoption rates.
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 51/58
Threshold Model
• The factors behind diffusion:
– Heterogeneity of potential adopters.
– The individual decision process aimed at improving well-being.
– Dynamic forces that make technology more attractive.
• Source of heterogeneity (size, location, land quality, and humancapital).
• Decision criteria (profitability, well-being, risk minimization).• Dynamic processes that drive adoption (learning by doing,
learning by using, network benefits).
li ti f th Th h ld A h
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 52/58
pplication of the Threshold Approach
• Mechanical innovations: Tractors and cars are adoptedby larger farms and richer families.
• In the case of a tractor,
L = size of farm
a = saving per acre
P = cost of tractor
Adopt if P > aL
L = P/a critical size.Critical size declines because P declines. As a result
of learning by doing, a increases as a result oflearning by using.
Other Examples
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 53/58
Other Examples
• Water-conserving technologies (sprinklers) increase water-use efficiency if:
– With traditional technology, 50% of applied water is actually consumed.
– 75% is consumed with sprinklers.
– It results in higher yield and water saving .
• Technology adoption occurs: – In sandy soils and hills where the traditional technology is especially
inefficient.
– Locations where the price of water is high.
– With high-value crops.
• Green Revolution technologies arehigh-yield varieties that
require complementary inputs (fertilizers and sometimes water).They are adopted when: – They have high yield and cost effects.
– Farmers have access to credit.
Adoption and Risk
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 54/58
Adoption and Risk
• Impacts of technologies are unknown. Risk considerations slowadoption.
• One approach in assessing a technology:
– Maximize Expected benefits-α risk • whereα is a coefficient of risk aversion.
• Risk may be measured by a variance of profit.
• Policies that reduce risk include – insurance (crop insurance enhances adoption)
– Diversification.
• An alternative approach: Select the technology with the highest
benefit given that it yields minimum required benefits at the worstcase scenario. This approach aims to assure sufficient resourceduring drought.
• Good inventories, banking systems, and asset accumulationpossibilities reduce the need for protection against risks.
Adoption Credit Location
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 55/58
Adoption, Credit, Location,
and Education
• Lack of credit and high cost of credit are major impediments foradoption.
• Poorer consumers and farmers may be more constrained by risk and credit constraints.
• Adoption may be slower at far away locations because of lessaccess to information and sources of technology, higher cost ofinputs. In some cases, however, early adopters are at distancelocations(if technology reduces transportation costs).
• Adoption requires a high learning cost -more educated individuals
tend to be early adopters. When the technology issimple,sometimes less sophisticated individuals adopt first.
Ad i d P li
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 56/58
Adoption and Policy
• The government may enhance adoption through positive
incentives such as: – Price support of products produced with technologies.
– Extension and education.
– Credit subsidies.
– Insurance schemes.
– Cost-sharing arrangements.
• Negative incentives – Regulation against existing technologies (pesticide regulation enhances
biotechnology).
– Higher cost of inputs used intensively with existing technologies (waterprice hikes).
• Key elements of environmental policy are incentives to
– Induce innovation of greener products.
– Induce adoption of cleaner products.
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 57/58
Timing of Adoption
• Sometimes it is worthwhile to wait and see andnot adopt immediately when benefits oftechnology exceed costs.
• Cost of technology may decline over time. Youshould wait if the reduction in technology cost>than the cost of waiting.
• When a technology has uncertain irreversibleoutcomes- waiting to learn more is prudent.
• Waiting prevent the opportunity of learning andimproving a technology- the gains from waitingshould be compared to the costs.
G t & d ti
7/30/2019 14 INTREPRENEURSHIP
http://slidepdf.com/reader/full/14-intrepreneurship 58/58
Government & adoption
• Governments and Ngo’s are promoting and encouraging adoption
of technologies• Government is using incentives, initiate advertisement and
promotional campaigns.
• Extension is an institution used for education and support of
diffusion processes. – Extension should complement private sector marketing of new technology
-not replace it.
– In some cases extension’s clientele are mostly technology providers-not
users
– Extension role is to provide balanced assessments of new technologies notadvocate them.
– Extension role is adaptation of technology
– Extension may initiate and implement institutional innovations
Recommended