ABSTRACT
This chapter describes work which has been done, mainly in Nepal, on much smaller-scale systems which maximise the use of local skills and materials. Water power is being developed for generating electricity to provide lighting more cheaply than using kerosene by adapting modern technology and incorporating traditional knowledge of water mills and irrigation systems. The chapter deals with the issue of weaknesses of research and development (R&D) systems in developing countries. It aims at specifying the general and particular or minimum requirements for building effective indigenous technological capabilities in developing countries. The limited impact of science and technology policies and R&D programmes on productivity is largely due to the fact that very little consideration has been given to the micro-economic level where problems of production do arise.
