UNIT IV

 Technology Transfer
 Technology Transfer Process
 Technology Transfer Modes
 Dimensions of Technology Transfer
 Routes of Technology Transfer

 Technology Evaluation
 Parameters used in Technology Evaluation
 Technology information- sources
 Technology Transfer
 Transfer of new technologies from universities and research institutions to parties
capable of commercialization.

 A process for conceiving and implementing a new/ novel application for an existing
technology
 Among Governments and other institutions
 to ensure that scientific and technological developments are accessible to a wider
range of users who can then further develop and exploit the technology into new
products, processes, applications, materials or services

Technolog Transfor
Ideas R&D Product
y mation
Technology transfer - definitions
 Technology transfer is the process that permits the flow of technology from
a source to a receiver.
 Technology transfer as the process by which technological innovations are
exchanged between individuals and organisations who are involved with
R&D and those putting technological innovations into use.
 A technological innovation is fully transferred when it is commercialised
into a product that is sold in the marketplace.
 Technology transfer can also take place through the new product
development process.
Drivers of Technology Transfer
 Two main drivers for technology transfer:
Technology “push” and market “pull”.
 Technology “push”
 Occurs when available technologies are channelled to perceived users in anticipation that the
market will need and use them.
 It happens when an innovator sees an opportunity to profit from a technology that has little or no
market at that particular stage.
 Often an entirely new market is created, based on the novel capacities of the technology.
 Market “pull”
 Springs from user needs and requirements.
 The requirements may originate from firms seeking better technologies to reduce costs or to
make improvements in the quality of their existing products.
 The technology needed may not yet exist, resulting in high-risk projects.
 Technology Transfer

Invention

Marketing Technology Innovation

(Diffusion) Transfer

Design
 Simple Example

• Incredible that people a million years ago invented the wheel that would
be useful for so long. They saw the need for such a device that would
make certain tasks easier – invention.
• Someone needed to device a way to utilize the wheel – innovation
• Turn idea into reality and implement other ideas to use the wheel –
design
• Further developments need promotion and device/idea needs to be
disseminated - diffusion
 Inventions

Some are nothing more than scientific curiosity for

years before being transformed into a working device,
prototype, or product
Utensils, mast for
100 Years
Aluminum sailboats window
(H. Saite-Claire frames – late 1950’s
Deville, 1854)
90 Years
Total Internal Fiber Optics
1971
Reflection
(William Wheeler, 1881)
43 Years
First I Prototype Gas
Theory of Lasing
discharge laser 1950
(A. Einstein, 1917)
 Inventions
Some inventions have immediate appeal

X-Rays Few Years 1900’s

(1895 – William Rontgen) Used in Medical
Profession
 Innovation

Invention Product

This period of development is characterized by INNOVATION!

 Realistic Model

Innovation – Embrace the entire Process

Technology Transfer – Means to achieve
innovation
Innovation

Technology
Invention Design Diffusion
transfer

Embraces the entire process

 Technology Transfer Process
 Defining the need or the market
 Searching for pertinent technologies
 Screening these technologies in terms of relevance and appropriateness
 Modifying the technology to suit local conditions, including social, political, cultural
as well as economic factors
 Demonstrating the values of the technology in social and economic terms
 Implementing the project in physical terms
 Diffusing the technology to relevant sectors of society including both producers and
consumers

https://books.google.co.in/books?id=nJKHAwAAQBAJ&pg=PA113&lpg=PA113&dq=mogavero+and+shane+1982+technology+transfer&source=bl&ot
s=hnmUPoaW6J&sig=ACfU3U3bEF5I9QkQtfFB37YULG2U56PF8A&hl=en&sa=X&ved=2ahUKEwjRxdzEurvlAhUKYo8KHQxnCbwQ6AEwBHoE
CAgQAQ#v=onepage&q=mogavero%20and%20shane%201982%20technology%20transfer&f=false
Technology transfer modes
 • Passive Mode (Dissemination).
 This mode consists mainly of knowledge transfer and involves collecting, screening and
disseminating information in response to a perceived or stated user demand. Examples are
cookbooks, self-teaching manuals etc.
 • Semi Active Mode.
 It moves from self-education and self-retrieval to the intervention of a knowledge or
technology transfer agent.
 • Active Mode.
 The active mode involves the participation of transfer agents as well as the interaction
between developers and the users of the technology
 UNIT IV
 Technology Transfer
 Technology Transfer Process
 Technology Transfer Modes
 Dimensions of Technology Transfer
 Routes of Technology Transfer

 Technology Evaluation
 Parameters used in Technology Evaluation
 Technology information- sources
Dimensions of Technology Transfer
 Time and resources required to transfer a Technology

 Dimensions are
 What is actually transferred
 The mode of transfer
 The absorption capabilities of the recipient enterprise
 The capabilities and motivation of the supplier enterprise
 Technology gap between the supplier and the recipient
Routes of Technology Transfer
 Direct Transfer and Indirect Transfer
 Direct transfer
 recipient enterprise engages a number of separate suppliers of technology to supply it directly with
the various elements of technical knowledge it needs
 The technology supplier and receiver are generally independent, non-affiliated enterprises.
 strictly legal contract of the transaction or contractual agreement

 Direct Transfer modes

 Licensing.
 Franchising
 Spinouts.
 Management Contracts
 Turnkey Contract
 International Subcontracting (Outsourcing)
 Machinery Supply Contract

Direct Method of Technology transfer

Indirect Method of Technology transfer

 Indirect Technology Transfer
 First the intermediary and recipient firms are parent and subsidiary companies respectively
which means that they are affiliated and not independent.
 Almost all the technological elements required by the subsidiary firm are owned and supplied
by the parent company, the few elements that may be obtained from other suppliers are
generally not the core production technology required by the subsidiary. In most cases these
comprise machinery and equipment not produced by the parent company.
 These are generally allowed to be shipped directly from the manufacturer (broken arrows) to
the subsidiary who sends feedback (reverse broken arrows) to the manufacturer in respect of
the performance of the machinery.
 Indirect transfer routes
 Joint ventures
 FDI
Routes of Technology transfer
 Licensing.
 the receiver purchases the rights to utilize someone else’s technology. This may entail an
outright purchase or a payment of an initial lump-sum amount plus a percentage of sales.
 Franchising
 Franchise, this is a form of licensing the sources usually provides some type of continual
support to the receiver. This is a channel commonly used in food chains and service
organizations such as Mc Donald’s, pizza hut, etc. .
 Spinouts.
 A spinout can be defined as a start-up company whose formation is dependent on the
intellectual property (IP) rights of the university and in which the university holds an equity
stake.
 Often, but not always, these firms are founded by the academic researcher responsible for the
invention.
 Management Contracts
 These include management, marketing and technical service contracts. These contracts
involve transfer of skills and technology in return for a fee.
 If a product, technology or brand name has been sold under a licensing agreement, the
licensee may need further assistance in maintenance of plant and equipment, marketing etc.
One problem with this form of international business is the maintenance of a working
relationship which is suitable to both parties to management contract.
 Turnkey Contract
 Turn key project, a country buys a complete project from an outside source and the project is
designed, implemented and delivered ready to operate special provisions for training or
continued operational support may be included in the agreement between the parties i.e.
equivalent to buying or selling the machine.
 International Subcontracting (Outsourcing)
 This occurs when a manufacturing firm in a developed country subcontracts the manufacture
of parts, components, sub-assemblies or even final goods to a firm in an LDC to take
advantage of lower labour costs or special incentives provided by the host government, e.g.
tax breaks.
 This form of contract has its origins in the US companies that operated in Mexico in the
1950s and 1960s. These companies would export parts and components, e.g. of electric or
electronic goods to Mexico to be assembled into final goods, thus taking advantage of lower
labour costs. The final products would be re-exported back to the US or exported to other
countries
 Machinery Supply Contract
 The supply of goods, especially capital goods such as machinery and spare parts, has been a
traditional way of transferring technology to developing countries. Many types of plant and
equipment, hand-tools, transportation and communication devices and even consumer goods
which the multinational company supplies in developing countries embody technologies
which purchasers learn to use. Even simple equipment carries with it the design, composition
of material used to produce it and, to a limited extent, the production method.
 Technical consortium on joint R&D project, here two or more entities are
collaborated in a large venture because the resources of one is inadequate to affect
the direction of technological change. Typically this type of venture takes place
between two or more countries or two large conglomerates. All these cooperative
projects aim to advance research, develop technology and transfer of knowledge to
participating member states
Indirect Transfer
 Joint venture
 FDI
Indirect Transfer
 Joint venture
 Joint Venture, two or more entities combine their interests in a business
enterprise in which they can share knowledge and resources to develop a
technology or a product or use their know-how to complement one another.
 FDI
 Foreign Direct Investment (FDI), a corporation usually a multinational decides to produce its
products or invest some of its resources overseas. This permits the transfer of technology to
another country but the technology remains within the boundaries of the firm (i.e still
controlled by the firm). This type of investment has advantages for both the investors and the
host country. The investor gains access to a labour force, natural resources, technology or
markets. The host country receives technological knowhow, employment opportunities for its
people, training for the work force and investment capital that adds to the development of its
infrastructure.
 UNIT IV
 Technology Transfer
 Technology Transfer Process
 Technology Transfer Modes
 Dimensions of Technology Transfer
 Routes of Technology Transfer

 Technology Evaluation
 Parameters used in Technology Evaluation
 Technology information- sources
 Evaluating the Technology
Large companies solicit proposal on new and innovative ideas. There will
be well defined criteria for the assessment of new proposals

 Is proposal consistent with company strategy

 Any synergy with existing efforts on projects
 Have the risks, advantages, potential payoffs, and implications been
considered in detail

Proposals may be evaluated by internal or external reviewers

For small companies, startups, they are contained in business plans.
Searching for Technology
 Very few small to medium size companies will have the necessary expertise or R&D
resources and infrastructure to provide new technology.
 Companies that want to develop something must be able to find other organizations
that can help them
 Information is key to finding new technologies
 Companies must know where they can go to find information on products, research
activities, finance, IP, etc.
 Using Higher Education Research and Development
Universities can often help small and big companies with R&D. The University often
offers much cheaper rates than a private research company.

 Access to new technology (A lot of pie in the sky stuff)

 Keep abreast of new developments
 Access consultancy skills
 Professors are possible technical board members
 Develop joint new technology, benefits both.
Sources of Information
 Inventors and Innovators need information available to them
 Knowledge – Base information – often academic and abstract, contained
in journals, scientific magazine, patents, and at conferences.
 Ex. Transmission of light through a glass fiber is limited by impurities in the
glass rather than inherent properties of glass. This was published in an archival
journal, but did lead glass manufacturers to improve the quality of glass by
reducing impurities – this paved the way for fiber optics
 Skills based information
 information acquired by doing something. It’s hands-on experience. Skills
learned by training and participation. Go to another institution where the skills
are practiced, or skilled personnel can be brought in.
Sources of Information
 Equipment based knowledge –
 Knowledge conveyed via products/devices. Knowing what machine tools are available and
what they do, what merchandise is available in the marketplace and what features it has.

 Also conveyed in trade journals, magazines, and conventions.

 Another information channel is through sales reps, advertising, other companies, etc.
 Where do I get Market
Information?
Customers 89%
Business contacts 82%
Competitors 82%
Suppliers 74%
Employees 70%
Trade representatives 67%
Business affiliates 63%
Industry experts 60%
Manufacturer’s salesforce 59%
Social networks 48%
Friends 48%
Subcontractors 41%
Consultants 33%
Family members 30%
Impersonal Sources of Information
Trade magazines 96%
Sales brochure 70%
Advertising 63%
National newspapers 60%
General magazines 56%
Journals 56%
Local newspapers 52%
Manufacturer materials 52%
Catalogs 51%
Annual reports 41%
Government publications 22%
 UNIT IV
 Technology Transfer
 Technology Transfer Process
 Technology Transfer Modes
 Dimensions of Technology Transfer
 Routes of Technology Transfer

 Technology Evaluation
 Parameters used in Technology Evaluation
 Technology information- sources