MANAGEMENT OF TECHNOLOGY TRANSFER, ABSORPTION

MANAGEMENT OF TECHNOLOGY TRANSFER, ABSORPTION
& IPR
Introduction – Definition - Classification

Transfer of technology is a process essential for the wide application &
utilization of technology by one or more users.
Technology transfer has been defined as the process of bringing both
Knowledge & application of science & engineering to society & to
enterprises which do not employ this knowledge.
Technology transfer is as simple as making a photocopy of design
documents or obtaining a working artifact.
1980 – Production of inefficient refrigerators & the international trade of
used care.
 Government & end users – need to understand – costs &
benefits of a technology
 Innovator – need to understand – how to adopt the technology
 The firms – need to understand – how to market the technology
Martinot et – 1947 – The concept of technology cooperation to
technology transfer
Grubler & Nakicenovic – The concept of technology diffusion
 Diffusion – Technological change
Technology Transfer – two way learning process – Technology
communication
Technology transfer is a process that permits the flow of technology
from a source to a receiver.
 Source – Owner / Holder of the knowledge
- Individual – a company – a country
Jain & Triandis – technology transfer – Process by which science &
technology are transferred from one individual or group to another that
incorporates this new knowledge into its way of doing things.

The National Aeronautics & space administration - the process of
providing the technology developed for one organizational purpose to
other organizations for other potentially useful purposes.

Categories of Technology Transfer [TT] :
International TT TT across national
boundaries
Industrial countries to
developing countries
Regional TT TT from one region of the
country to another region
From Florida to Alaska or
Bangalore to Chennai
Cross industry /
Cross Sector
One industrial sector to
another
TT from the space program
to commercial applications
Inter firm TT TT from one firm to another TT of CAD expertise & CAM
machines
Intra firm TT TT within a firm from one
location to another
Bangalore division to Madras
division
One department to another
within the same facility

Channel of Technology Transfer
1) General Technology
 Unintentionally – May proceed without the continued
involvement of the source
 Information – Public domain with limited / no restrictions on the
use.
 Example …
 Education – Training – Publication – Conferences
 Study missions – exchange of visits
2) Reverse Engineering Channel
 No active contribution from the source include reverse engineering
 Duplication
 Example…
 Duplication of product B from the original product A
3) Planned Channels
 Intentionally – with the consent of the technology owner.
MB 009 – Management of Technology Transfer, Absorption & IPR
Page 3 of 24
Created By: Jigar Mehta – jigar_mehta@rediffmail.com
 Access – use – technological know how - permitted
3A) Licensing
 The receiver purchases the right to utilize someone else’s
technology.
3B) Franchise
 The source usually provides some type of continual support to the
receiver.
 McDonald’s
 Burger King
 Pizza Hut
3C) Joint Venture
 Combination of two or more entities
 International joint ventures
3D) Turnkey project
 A country buys a complete project form an outside source & the
project is designed, implemented & delivered ready to operate.
 Special provision of training / continued operational support
3E) Foreign Direct Investment - FDI
 A corporation, usually a multinational decides to produce or invest
some of its resources overseas.
 The investor gains – access to a labor force, natural resources,
technology & market
 The host country gains – technological know how, employment
opportunities, training
 The host country gains – tax advantages
3E) Technical consortium & joint R & D Project
 Two or more entities collaborate in a large venture
 The resources of one are inadequate to affect the direction of
technological change.
 Example …
 Consortium formed between France & England to develop a
supersonic plane (the Concorde)..
European Union [EU] Race A project to advance communication
technology
Espirit For the information technology
Jessi To bolster semiconductor research
Eureka Research program involved 24 nations
Japanese government MITI Ministry of international trade & industry
VLSI Japanese semiconductor industry
America
Cooperation between IBM +
Apple + Motorola
Power chip for the personal computer
Microsoft + NBC Future of multimedia industry
Apple + Microsoft Exploit each other’s strength in industry
Read table 1.2 : Stages of technology transfer process

Types of Technology Transfer
Scientific knowledge
Transfer
Traditionally associated with research &
development
Basic research & development
Information Exchange & presentations of technical
papers at scientific meetings & symposia
Direct Technology
transfer
Enterprise elements – internal integration
Enterprise – Enterprise
Government – Enterprise
Government – Government
Spin Off Technology
Transfer
Technology developed by one enterprise, in one
technical area & for one purpose is applied & used
for a different purpose in a different technical area
or market application.
The US government has introduced numerous
programs & expanded – Government & Military
purpose