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Understanding Technology Transfer Types

Technology transfer is the process of applying technology developed in one organization to another organization. It involves transferring technical aspects like knowledge, skills, and equipment as well as cultural and organizational aspects. There are different models and stages of technology transfer. Key factors that influence successful transfer include characteristics of the transferring and receiving organizations, as well as industry, regional, and national conditions. Technology transfer can help reduce the technology gap between developed and developing countries.
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0% found this document useful (0 votes)
139 views15 pages

Understanding Technology Transfer Types

Technology transfer is the process of applying technology developed in one organization to another organization. It involves transferring technical aspects like knowledge, skills, and equipment as well as cultural and organizational aspects. There are different models and stages of technology transfer. Key factors that influence successful transfer include characteristics of the transferring and receiving organizations, as well as industry, regional, and national conditions. Technology transfer can help reduce the technology gap between developed and developing countries.
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Technology Transfer
 Technology Transfer is the process by which technology
developed in one organization in any area can be applied
in another organization for another purpose.

 Success of any programs is highly dependent on the


effectiveness of communication which ultimately proceeds
in implementation.

 Transfer of technology is defined as “Logical Procedure


that controls the transfer of any process together with its
documentation and professional expertise .
 Technology Transfer is helpful in various ways as it provides
efficiency in process, maintains the quality of product to
achieve standardized process.

 Different Aspects of Technology.


1) Cultural Aspect – Contains Goals , Values , Morals,
beliefs, awareness & creativity.

2) Organizational Aspect - Includes industrial, economical,


professional and technical activities along with
customers as well.

3) Technical Aspect – Knowledge, Skills, Techniques,


Tools, machineries & other production equipments.
 Commercialization – It’s the process of transforming new
technologies into commercially successful products. It
also includes efforts as market assessment, product
design, manufacturing, engineering, management of
intellectual property rights , marketing strategy
development and raising capital.
Example – Pharma Industry
Classification of Technology Transfer

 Vertical Transfer – It refers to transfer of technology from basic


research to development & then to production.

 Horizontal Transfer – Refers to the movement and use of technology


used in one place, organization, or context to other place.

 Material Transfer – Refers to transfer of a new material or product.

 Design Transfer – Corresponds to transfer of designs or blue prints


that can facilitate the manufacturing of material or product.

 Capacity Transfer – Involves the transfer of Know why * how to adapt


and modify the material or product to suit various requirements.
Technology Transfer Models
 The more complex configuration of stages in the interaction between
transferor and transferee are technology transfer models .

 Usually, such models include the following: (1) proposal and


planning, including a techno-economic analysis to establish the
project, including location and preparing a business case and
resources; (2) identification of technologies needed to be transferred.

 (3) basic engineering studies, specifying details of the plant to be


designed; (4) detailed civil engineering plans, plant construction, and
production startup; (5) selection of local suppliers for equipment and
subcontracting services, adapting the process and product if needed;
 (6) training and improving local skills for transferred
technology; and (7) providing external support to
strengthen the relationship between sender and recipient.
Transfer models show that transferees from developing
countries should be involved at all stages of the process
from the beginning; the transfer does not end with the start
of technology usage, and it should be supported with the
training of engineering and worker skills
Factors Influencing Technology Movement

 4 Categories - firm-specific, industry-specific, region-specific, and


nation-specific.
 At the company level, barriers and factors of success include
stakeholder awareness of foreign technologies, internationalization
and connections with research institutions, relationships between
transferor and recipient, and level of education and technological
capabilities of the workforce.

 Industry-specific factors include the level of market development and


profitability and political and regulatory conditions for the sector & on
regional and national levels, factors include political support for
industry, the openness of trade, investment regime, quality of
institutions, business risk, availability of human capital, cultural
values and norms, local needs, and relations between academic,
political, and business organizations
Technology Gap
 A technology gap between developed and developing countries
influencing world poverty can be reduced by technology transfer.

 The effective transfer can be established by engagement, financial


and training support of industrialized countries, corporate
responsibility, international organizations, and determination of global
south countries' governments.

 In the past, programs often failed because of problems such as the


selection of technologies from uncompetitive areas, lack of human
capital, lack of engineering studies (e.g., resulting in a large
displacement of people and destruction of agricultural lands), lack of
intellectual rights protection, and investment by companies that are
owned and controlled by overseas investors, and thus do not support
the citizens of developing countries.
International Technology Transfer
 this transfer is across national boundaries. For example technology
transfers from industrialized countries to developing countries.

 Regional technology transfer, the technology is transferred from one


region of the country to another, for example from one state to other
state within the country.

 Cross Industry or cross sector technology transfer, the technology is


transferred from one industrial sector to another, for example the
technologies transfer from the space program into commercial
applications
 Inter firm technology transfer; the technology is transferred from one
firm to another. An example is the transfer of Computer Aided
Design (CAD) expertise and Computer- aided manufacturing (CAM)
machines from a machine tool manufacturing firm to a furniture
producing firm.

 Intra firm technology transfer, this technology is transferred within a


firm from one location to another. An example is the transfer of
technology from a company in Mumbai division to Chennai division
i.e. it also be made from one department to another within the same
facility.
STAGES OF TECHNOLOGY TRANSFER PROCESS

 Technology is not a homogeneous phenomenon. There are different


types of technology, each posing fundamentally different problems
and demanding different solutions in the international technology
transfer process.

 The model is a relocation/absorption paradigm because the transfer


process is differentiated into two general stages2 (1) Technology
relocation (2) technology absorption.

 The transfer of technology between countries particularly for rich to


developing nations proceeds in five different stages.
 First stage including sales and licensing agreements covering all
forms of industrial property including patents, investors certificates,
utility models, industrial design trademarks , service names & trade
names, etc.

 Second stage covering the provisions of Know-how & technical


expertise in the firm of feasibility studies, plans, diagrams, models,
instructions, guides formulations, service contracts & specifications &
involving technical, advising and managerial personnel, personnel
training & equipment for training.

 Third state covering the provision of basic or detailed engineering


designs and installations and operations of plant and equipment.
 Fourth stage including leases and other firms of
acquisition of machinery, equipment, intermediate goods
and /or raw materials so far as they are part of
transactions involving technology transfers.

 First state includes Industrial and technical co-operation


agreements of any kind, including turn-key arrangement,
international sub-contracting as well as provision for
management and marketing services

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