Technology-Transfer.ppt

Business Environment
Technology Transfer

1. TECHNOLOGY TRANSFER

2. Technology Transfer
•Technologytransferistheprocessbywhichadeveloperof
technologymakesitstechnologyavailabletoacommercial
partnerthatwillexploitthetechnology.
•Technologytransfer(TT)istheprocessofsharingofskills,
knowledge,technologies,methodsofmanufacturing,samplesof
manufacturingandfacilitiesamonggovernmentsandother
institutions

3. •MostoftheIndianCompaniesbuytheupdatedtechnologyfrom
advancedcountriesasJapan,UK,Germany.
•InIndiawecanseethatManyJapaneseautomobileCompaniesare
runningtheirbusiness.
•PresentlyTataTelecom,Indiahasestablishajointventurewith
DOCOMO,Japanforitstechnology&services.

4. •Presently,transferoftechnologyisaveryimportantfactorwhich
fostersinternationalbusiness.
•MNCsbringnewproducts,newprocess&technologytohost
countries,whichmaybeoldinhomecountries,butrelativelynew
inthehostcountries.e.g.Cell-phoneinIndia
•TechnologyTransfertakesplacemostlyfromdevelopedcountries
intodevelopingcountries.

5. TechnologyTransfertakesplacemostlyfromdevelopedcountries
intodevelopingcountries.InternationalBusinessspreads
technologyby:
establishing the subsidiaries in developing countries
establishing joint ventures with the host country’s companies.
e.g.-Hero-Honda,MarutiSuzuki

6. •acquiringthehostcountry’scompanyormergingwiththehost
country'sfirms.e.g.
•transferringtechnologythroughtechnologicalalliances.e.g.

7. Users/beneficiaries of Technology Transfer:
•technology transfer agents who are responsible for the search,
adaptation or translation,
•Individuals responsible for technology transfer functions

8. •Inventors, Vendors, Licensors and Purchasers of technology.
•Individuals who are being trained to perform any functions

9. 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
•Needtokeepupwithcompetitors
•Lack of risk taking ability for innovation

10. Issues in Transfer of Technology
Appropriate
ness
Obsolesce
nce
Dependence
Cost
Issues in
TT

11. •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

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

13. •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

14. Methods of Technology Transfer
•PRODUCT TECHNOLOGY
•PROCESS TECHNOLOGY
•ORGANISATIONAL AND MANAGERIAL KNOW-HOW

15. PRODUCT TECHNOLOGY:
1.Provisionofproprietaryproductknow–how.
2.Transferofproductdesignsandtechnical
specifications.
3.Technicalconsultantswithsupplierstohelpthem
masternewtechnologies.
4. Feedback on product performance to help
suppliers improve performance.
5. Collaboration in R&D

16. PROCESS TECHNOLOGY:
1.Provisionofmachineryandequipmenttosuppliers
2.Technicalsupportonproductionplanning,quality
management,inspectionandtesting
3.Visitstosupplier,facilitatestoadviseonlayout,
operationsandquality
4. Formation of ‘cooperation clubs’ for interacting
with or among suppliers on technical issues
5. Assistance to employees to set up their own firms

17. 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)
3.3. Introduction to new practices such as network
management or financial, purchase and
marketing techniques.