Complexity in Technology Acquisition
Steps in Technology Acquisition
9 steps involved in a technology acquisition process are…
1 Identification 6 Negotiation
2 Need & justification for technology acquisition 7 Acquisition
3 Mode of technology acquisition 8 Implementation
4 Sources of technology 9 commercialization
5 Technology evaluation
Key elements involved in the processes …
o Identification of the mode of technology acquisition
o Identification of the potential technology supplier
o Sort listing of the possible suppliers
o Asserting the standing of the suppliers
o Consideration of offers from the more suitable sources
o Negotiations
o Analytical hierarchy process
Strategy for Technology Acquisition
1 Identification 5 Check offers
2 Short listing 6 Arrange magnitude
3 Acquiring information 7 Obtain commitments
4 Obtain TT offers 8
Implications for policy making
Studies have shown tat, in a majority of cases the distribution of
costs across the chain varies….
Research, Advanced Development & Basic invention 5 – 10 %
Engineering & Designing the product 10 – 20 %
Tooling manufacturing engineering, getting ready for
manufacture
40 – 60 %
Manufacturing start up expenses 5 – 15 %
Marketing start up expenses 10 – 25 %
4 interfaces…
Technical interfaces
Economic interfaces
Institutional interfaces
Behavioral interfaces
3 resource threshold…
Men
Equipment
MaterialFees / royalties
In house R & D in industry and National R & D infrastructure
In house R & D units recognized by DSIR More than 1230
National laboratories Around 325
Co operative research associations 13
SIROs 450
State funded research institutions 200
Universities and IITS 200
Human resources employed in R & D establishments 3 lakhs
Chemical & allied sector 35 %
Electrical & electronics 25 %
General Commercialization factor – CF 1:25
CF for public sector companies 1:17
CF for private sector 1:33
CF for small scales 1:18
Scientific & industrial research organizations
Medical – Agricultural – Natural – Applied sciences
450
Universities Around 200
Co operative research associations
Automobiles – textiles – rubber - other
13
Technology Acquit ion agreement
Definition
o The technology, the process, technical services etc.
being transferred should be clearly defined & specified.
Technology package
o Services provided by supplier
o Process parameters
o Designs & drawings
o Quality assurance technique
o Specifications of raw materials
o Training
Payments
o Agreement about – manner – modes – currency –
schedules
Duration
o Duration of the validity of the agreement
Access to improvements in technology
Guarantees by the supplier
o Guaranttee the performance of the technology
o Suitable intermediate measures on failure
Rectification – Compensation
Rights & Obligations
o Rights & obligations of the buyers should be clearly
specified
Identification
o Third party’s rights protected by a patent
Exclusivity or non exclusivity
o Right for the se of technology
Exclusive – conditional – Exclusive for a region –
Non exclusinve
Arbitration
o Mechanism for dispute settlement
Government low
o Specification of Law that would be applicable in case of
disputes
Role of DSIR in TT
DSIR Department of scientific & industrial research
Wide range of activities for the promotion – development –
utilization – transfer of technology
NRIDC National research development corporation
CEL Central electronics limited
PETSER Program aimed at technological self reliance
SEETOT Scheme to enhance the effective transfer of technology
NISSAT National information system for science and technology
CLRI Centre for lather research information
CFTRI Centre for food technology research information
CMTI Centre for machine tools information
CDRI Centre for drug research information
ATIRA Swedish pharmaceutical company
DSIRs annual support to R & D…
In year 1992 - 93 Rs 2 Crores
In year 1994 – 95 Rs 6 Crores
In year 1995 – 96 Rs 14 Crores
Steps in Technology Acquisition
9 steps involved in a technology acquisition process are…
1 Identification 6 Negotiation
2 Need & justification for technology acquisition 7 Acquisition
3 Mode of technology acquisition 8 Implementation
4 Sources of technology 9 commercialization
5 Technology evaluation
Key elements involved in the processes …
o Identification of the mode of technology acquisition
o Identification of the potential technology supplier
o Sort listing of the possible suppliers
o Asserting the standing of the suppliers
o Consideration of offers from the more suitable sources
o Negotiations
o Analytical hierarchy process
Strategy for Technology Acquisition
1 Identification 5 Check offers
2 Short listing 6 Arrange magnitude
3 Acquiring information 7 Obtain commitments
4 Obtain TT offers 8
Implications for policy making
Studies have shown tat, in a majority of cases the distribution of
costs across the chain varies….
Research, Advanced Development & Basic invention 5 – 10 %
Engineering & Designing the product 10 – 20 %
Tooling manufacturing engineering, getting ready for
manufacture
40 – 60 %
Manufacturing start up expenses 5 – 15 %
Marketing start up expenses 10 – 25 %
4 interfaces…
Technical interfaces
Economic interfaces
Institutional interfaces
Behavioral interfaces
3 resource threshold…
Men
Equipment
MaterialFees / royalties
In house R & D in industry and National R & D infrastructure
In house R & D units recognized by DSIR More than 1230
National laboratories Around 325
Co operative research associations 13
SIROs 450
State funded research institutions 200
Universities and IITS 200
Human resources employed in R & D establishments 3 lakhs
Chemical & allied sector 35 %
Electrical & electronics 25 %
General Commercialization factor – CF 1:25
CF for public sector companies 1:17
CF for private sector 1:33
CF for small scales 1:18
Scientific & industrial research organizations
Medical – Agricultural – Natural – Applied sciences
450
Universities Around 200
Co operative research associations
Automobiles – textiles – rubber - other
13
Technology Acquit ion agreement
Definition
o The technology, the process, technical services etc.
being transferred should be clearly defined & specified.
Technology package
o Services provided by supplier
o Process parameters
o Designs & drawings
o Quality assurance technique
o Specifications of raw materials
o Training
Payments
o Agreement about – manner – modes – currency –
schedules
Duration
o Duration of the validity of the agreement
Access to improvements in technology
Guarantees by the supplier
o Guaranttee the performance of the technology
o Suitable intermediate measures on failure
Rectification – Compensation
Rights & Obligations
o Rights & obligations of the buyers should be clearly
specified
Identification
o Third party’s rights protected by a patent
Exclusivity or non exclusivity
o Right for the se of technology
Exclusive – conditional – Exclusive for a region –
Non exclusinve
Arbitration
o Mechanism for dispute settlement
Government low
o Specification of Law that would be applicable in case of
disputes
Role of DSIR in TT
DSIR Department of scientific & industrial research
Wide range of activities for the promotion – development –
utilization – transfer of technology
NRIDC National research development corporation
CEL Central electronics limited
PETSER Program aimed at technological self reliance
SEETOT Scheme to enhance the effective transfer of technology
NISSAT National information system for science and technology
CLRI Centre for lather research information
CFTRI Centre for food technology research information
CMTI Centre for machine tools information
CDRI Centre for drug research information
ATIRA Swedish pharmaceutical company
DSIRs annual support to R & D…
In year 1992 - 93 Rs 2 Crores
In year 1994 – 95 Rs 6 Crores
In year 1995 – 96 Rs 14 Crores
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