Technology transfer

technology transfer, technology management,case study on transfer of technology,

1. TECHNOLOGY TRANSFER PRESENTED BY: SATYA SNIGDHA DAS SOURABHA RAY

2. WHAT IS TECHNOLOGY TRANSFER Basically in two ways technology can be acquired: Develop it or Purchase it. Simply saying the second way of acquiring new technology is commonly called as technology transfer. Transfer of technology is a process which is very essential for the wide application,utilisation and upgradation of technology which has been developed.

3. DEFINITION Technology transfer is a process that permits the flow of technology from a source to a receiver. The source is the owner or holder of knowledge while the recipient is the beneficiary of such knowledge. Technology transfer is a process by which science and technology are transferred from one individual or group to another that incorporates this new knowledge into its way of doing thgings .( BY :Jain and Triandis ) It is the process of providing the technology developed from one organisation for other potentially useful purposes.( NASA )

4. CATEGORIES OF TECHNOLOGY TRANSFER CATEGORY DESCRIPTION EXAMPLE Horizontal technology transfer Near maturity technology may shift between countries Licensing Vertical technology transfer From R & D organization to a firm Nano technology International technology transfer Transfer across national boundaries From industrialized countries to developing countries Regional technology transfer From one to another region of the country Andhra Pradesh to Punjab Cross industry technology transfer From one industrial sector to another Space program to commercial application Inter-firm technology transfer From one firm to another Machine tool manufacturing firm to a producing furniture firm Intra-firm technology transfer Within a firm from one location to another Mumbai factory to factory at chennai .

5. MODELS OF TECHNOLOGY TRANSFER 1. Through bridging Agencies BRIDGING AGENCIES TECHNOLOGY SOURCES TECHNOLOGY USERS Bridging agencies : the govt. departments,financial institutions,industries,technology transfer agencies,consultants,venture capital companies,research companies,R&D organisations . etc

6. 2.Research And Development Diffusion Model DIFFUSION RESEARCH DEVELOPMENT ADOPTION KEY ENTITIES

7. 3.Problem Solver Model NEED FELT APPLICATION OF SOLUTION ARTICULATED AS PROBLEM SEARCH FOR SOLUTIONS CHOICE OF SOLUTION

8. 4.TECHNOLOGY TRANSFER SUMMARY MODEL ADAPTION COMMUNICATION UTILIZATION DEVELOPMENT

9. MODES OF TECHNOLOGY TRANSFER 1.THE PASSIVE MODE TECHNOLOGY BASE USER TECHNICAL INFORMATION Publications Computerised Data Base Personal Contacts Primary Innovator for Application of Technology

10. 2.THE SEMIACTIVE MODE Publications Computerized data bases Personal Contacts Secondary Innovator for application technology TECHNOLOGY BASE USER TECHNOLOGY TRANSFER AGENT TECHNICAL INFORMATION Primary Innovator for Application Technology

11. 3.THE ACTIVE MODE Publications Computerized data bases Personal Contacts Primary Innovator for application technology TECHNOLOGY BASE USER CHAMPION AND HIS TEAM TECHNICAL INFORMATION Secondary Innovator for Application Technology

12. ROUTES OF TECHNOLOGY TRANSFER Suppliers of Material and Parts Equipment Supplier Licensing Franchise Joint Venture Turnkey Project Foreign Direct Investment(FDI) Technical Consortium and Joint R&D Project

13. CASE OF TECHNOLOGY TRANSFER IN CHINESE AUTOMOBILE INDUSTRY The Chinese automotive industry :fast growing production and potential market, which attracts a lot of foreign automakers to establish strategic alliance in China. The automotive industry of China has been rapidly growing since the year 2000 . The annual vehicle production output of China increased from 2 million vehicles in 2000 to over 18 million vehicles in 2011 . Despite the fast development of the Chinese automobile industry, the lack of advanced technologies and independent research and development innovation is a major challenge for Chinese automakers. Technology transfer is seen as a key factor to help the Chinese automotive industry to gain access into the global market

14. The government has encouraged building joint venture Research and Development (R&D) centers in Beijing with advantageous tax policies in order to promote technology and knowledge transfer. In fact, large amount of global automakers have established joint ventures with local companies due to the requirement of current government policies. Despite the steady growth of R&D investment in China, the weak R&D capability still exists. Therefore, Chinese domestic automakers have started to buy foreign brands to acquire the advanced technology and access the world auto market

15. LEAD CHINESE AUTO COMPANIES AND THEIR JOINT VENTURES Chinese Automakers Foreign Joint Ventures BAIC (Beijing Auto) Beijing Benz, Beijing Hyundai Brilliance Auto, Huachen Auto Group BMW Brilliance Chang’an Auto ( Chana Auto) Chang’an -Ford , Chang’an-Mazda,Chang’an - Suzuki Changhe Auto, Chang’an Changhe Suzuki Dongfeng Motor Dongfeng Nissan , ZhengZhou,Dongfeng Honda, Dongfeng YuedaKia FAW (First Automobile Works) FAW Volkswagen , FAW Audi,FAW GM, FAW Mazada , FAW Toyota GAC ( Guangzhou Automobile group co.) GAC-Honda, GAC Toyota, GAC Flat,GAC Mitsubishi Geely Auto Volvo Cars SAIC ( Shanghai Automotive Industry Co.) Shanghai GM, Shanghai Volkswagen

16. THE CASE Two case studies were chosen and analyzed, the first being the technology transfer between the Swedish firm – Volvo Cars and the Chinese firm – Geely and the second being the technology transfer between the German firm – Volkswagen and the Chinese firm –First Automobile work

17. The Case of Geely and Volvo Cars VOLVO’S PERSPECTIVE Chinese automobile industry policy of making JVs with 50% shares. In order to stay competitive in Chinese market, Volvo Cars has to produce cars in China. Volvo’s decision of being going opposite way cause most of Western companies keep their core technologies in headquarters. Volvo want the way to transfer should be transfer to JV company directly by being in very controlled in intellectual property (IP).

18. GEELY’S PERSPECTIVE To take the benefit of Volvo Car’s complete system such as advanced platform, well-managed organization structure and intelligent employees. the whole Volvo is a system and it can survive by itself. But Geely offers them a way to reduce more cost and produce efficiently Volvo cars only had tiny market share in the huge Chinese market. However, the sales of Volvo cars have increased in the post JV years.

19. Technological capability Volvo using local engineers to produce cars locally. In Volvo’s R&D center in Shanghai, the majority of the engineers are local Chinese engineers they have regular seminars as well as training program in both Geely and Volvo Cars, which can help their employees to acquire know-how skills and enhance the speed of technology transfer due to the Chinese automobile industry are lack of maturity and are in the copy phase at the moment. It is also a big challenge for Swedish leaders to train people and develop people. , the cultural differences are challenging to both Chinese and Swedish engineers.

20. Case of First Automotive Work and Volkswagen   The FAW- Volkswagen Automobile was established in 1991, it is a joint venture passenger carmaker between FAW Group Corporation (share investments of 60%) and Volkswagen AG (share investments of 40%). FAW-Volkswagen adopts advanced technologies and equipment to manufacture some of the world’s most famous brands Automobile industry policy   There are three major motivations driving Chinese automakers to start partnership with foreign automakers: 1. Gain profits; 2. Learn skills and transfer knowledge; 3. Enhance the capability of the whole industry It was realised that Chinese automotive industry can be better developed through technology transfer.

21. It was a big challenge for China to produce their own cars in the 1980s due to the limited capability and high cost. Govt policy tried to change it. Technology transfer   For FAW-VW the technology of car manufacturing for example to laser-welding technology has been transferred from foreign automakers. So Lack of diversified technology lead to technology transfer.  Generally, foreign experts of VW come to FAW-VW’s plants in China to guide Chinese employees. Especially, every time they are going to invest in new products, their German partners will come to china company and work together

22. Moreover, sending employees regularly abroad or to their partner’s company to learn skills, exchange knowledge and gain experience is also an efficient approach. When it comes to the technology transfer difficulties,the experience and expertise of western industry was not so easily compatible. Environmental and design- related technologies need to be transferred. Due to FAW aims to reach the environmental polices that are launched by the Chinese government and implement the requirements of ISO 9001. Additionally, product-related technologies such as software which is used to improve the production system, as well as the material and manufacturing.

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