1. QUANTITATIVE ANALYSIS OF TECHNOLOGICAL DEVELOPMENT
Indicators of technological progress

2. 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.

3. 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.

4. Product Global productivity Bp- gross production Tr- labor costs
Tos- costs of fixed and working assets

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

6. Equipment Technical equipment per employee Vos- Value of fixed assets
N- Number of employees.

7. Technical equipment per employee
Vos ·106 N
2000 50
250
2001
350
2002 60

8. 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

9. Factor of technological level of equipment
Pi·107
Zi·103
pi·103 k
Ki·107
Q·106
2000 55 60 30
0.07 20 -
2001 40 25 10
2002 90 70 50
0.08
2003 95 75 35

10. Energy Electricity consumption per employee
Pe- overall electricity consumption
N - number of employees

11. Electricity consumption per employee
2000
1488 13
2001
1184 14
2002
1440 11

12. R & D Indicator of R & D ratio of income and expenses for R&D
P - total income
TIR total costs for R&D activities

13. Indicator of R & D
UP·106
TIR·102
2000
4000
450
2001
490
2002
4500
600

14. Investments Intensity of investments IS- overall investments
N- total number of employees

15. Intensity of investments
IS·106 N
2000
1154 16
2001
1235 19
2002
1120 10

16. Human resources Level of qualifications and qualification structure
n- number of employees at appropriate level of expertise
N- total number of employees

17. Qualification structure
Production workers KV VK PK NK
TOTAL
2000 6 20 4 2 32
2001 5 17 7 33
2002 8 39 10 3 60
2003. 29 1 37

18. Qualification structure
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

19. Qualification structure

20. 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

21. Cobb-Douglas
Cobb-Douglas form of production function is widely used to represent the relationship of an output to inputs
Q=ALα Kβ
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
α – elasticity of production volume in relation to labor production factor
β - elasticity of production volume in relation to capital production factor

22. Rate of technological progress
A = emt
e – constant
t – time
m – rate of technological progress
Q= emtLα Kβ
lnQ = mt + αlnL + βlnK
ΔQ/Q = m + α ΔL/L + β ΔK/K
m = ΔQ/Q - α ΔL/L - β ΔK/K

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

24. Exercise Ratio of factor L to production growth
Ratio of factor K to production growth
Ratio of factor m to production growth