Wollo University

Kombolcha Institute of Technology

School of Mechanical and Chemical Engineering
Department of Industrial Engineering

Course: Entrepreneurship for Engineers

Chapter three : International Technology
Transfer and multinational Enterprises, Innovation

Instructor: Abraham A.

1 Kombolcha
 3. International Technology Transfer and multinational
Enterprises, Innovation

3.1 Technology Transfer Regulation, promotion , usage and

adoption by MSEs
 The National Technical, Vocational Training and Education

strategy of Ethiopia indicated that one of the objective of this

strategy is to create a system where by the colleges and institutes
shall be the center of technology transfer.
 Hence, the colleges and institutes shall imitate and transfer new,

best and appropriate technologies to the companies (MSMEs) to

improve their competitiveness in the global market.
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 Con…

 Appropriate technologies shall be designed to

solve local problems and contribute to the

national economic development.
 Industry Extension service(IES) shall be provided

to micro and small enterprises (MSEs) upon

identification and documenting their problems to
build their capacity on the basis of need
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assessment.
 Con…
 IES shall be based on market orientation and

prioritization of the existing enterprises and

model enterprises.
 IES includes need assessment, provision of

training, consultation, technology development

and transfer, documentation and scaling up of
best practices.
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 Con…

 Industry extension framework includes four

packages including 1)Entrepreneurship,

2)technology, 3)skill training, 4) “Kaizen”.
 Technology transfer stakeholders includes
successful companies, collages , universities,
Micro and Small Enterprise development and
job creation office, Small and medium
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manufacturing office.
 3.1.1 Industry Extension Framework in Ethiopia
Integrated Market Process
Capacity
Building
Technology infrastructure Certification of
Identification of Technical skill competence
gaps on MSEs Technology capacity /COC/
Entrepreneurship
Quality & productivity

Needs of New Matured Enterprise

Economic infrastructure (in terms of:-
Enterprise  production& sales space
Skill,  job created,
 Legal Issues
technology,  Market opportunities  use of technology
Entrepreneurship  productivity and
Productivity  organization
Financial
infrastructure
 loan
 Machinery lease

Direct
supply GTP MSE
Impact
Sub assessmen development
Impact
contracting t priority sectors
assessme
Market
nt Competiti of
ve
6 product & Product or
service
 3.2 What is Technology Transfer(TT)?
 Technology transfer is the transmission of knowledge in

 a continuous,
 frequent, and
 strategic manner,
which is applied to researching in technological
agencies, laboratories, universities, and any institution
capable of generating knowledge

(Solleiro,2008 and Urbano,2013).

7
 Con…

 Woerter (2012) notes that companies get involved in

transfer activities in order to update and modify its

knowledge base and consequently, improve their
competitiveness.
 TT is conceiving of a new application for an existing

technology (Reisman,1989)

8
 Con…
 TT is a mechanism in which industrialization process and

economic development can facilitated.

 Technology Transfer has been used to refer to the

following
1) Licensing of intellectual property right to manufacturer

2) Reduction of Idea to practice in a prototype-

3) The process of recording concepts of technology “know-

how” in a professional paper or patent application

(Dakin,1991).
9
 Con…

 Within TT transforming technology to product

involves generating ideas ,reducing these ideas into
practice( prototypes) ,then testing and refining
prototypes till they become ready for production and
commercial distribution (Pillip,2017).
 Hence, TT is the process for applying known

technologies to new and noble application

(Pillip,2017).
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 Con…
 Transformation of technology to product involves three

critical events
1) idea (identification of new discovery or existing technology
and match it to a new or novel application area but yet not
tangible development),
2) prototype- technology embodied in hardware, software, a
process or a system) and
3) product-when the prototype is refined, ready for production

and distribution in the market place( Roger,1995).

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 3.2.1 Why Technology Transfer?
1. Technology Innovation improves product

 products have not only useful features but also

limitations
 Thus, to improve the feature and functions of their

products to meet existing and new demands, companies

should either develop new technologies from internal
resources or seek opportunities to incorporate externally
developed technologies.
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 3.2.1 Why Technology Transfer?

2. Technology Transfer offers cost effective innovation

 The objective of technology is to apply technologies from

any source to develop new or improved product feature

and function in a cost effective manner.
 Companies need systematic process in handling procedures

in acquiring external innovations may be in the form of

ideas for technology, prototype or product to insure cost
effectiveness.

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 3.2.2 Stages of technology transfer process?

 The technology transfer stages depends on their

realities, such as observations and experiments for

research activities often lead to discoveries and
inventions by researchers, Entrepreneurs.
 Rating necessary patent search and analysis technology

market and competition to determine the marketing

potential of the invention

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 3.2.2 Stages of technology transfer process?

 Protection:

The process in which the protection for an invention

can be performed pursued by patents, but may also
involve other methods, including copyright and
intellectual property, trademarks and contractual
restrictions on use.

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 3.2.2 Stages of technology transfer process?

 Marketing

 It candidate companies which have the expertise,

resources, and necessary relations to bring the

technologies to market are identified.
 This may involve association with an existing company

or create a new company or start-up or existing

businesses

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 Con…

The licensee performs the necessary steps to develop a

product or service fully marketable investments.

 This step involves regulatory approvals, generating sales

network, and marketing support, staff training, and other

activities and organized among them

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 3.2.3 Two Forces initiating TT

1. Supply push
 When the TT is initiated by someone who has knowledge
of technology and who is seeking to apply that technology
to a new product-
 The technology supplied is pushing towards the market

place in search of unsatisfied demand( Paul,1989).

Ex. Inventors, researchers.

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 3.2.3 Two Forces initiating TT

1. Demand pull
 When the TT is initiated by who have knowledge of

unsatisfied demand for a product and who is seeking

appropriate technology to satisfy the demand
 the demand for the product is pulling a technology

towards it(Von Hipple,1986).

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 Technologies
required for 3.3 Diffusion and Mechanisms of Technology Transfer
competitiveness process & MSE

Making valu chain analysis Idenetification &

(VCA) for different selection of best Conservation of the Best Technology
industries based on national technologies based on best technology transfer
strategic farameworks the result of VCA

Identify development Identification of the Getting the selected

sectors & goals technology & insuring Transferring the
best systems /methods its demand technology

Identification of gap b/n the

existing system ( cause the Build the capacity of the
Making Value analysis Technology analysis industry(ies) for application
Mapping for industries problem)and new (Blue Print) of the technology
system( new solution to the
problem) ውጤት
አላመጣ Assessing the
ም
Preparation of design impact of the
technology
and prototype
identification and
production ውጤት
Problem identification selection of the best አምጥቷል
& prioritizing them technology that can fills Sustainable use of the
the existing gap የለም Technology technology
tested & ready
for application
(use) Technology that
አዎ insures
20 competitiveness
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3.4 Intellectual Property Rights and the Appropriateness of
Technology

 Intellectual property law regulates the creation, use and

exploitation of mental and creative labor.

 It is a general area of law that encompasses copyright,

patents, industrial designs and trademarks (Habtamu,2012).

 Intellectual Property Rights (IPR) protects the most valued of

all creations — the human mind.

 The human mind invents, creates, and develops a new

product
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 Con…

 IPR protects the creator’s interests and sees to it that

they get exclusive rights over their products and

receive the benefit from their product.
 The product can be anything from a new invention to

a literary work or even symbols (K. Hemant,2019).

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 Con…

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 Four types of major IPRs
1) Trade mark (TM):

 TM is any visible sign capable of distinguishing goods or

services of one person from those of other persons

 It is a unique sign that helps us to identify a product.

 trademarks promote trade activities and are legally

protected all over the world.

 They can include symbols, drawings, 3D images, as well as

holograms and other non-visible signs

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 Q-What does these symbols stand for?

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27
28
 Con…

2) patent:-
 It is a property right granted to an inventor for an

invention.
 The right conveyed by a patent is the power to exclude

others from making, using, or selling an invention for a

set period of time
 There are three different kinds of patents: utility patents,

design patents and plant patents.

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 Con…

1)Utility Patents: The most common type of patent, these

are granted to new machines, chemicals, and processes.

2)Design Patents: Granted to protect the unique
appearance or design of manufactured objects, such as
the surface ornamentation or overall design of the
object.
3)Plant Patents: Granted for the invention and asexual

reproduction of new and distinct plant varieties,

30 including hybrids
 Con…
Examples of Patentable Items. These categories include
practically everything made by humans and the processes for
making the products. Examples of things that are patentable
include:
 Computer software and hardware;

 Chemical formulas and processes;

 Drugs; Medical devices;

 Furniture design;

 Jewelry;

31  Musical instruments.
 Con…

3) What’s Copyright?
 It is a collection of rights automatically vested to you once you

have created an original work.

 These rights include the right to reproduce the work, to

prepare derivative works, to distribute copies, to perform the

work publicly, and to display the work publicly.
 A copyright owner is authorized to keep or transfer the rights

to one or more people through licensing, assigning, and other

forms of transfers.
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
 [Link] secrets

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34
4) Trade Secrets

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  Why guaranteeing IPRs?

 The protection of intellectual property is important not only

for promoting innovation and creativity but also for

developing employment and improving competitiveness.
 The protection of intellectual property should allow the

inventor, or creator to drive a legitimate profit from his/her

creation or invention; allow the widest possible dimension
of works, ideas , new know how.

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