6. Definitions and characterization of technologies and enabling frameworks (30 min) Chapter 2 Ivan Nygaaard, Ulrich Elmer Hansen

What is a technology? Hardware: – tangible components (equipment, machinery, products) Software: – know-how (skills, experience, manuals, practices) Orgware: – the institutional framework (organisation, management)

Example: Solar Home System Hardware: PV panels, inverters, wiring, batteries, chargers, switches Software: Knowledge, skills, know-how (to design, install, O&M) Orgware: Ownership of system (ESCO, private user, cooperative)

Technology categorisation

1. Consumer goods Technology examples – Solar home systems, – Efficient light bulbs – Drip irrigation tubes Mass market goods Purchased by private consumers. Large supply chains with many actors Potential barriers in all steps along the supply chain.

2. Capital goods Technology examples – Small-scale hydropower – Biomass power plant – Cement factory Used to produce other goods Purchased by private businesses Limited no. of sites/consumers Relative large investment Simpler market chain Few national providers.

3. Publicly provided goods Technology examples – Large-scale hydropower – Sea dikes – Mass transport systems Goods/services provided to the public by governments (free or paid). Large infrastructure projects Few sites Very large investment Simple market chain Procured through national/international tenders International donor funding.

4. Other non-market goods Technology examples – Early warning systems, seasonal weather forecasts – Microfinance institutions, seed banks, forest management groups – Livelihood coping strategies, shift in modes of transportation. High degree of software and orgware dimension Spans across: – Public domain (non-market) – Donor and NGO projects – Changes in practices.

How does government exert influence? Consumer goodsCapital goods Publicly provided goods Non Market High Low Indirect influence Political influence through enabling framework Direct influence Political influence through projects and procurement Government influence Market Continuum non-market

What is an enabling environment? Resources (human, physical, financial) Social (norms, practices) Policies and regulation Culture and religion Macroeconomic conditions Technological capacity Institutions

Example: Macroeconomic conditions Possible barriers: – High cost of capital and interest rates – High inflation rate and price fluctuations – High import duties. What can governments do to overcome these barriers? – Trade policies and laws – Tax, subsidies, and tariff regime policies – Regulation of financial sector institutions.

Example: Technological capacity Possible barriers: – Low product quality – Few technology nurturing sites – Limited capacity to install and operate. What can governments do to overcome these barriers? – Standards and certification – Support for testing and demonstration – Training programs.

Definitions and characterization of technologies and enabling frameworks Summing up – What is a technology – Categorization of technologies – What is an enabling framework – Examples of barriers and measures