Keeping in view the importance of technological

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Keeping in view the importance of technological progress in the economic growth of a country, the governments of various countries are spending a lot of money on “research and development” (R & D), which is carried on in various laboratories and institutes to promote technological progress. Developing countries are using the technology imported from the developed countries because they have not yet made sufficient progress in technology, nor have they developed to adequate extent capital goods industries which produce capital goods, embodying advanced technology. But imitation and use of the technology of the advanced countries by these under-developed countries has produced one unfavourable result. It is that the technology of the advanced countries is not in accordance with the factor endowments of these developing countries, since they have abundance of capital while the developing countries have surplus labour. As a result of the use of the capital-intensive technology, enough employment opportunities have not been created by the large-scale industries using imported technology. As a result, unemployment in developing countries like India has been increasing despite the progress in industrialisation of the economy. In view of this not so happy experience in regard to the creation of
employment opportunities by industrial growth, an eminent English economist, Prof. Schumacher has recommended the use of intermediate technology or what is also known as appropriate technology by the developing countries like India. By Intermediate or appropriate technology is meant the technology which is labour-intensive and yet highly productive so that with its use enough employment opportunities are created along with more production. But in order to find out this appropriate technology for several industries, a good deal of research and development (R & D) activity is required to be carried out. (iv) The Growth of Population:

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