ANNOUNCEMENTS
This research will mainly focus to identify the barriers of technology adaptation in clusters of MSMEs in West Bengal and policy intervention to address it. In spite of globalization and economic liberalization Indian MSME manufacturing sector is still using the traditional technology (almost 90%) compare to advance one. West Bengal is one of the major players of India in terms of Number of MSMEs and employment generation in that sector. It has 192 MSME clusters. Four types of clusters namely Rubber surgical and medical equipment (199 nos.), Glassware (42 nos.), Casting of iron and steel (200 nos.), Wooden Tools (862 nos.) have been considered by the researcher for the analysis of West Bengal field data. Before transferring any modern technology to the clusters stakeholders we have built an analytical framework the cluster properties:
• To understand the responsiveness of the technology transfer: We have measured the Responsiveness of Output due to change in capital and labour. Here we have used Cobb-Douglas production function to measure the output elasticity of capital and labour i.e., effect in output of the units with respect to change in inputs (capital or labour as considered in our model). The statistical significance of the model is also being validated on the basis of Variance Inflation Factor (VIC) and F-statistics
• The present efficiency level of the cluster units in terms of resource consumption: How efficiently the cluster units are using the factors of production. It is being observed through Data Envelope Analysis which allows comparing the relative performance of the units through benchmarking method.
• The barriers of technology transfer: The factors of inertia among the cluster stakeholders in technology adaption are being identified through a binary classification model. Here we have used the Probit model for the identification. The optimal model is selected through Akaike Information Criteria (AIC). The model is statistically validated through Receiver Operating Characteristics (ROC) curve and Durbin-Watson test
By analyzing the clusters we have found that all the clusters are operating at Increasing Returns to Scale (IRS), i.e., augmentation of factors of production capital or Labor will raise the output. Most of the units in each cluster are inefficiently using the inputs in their production process. It has also been observed that units higher output have higher acceptability of modern technology. Whereas acceptability of the same is very lower for the ancillary units. Existence of computer and account also affects the acceptability. This analysis will help policy makers to identify the strategy to increase the productivity of MSMEs. This will ultimately lead to maximize the efficiency of MSME units and also help to strengthen Indian economy.
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