The level of Technology in Nepalese business can be examined from the view point of traditional and modern technology:

  1. Level of Traditional Technology: Nepal is rich in many traditional We have good technical know-how in following areas:
    • Metallurgy: The sound knowledge of metallurgy of Nepalese craftsmen is reflected in images and status of bronze, copper, gold and silver found in many temples and stupas.
    • Pottery: The knowledge about manipulation and combination of different clays is still used to shape objects through traditional potter's wheel.
    • Architecture and construction: The architecture and civil engineering technology blended with art and culture is manifested in temples, pagodas, stupas and palaces.
    • Textile manufacturing: Nepal has own technology especially in processing raw materials, spinning and weaving. Handmade Nepalese carpets are world famous.
    • Paper manufacture: Nepali papers are well known for its durability and Printed Nepali paper products are the important item for export from Nepal.
    • Food Technology: The traditional food technology of brewing homemade beverages, preserving meats, fruits and vegetables, preparation of dry-food is still prevalent.
    • Agriculture and irrigation: Several mechanical devices for agriculture and irrigation are still being used in Nepal. Kol, Pannighatta, Dhiki, Jaatoo are the marvels of traditional technology.
  2. Level of Modern Technology: After liberalization of the Nepalese economy, the use of modern technology in business is rising. The current state of modern technology in business is indicated by following scenario:

    Industrial application:

    • Telecommunication and   internet   providers   are   using satellite  –based technologies.
    • Sophisticated technology is increasing in hydro-power industry and health related services.
    • Solar power is increasingly being used as new technology.
    • In agro-based industries, biotechnology and tissue culture technology is used.
    • Computer technology is used for teaching purpose.
    • Automated and   assembly   line   technology   are   being   used   in private manufacturing industries.

    3. Education and Training:

    • There are more than 3 dozens colleges under Tribhuvan University, Purbanchan University and Pokhara University is providing higher technical

    education. Besides, Center for Technical Education and Vocational Training (CTEVT) is also providing short-term and long- term skill based education.

4. Research and Development:

  • Research is dominated by universities and government research agencies.
  • Less relation with industrial sector.
  • Mostly organizations are depended on imported technology.
  • Little awareness on importance of RD.
  • However, agriculture sector, such as Fishery, Cultivation, Irrigation etc are using new and improved technology in accessible areas.
  • Government is also promoting new technology development on agriculture, other industries by providing the facilities of tax credit on imported technology, training and development programs, credit availability etc.

5. Transfer of Technology:

  • FDI, joint ventures, turnkey projects, licensing, contract manufacturing and franchising are the means of technology transfer. The scale of operation, the nature of production process, the relative cost of labor and the cost of adopting the technology determines the technology transfer rate.
  • In recent years, FDI of multinational companies from China, India, USA, South Korea etc. have transferred modern technology in Nepal. E.g. Unilever, Ncell, Tuborg, Foreign Joint-venture banks, KFC etc. are using and facilitating transfer of technology in Nepal‚
  • Among the countries that have established foreign investment industries in Nepal, China ranks first (695) while India is at the second place (588), United States of America third, (250), South Korea fourth (216), and Japan at fifth place (194).
  • Gradual increase in the number of foreign investment industries licensed for operation, and employment generated from these industries have given positive indication of their role in the overall industrial development. (Data source Economic survey 2014/15).