Technology

transfer
 ▪ Introduction
▪ Ways technology is transferred
Objectives ▪ Constituents of technology transfer
▪ Factors affecting technology transfer
 ▪ Technology transfer is the process of sharing of skills,
knowledge, technologies, methods of manufacturing,
samples of manufacturing and facilities among
organizations
▪ Technology transfer is “defined as transfer of new
technologies from universities and research institutions
to parties capable of commercialization”
Technology ▪ Technology transfer is the movement of data,
transfer designs, inventions, materials, software, technical
knowledge or trade secrets from one organisation to
another or from one purpose to another. The
technology transfer process is guided by the
policies, procedures and values of each
organisation involved in the process
 ▪ Transfer of Technology: It refers to the movement of
Technology innovations, knowledge, and techniques from one
organization or country to another through assistance,
transfer investment, licensing, trade, or training.
 ▪ Technology transfer is the process of transferring
scientific findings from one organization to another for
the purpose of further development and
commercialisation.” The process typically includes:
▪ Identifying new technologies
Technology ▪ Protecting technologies through patents and copyrights

transfer ▪ Forming development and commercialisation strategies

such as marketing and licensing to
▪ existing private sector companies or creating new startup
companies based on the technology
 Transfer can be between:
▪ Public Universities or Government Research Institutes and
private industry,
▪ between the research and development (R&D)
departments and the other departments of a single
business
▪ between various entities or branches of a business group
Technology in a franchising operation from the franchisor to the
franchisee
transfer ▪ between international organisations and national
organisations
▪ between industrialised economies and developing
economies
▪ transfer of technologies across international borders,
generally from developed to developing countries
 ▪ Technology transfer usually involves some source of
technology, group which posses specialized technical
skills, which transfers the technology to a target group
of receptors who do not possess those specialized
technical skills, and who therefore cannot create the
tool themselves (Carayannis et al., 1997)

Technology ▪ Technology transfer is usually the first step in

technology commercialisation. This also implies that
transfer unless a technology is actually used, it has not been
successfully transferred and will not ultimately provide
public benefits. A “technology” may be an invention, a
prototype, finished device, or know-how

▪
 ▪ Technology travels through many channels and
universities, to businesses. It then moves from large
businesses to smaller ones, from governments to
businesses, across borders and so on.
▪ Technology transfer occurs generally due to the need
to share skills, technologies, knowledge, manufacturing
Technology methods, facilities among governments, universities
transfer and other institutions.

▪ The aim is to ensure that scientific and technological

developments become accessible to a wider and larger
group of users, who can then further develop and
exploit the technology to generate new products,
processes, applications, materials, or services.
 Varied Roles 9

IDEA
Start-up
Firms Research
Universities

R&D Development Research

Firms Institutes
Production

Manufacturing
Larger
Companies
Distribution

MARKET
Harare Institute of Technology
 R&D Units Companies
• Universities • Supplier of technology
• Public Research and R&D to third parties
Centers • Spin-off, start-ups
• Technology Institutes • Large R&D
Technology (institutions, labs etc) department
Transfer Agents • Competitors,
suppliers…
(technological alliances)
 ▪ If the inventing organization is a private company, it may not have
the resources needed to bring the technology to market, such as a
distribution network, sales organization, or simply the money and
equipment for manufacturing the product (these resources are
called complementary assets)
▪ If the inventing organization is a government laboratory, that
laboratory is forbidden in general by law or policy (in the United
States) from competing with the private sector by selling products
or processes. Therefore, the technology can only be brought to

WHY TRANSFER market by a private firm

▪ If the inventing organization is a university, the university usually
TECHNOLOGY? does not have the resources or expertise to produce and market
the products from that technology. Also, if the technology was
developed with funding from the federal government, the
government may strongly encourages the university to transfer the
technology to a private firm for commercialization.
 ▪ ; From the recipient:-
Increase corporate presence and competition in a given
market
Spread risk i.e firms develop technology thus help them
minimize the risk
To minimize on the areas with lower operating task e.g
IMPORTANCE OF licensing franchising in other words having the technology
the operating costs are high they take the technology where
TECHNOLOGY they are low operating costs i.e Sony provided in Singapore,
TRANSFER Toshiba, Nokia etc.
To increase the overall company's profitability
To overcome capacity limitations, no one firm can produce
for the whole world.
Enhance economic growth and development in the firms
or organization
 ▪ Technology can be transferred between countries or
regions, but most technology transfer happens between
companies. Not only is research and development done
by institutions in the public domain like universities, but
Company-to- also by private companies outside the public domain.
▪ Cooke and Mayes5 identified the main aims of
Company collaboration between companies as follows:
Transfer ▪ Sharing risk • Sharing cost• Helping in product
development • Developing industry standards together
• Acquiring and/or penetrating new markets •
Improving speed to market
 ▪ Developing new products is a risky and costly business
and therefore companies will rather share the risk and
Company-to- cost involved in these projects. Companies also feel
more assured if they concentrate on a business area
Company they are familiar with, while leaving other aspects to
Transfer partners that are more familiar with business in those
areas.
 ▪ The transfer process of technology can be coupled to
the general innovation process. Technology transfer is,
however, not present in every step of the innovation
process and we will only look at those steps where
transfer is involved.
▪ The steps can be defined as follow:
Technology ▪ Recognizing a need or opportunity
▪ Searching for the technology-
Transfer Process ▪ Finding the appropriate technology
▪ Evaluate the technology
▪ Acquire the technology
▪ Protect the technology
▪ Customize the technology
▪ Operate the technology
 16

Entire Technology Transfer Process

 ▪ Transfer of technology takes place via certain
mechanisms. These mechanisms can be identified per
area of technology
▪ In print through technical journals
▪ In print through learned journals • Scientific magazines
Mechanisms used • Patents • Orally at conferences • Orally at learned
in technology societies • In discussions with colleagues • In
discussions with acquaintances • In discussion with
transfer consultants • On television or radio • Courses • Service
bulletins
▪ Watching someone doing something • Watching a video
of someone doing something • Demonstrations at
courses • Hands on training
 ▪ Consulting
▪ Graduating students

Ways ▪ Faculty
▪ Collaborative research
“Technology” is
▪ Patenting and licensing
transferred ▪ Service and outreach
 ▪ Wholly owned foreign subsidiaries (conventional form
of foreign direct investment)
▪ Joint ventures
▪ Foreign minority holdings
Modes of ▪ "Fading-out" agreements
international ▪ Licensing agreements
technology ▪ Franchising
transfer ▪ Management contracts
▪ Turnkey contracts
▪ Contractual joint ventures
▪ International subcontracting
 ▪ An agreement between the owner of the technology
(Licensor) and the receiver (Licensee) which gives the
right to use the technology developed or owned by the
transferring individual or company for a specified time
period is known as licensing.
▪ The two broad categories of licensing include the one
which grants exclusive rights to use the technology and
Licensing another which grants non-exclusive rights wherein the
owner reserves the right to further transfer the
technology to other company apart from the receiver. It
may also include the right to sub-license, permitting the
licensee to grant someone else the right to use the
technology.
 ▪ – The company executes a joint venture agreement with
respect to technology transfer for a particular business
Joint Venture with a vision to incorporate long-term cooperation
between the parties, the motivation of all participants in
Agreement the successful transfer, and to incur lower costs as
compared to working independently.
 ▪ Franchising– It is one of the most preferred methods of
transferring technology. The companies generally transfer
technical know-how or skill involved under this type of
agreement.
▪ Original Equipment Manufacturer– It is a kind of sub-
contracting agreement wherein a foreign company
transfers a relevant portion of its technologies and a local
company manufactures according to the specifications in
the agreement. Such agreement enables local companies
and firms to absorb technologies and restructure their
Others production mechanism
▪ Buy-Back Contracts– It is a form of agreement between
stakeholders from developing countries and large foreign
companies, wherein a foreign company supplies industrial
equipment in exchange for profits derived from the sale of
raw materials or goods produced. This kind of technology
transfer is often used in the construction of new plants and
other related businesses
 FUNCTION OF TECHNOLOGY 23

TRANSFER TEAM
1) Coordinate- Coordinating between technology users and
developer, between researcher and manufacturers is an
important element of technology transfer.

2) Nurture- A main ingredient for moving technology from a

research laboratory to a new business enterprise successfully
in an environment that is supportive for entrepreneurship.

3) LINK- Cataloging resources related to business enterprises &

connecting would be entrepreneurship / researcher and other
technology developers to outside group & organization which
can help in the process of starting new product, companies etc.
such linkage provides referrals for individual business
counseling, sources of financing.
 FACTOR AFFECTING TECHNOLOGY 24

TRANSFER
TIPS Method ( Technology implementation Potential for
Success)

Communication Factor TIPS

Financial Factor TIPS

External Factor TIPS

Human Factor TIPS

Corporate Factor TIPS

Technology Factor TIPS

 ▪ Technology import regulations i.e specify what you can
import and what you can export also handled by
different regulators i.e a firm would wish to engage in
genetic food engineering. Which has to be discussed.
▪ Capital regulations by home and host countries i.e
Barriers to capital markets you need to know how immigrations
technology and work permits, training and expertise, direct foreign

transfer ▪ System of bureaucracy:-(system of procedures) both at

the organizational level and government level i.e
licensing will be delayed.
▪ Institutional conflicts of interest i.e political
disagreement on the organizations(personality crashes)