TECHNOLOGY TRANSFER:

WHAT ?
HOW ?

HOPEFULLY YOU SHOULD BE ABLE TO ANSWER THESE

QUESTIONS AT THE END OF THIS SEMINAR

CIC nanoGUNE
Transferencia
Tecnologa

Cooperacin
Internacional

Excelencia
I+D
Formacin

2006

2009

2010

Comunicacin

2011

2012

2013

2014

2015

Prspero SL

What is
Technology Transfer?
A process for conceiving and
implementing a new/novel
application for an existing
technology (Reisman, 1989)

Is this worldwide definition shared?

Univ. of Missouri

Technology transfer is the process of taking an invention from

its inception in a laboratory to a commercialized product.
Obstacles to Effective Technology Transfer:
In the traditional view, overt commercialization is in contradiction
to the pure goal of scientific enquiry.
A technology developed by an organization for a particular purpose was further given to
other entities in order to exploit its potential in some areas.
A transfer/transformation/transition process between the technology originator/possessor
and the receiver

National Chi Nan Univ.

Univ. of Delhi

Technology Transfer is the process by which technology is disseminated.

It involves communication of relevant knowledge by the Transferor to the Recipient.
It is in the form of technology transfer transaction which way or may not be a legally binding
contract.

Goal of U.S. Technology Transfer:

Availability and Use of Innovations
Government
Research/Invent
Regulate
Public benefit
Consumer

Private Industry
Develop
Manufacture
Distribute
Market
Sell
Requires private
capital

Goal of EU Technology Transfer:

Availability and Use of Innovations
Government
Research/Invent
Regulate
Public benefit
Consumer

Private Industry
Develop
Manufacture
Distribute
Market
Sell
Requires private
capital

Overview of Technology
Transfer Process

One process transforms a

technology into a product.

Push and pull forces initiate

technology transfer.

Three critical events:

idea, prototype and product.

Four activity areas.

Five Stakeholder Groups

Technology Producers.
Technology Consumers.
Product Producers.
Product Consumers.
Resource Providers.

Members of the Five Stakeholder Groups

Stakeholder Group Members of Stakeholder Group
Technology
Producers
Technology
Consumers
Product Producers
Product Consumers
Resource Providers

Independent inventors; researchers in university,

federal or corporate laboratories.
Private sector manufacturers; government agencies;
intellectual property brokers.
Private sector manufacturers; distributors; valueadded retailers.
End-users; family members; professional service
providers.
Government agencies; private insurance companies;
technology transfer intermediaries.

Five stakeholder groups mapped

on process.

Composite of entire process.

Problems for Small Markets

Lack internal R&D resources.
Require access to external
technologies.
Lack knowledge of systematic tech
transfer process, and the expertise
required.
Serendipity is insufficient for
business planning purposes.

Intermediaries resolve problem.

Have knowledge of systematic process.
Have access to various stakeholders.
Have access to expertise and
resources.
Have experience in negotiating barriers
and applying carriers.

Successfully conducting
technology transfer requires
champions at each step
in the process.

Internal Technology Transfer

Internal Technology Transfer refer to such technology
transfers / investments where control on the
ownership & usage of technology resides with the
transferor.
It is a complex process involving following decisions:
Timing : When to introduce new technology /
products in the market?
Location : Where to transfer new technology /
products?
Multi-functional teams --Which staff members
should be involved in transfer process ?
Communication methods & procedures What
type of Communication methods & procedures be
adopted to facilitate transfer ?

Barriers to Internal Technology

Transfer
R & D goals are not known to Production Department.
Difficulties in stopping current production to test new
products / processes
R&D Department does not understand needs &
capability of Production Department.
In general, Production Department is resistant to
innovation and is bound by routine.
Non-linkage of new technologies to marketing /
customer needs.

Overcoming Barriers to Internal

Technology Transfer
Top management support and participation in the
transfer process
Providing supportive organizational culture
Use of multi-functional teams in the transfer process
Ensuring effective communication in the organization
Bringing R&D closer to production.
Rotation of few person between R&D and production
Linking & participation of marketing elements in the
transfer process.

Steps in Internal Technology

Acquisition by a firm
1. Planning new products / services / processes to be
offered planning must incorporate voice of the
customer & user needs
2. Screening new products, processes or services only
viable / feasible items be offered as only one out of
4/5 becomes a commercial success.
3. Initiating development process must be properly
designed and carried out so that it facilitates success.
Enterprises should
a. Consist of temporary system capable of adapting to
dymanics of change
b. Organize the systems around problem solving

Steps in Internal Technology

Acquisition by a firm
c. Have flexible management system & replace rigid
management system
d. Use multi-functional teams.
e. Proper integration between R&D, Production & Marketing
sub-systems
f. Ensure effective communication

4. Carrying out trial production on small scale and test

marketing
5. Improving design & production processes based on
experiences / feedback
6. Commercialization i.e. mass production & sales

External Technology Transfer

In these transfers, control on the ownership & usage

of technology usually does not remain with transferor
and it passes on to the recipient, like joint venture
with local control, licensing agreement etc.

External Technology Transfer

Successful external technology transfer depends upon
following factors:
Type of the technology being transferred
Complexity of the technology being transferred
Transfer mechanism selected
Relationships between the parties building of mutual
trust
Core competencies of the parties & compatibilty
thereof
Organizational culture of the parties & mutual
understanding thereof

Why External Technology Transfer

Technology already developed saves time & efforts
Sometimes Growth objectives or competitive goals
cannot be reached through internal development
Lack of risk taking ability for innovations
Lack of internal resources (physical & human) for
innovation
Firm does not have core competencies to deal with
complex technological developments.
Need to keep up with competitors
Need to cope up with acceleration of technological
change
As a part of firm strategy --- let other firms take
big risks & it will purchase technology
developed by them.

Methods for External Technology

Transfer
Co-operative & collaborative ventures / strategic
alliances
Licensing agreements
Contracting agreements
Enterprise acquisition.

Barriers for External Technology

Transfer
Associated costs usually high prices are required to
be paid in the form of royalities, technical & knowhow
fees etc over medium to long term period
Appropriatesness of technology i.e. its suitability to
core competencies and market needs is always a
point of discussion and investigation
Heavy reliances on foreign technology- may make
transferee / recipient technologically dependent on
external technology providers / transferors even for
small issues
Lack of mutual trust between two parties may hinder
full & timely transfer

Barriers for External Technology

Transfer
There is risk of loss of control over technology and the
transferee / recipient may use technology in an
arbitrary manner
Transfer may render existing technology & its related
products / services / processes obsolete
Transferee may turn a potential competitor in future.
Mismatch in core competencies of the transferor &
transferee may create difficulties in transfer
Different organisation cultures may create difficulties in
transfer
Lack of effective communication between the parties
may also create difficulties in transfer

Overcoming Barriers for External

Technology Transfer
Proper & well defined technology transfer agreement
should be signed
Proper assessment / evaluation of appropriateness of
technology
Proper assessment / evaluation of compatability of
core competencies of the parties
Building pre-agreement relationships so as to develop
mutual trust and so as to understand culture of
opposite parties
Seeking cross cultural training
Ensuring effective communication
Anticipating problems and adopting measures for
facilitating transfer

Steps in External Technology

Acquisition by a firm
1.
2.
3.

4.
5.
6.
7.
8.

Identification of Need
Developing list of suitable technology providers
Short listing / selecting suitable technology
providers on the basis . Cultural compatibility,
compatibility of core competences, appropriateness
of technology, technical feasibility etc
Negotiation
Agreement
Payments as per agreement
Transfer of specifications, blueprints, designs,
documents, CDs to purchaser
Training of technical personnel of purchaser

AGAIN,
Successfully conducting
technology transfer requires
champions at each step
in the process.