Description

INTRODUCTION

1.1 BACKGROUND

Technological innovations are a single most important source of productivity growth the world

over especially in developed economies where resources are abundant in the hand of

intellect entrepreneurs giving an opportunity to exploit the full potential of the technologies

simultaneously with high investments in research and development resulting in

the evolution of new technologies and thus keeping up the high pace of growth in

economic systems. The scenario in developing economies is not so similar. The resources in

these economies are highly constrained and opportunities for developing and adopting new

technologies have started dwindling. The productivity growth of these economies can be

maintained with efficient utilization of resources at disposal. In these situations,

measurement of efficiency becomes an important subject both for applied as well as basic

research. The applied research on the quantification of (in) the efficiency of an economic system,

industry, or firm will provide a prescription to the policymakers to make necessary

corrections in the management of resources. The basic research is to ensure the use of

appropriate methodology to arrive at an accurate measure of efficiency