TECHNOLOGY TRANSFER

Technology Transfer

Technology transfer is the process by which a developer of technology makes its technology available to a commercial partner that will exploit the technology.

Technology transfer (TT) is the process of sharing of skills, knowledge, technologies, methods of manufacturing, samples of manufacturing and facilities among governments and other institutions

Most of the Indian Companies buy the updated technology from advanced countries as Japan, UK, Germany.

In India we can see that Many Japanese automobile Companies are running their business.

Presently Tata Telecom, India has establish a joint venture with DOCOMO, Japan for its technology & services.

Presently, transfer of technology is a very important factor which fosters international business.

MNCs bring new products, new process & technology to host countries, which may be old in home countries, but relatively new in the host countries. e.g. Cell-phone in India

Technology Transfer takes place mostly from developed countries into developing countries.

Technology Transfer takes place mostly from developed countries into developing countries. International Business spreads technology by:

establishing the subsidiaries in developing countries

establishing joint ventures with the host country’s companies.

e.g.- Hero-Honda, Maruti Suzuki

acquiring the host country’s company or merging with the host country's firms. e.g.

transferring technology through technological alliances. e.g.

Users/beneficiaries of Technology Transfer:

technology transfer agents who are responsible for the search, adaptation or translation,

Individuals responsible for technology transfer functions

Inventors, Vendors, Licensors and Purchasers of technology.

Individuals who are being trained to perform any functions

Factors affecting TT

Technology already developed saves time and effort.

Lack of internal resources for innovation

Lack of core competencies in firms of developing countries

Need to keep up with competitorsLack of risk taking ability for

innovation

Issues in Transfer of Technology

Appropriateness

Obsolescence

Dependence

Cost

Issues in TT

Cost: In many cases the developing countries obtain foreign technology at unreasonably high prices.

Appropriateness: technology that suits one country may not be suitable to other countries.e.g. Japanese & Korean automobile Industry design different types of cars which suits the Indian roads

Dependence: Heavy reliance on foreign technology may make the recipient technologically dependent on external technology providers even for small issues.

Obsolescence: It has been observed that there is a tendency to transfer outdated technology to the developing countries.

The owners of modern technology view the developing countries as a means of salvage technology that is obsolescent in the advanced countries

Methods of Technology Transfer

PRODUCT TECHNOLOGYPROCESS TECHNOLOGYORGANISATIONAL AND

MANAGERIAL KNOW-HOW

PRODUCT TECHNOLOGY:

1. Provision of proprietary product know – how.

2. Transfer of product designs and technical specifications.

3. Technical consultants with suppliers to help them master new technologies.

4. Feedback on product performance to help suppliers improve performance.

5. Collaboration in R&D

PROCESS TECHNOLOGY:

1.Provision of machinery and equipment to suppliers

2. Technical support on production planning, quality management , inspection and testing

3. Visits to supplier, facilitates to advise on layout, operations and quality

4. Formation of ‘cooperation clubs’ for interacting with or among suppliers on technical issues

5. Assistance to employees to set up their own firms

ORGANISATIONAL:

1. Assistance with inventory management and the use of just in time and other systems.

2. Assistance in implementing quality assurance systems ( including ISO certifications)

3. Introduction to new practices such as network management or financial, purchase and marketing techniques.

Thank you