QUANTITATIVE ANALYSIS OF TECHNOLOGICAL DEVELOPMENT

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QUANTITATIVE ANALYSIS OF TECHNOLOGICAL
DEVELOPMENT

• Indicators of technological progress

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Technological progress

• Technological progress is a process that leads
  to
• creation of new or improved methods of production
  that provide savings,
• introduction of new and improved products and
  services,
• improvement of organization and production
  management.
• Technological progress can be observed globally
  and /or partially.

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Technological progress

• At company level we consider 10 basic components
  of technological progress
• product
• equipment,
• materials,
• energy,
• R D,
• investment,
• human resources,
• environmental protection,
• organization
• management.

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Product

• Global productivity

• Bp- gross production
• Tr- labor costs
• Tos- costs of fixed and working assets

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Global productivity
2000. 2001. 2002. 2003.
Bp106 2695 2134 2787 2980
Tr 105 953 841 904 810
Tos 106 1153 1475 1171 1226
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Equipment

• Technical equipment per employee

• Vos- Value of fixed assets
• N- Number of employees.

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Technical equipment per employee
Vos 106 N
2000 50 250
2001 50 350
2002 60 350
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Equipment

• Factor of technological level of equipment

• P- net product
• Z- number of employees
• Po- the average annual fees for employees
• K- invested funds
• k- interest that would be received on borrowed
  funds
• Q- production increase, as a result of improved
  capacity utilization

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Factor of technological level of equipment
Pi107 Zi103 pi103 k Ki107 Q106
2000 55 60 30 0.07 20 -
2001 60 60 40 0.07 25 10
2002 90 70 50 0.08 30 20
2003 95 75 60 0.08 35 20
10
Energy

• Electricity consumption per employee

• Pe- overall electricity consumption
• N - number of employees

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Electricity consumption per employee
Pe 103 N
2000 1488 13
2001 1184 14
2002 1440 11
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R D

• Indicator of R D ratio of income and expenses
  for RD

• P - total income
• TIR total costs for RD activities

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Indicator of R D
UP106 TIR102
2000 4000 450
2001 4000 490
2002 4500 600
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Investments

• Intensity of investments

• IS- overall investments
• N- total number of employees

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Intensity of investments
IS106 N
2000 1154 16
2001 1235 19
2002 1120 10
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Human resources

• Level of qualifications and qualification
  structure

• n- number of employees at appropriate level of
  expertise
• N- total number of employees

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Qualification structure
Production workers Production workers Production workers Production workers
KV VK PK NK TOTAL
2000 6 20 4 2 32
2001 5 17 7 4 33
2002 8 39 10 3 60
2003. 5 29 1 2 37
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Qualification structure
Production workers Production workers Production workers Production workers
KV VK. PK NK.
2000 18,75 62,5 12,5 6,25
2001. 15,15 51,52 21,21 12,12
2002. 13,33 65 16,67 5
2003. 13,51 78,38 2,70 5,41
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Qualification structure
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Production function

• Production function is a model that shows a
  maximum level of output that could be achieved
  with specific input
• Global production function
• Particular production function

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Cobb-Douglas

• Cobb-Douglas form of production function is
  widely used to represent the relationship of an
  output to inputs
• QALa Kß
• Q - total production (the monetary value of all
  goods produced in a year)
• L labor input - labor production factor
• K capital input - capital production factor
• A factor in proportion to production growth and
  depended on technological progress
• a elasticity of production volume in relation
  to labor production factor
• ß - elasticity of production volume in relation
  to capital production factor

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Rate of technological progress

• A emt
• e constant
• t time
• m rate of technological progress
• Q emtLa Kß
• lnQ mt alnL ßlnK
• ?Q/Q m a ?L/L ß ?K/K
• m ?Q/Q - a ?L/L - ß ?K/K

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Exercise
Q(106) L(105) Q(106)
2000 2588 810 1301
2001 2932 905 1399
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Exercise

• Ratio of factor L to production growth
• Ratio of factor K to production growth
• Ratio of factor m to production growth