Technology Transfer

Executive Summary

The notion of “technology transfer” has thrived for many years, but analytical studies, as opposed to diffuse empirical accounts of the phenomenon, have been in short supply until recently. The term is used in two rather different ways. One widely used meaning is the transfer of technologies from “upstream” generation, for example in scientific laboratories, to “downstream” usage in industry. The other meaning is more precisely termed “international technology transfer”, and refers to transmission of technologies across national boundaries, most often from a developed country to a developing one. Most of the entries here relate to the second of these meanings. The technology transfer is the diffusion of technological know-how and expertise concerning processes, methods of manufacture and innovative products across industries, within an industry or, in the international context, from country to country. Intra-industry technology transfer occurs when, for example, an exclusive patent accruing to one firm expires and other firms are then free to adopt the technology concerned, or alternatively, the rate and scale of diffusion may be speeded up if the patent or firm is prepared to license the technology to other firms. Technology transfer between countries often occurs as a result of the foreign market servicing strategies adopted by multinational enterprises (MNEs). For example, an MNE may choose to establish a manufacturing plant, incorporating innovative production techniques, in an overseas market, or grant licensing rights to local producers to use its technology. Different issues have been faced by the SMEs in their conduct of the technology transfer. These include the absence of technological assessment, lack of policies and plans, absence of suitable infrastructure, low levels of technical manpower etc.

TABLE OF CONTENTS

INTRODUCTION4

LITERATURE REVIEW6

Case Study of Developed Country6

Technology Transfer To and From Small to Medium Sized Enterprises in the United States6

Case study of Developing Country8

Technology Transfer To and From Small to Medium Sized Enterprises in the United States9

Licensing10

Setting up a Joint Venture11

Setting up a Wholly Foreign Owned Enterprise11

Barriers in Technology Transfer12

SENSITIVITY AND EFFECT ANALYSIS13

Issues Affecting Technology Transfer13

Need of Skills for Technology Transfer14

Example of Russia adopting Technology Transfer14

Reforms for Technology Transfer15

Instruments for Technology Transfer Assistance16

Policy of Science and Technology for Technology Transfer17

SUGGESTIONS/ STRATEGIES TO OVERCOME BARRIERS18

Separation of Research and Development18

Improvements21

Confidentiality23

Reverse engineering23

LEARNING OUTCOMES24

Highly Competitive Environment24

Benefits of Technology Transfer25

Learning Process for Technology Transfer26

Efforts for Improvement in Technology Transfer27

REFERENCES29

INTRODUCTION

The technology transfer is the diffusion of technological know-how and expertise concerning processes, methods of manufacture and innovative products across industries, within an industry or, in the international context, from country to country. Intra-industry technology transfer occurs when, for example, an exclusive patent accruing to one firm expires and other firms are then free to adopt the technology concerned, or alternatively, the rate and scale of diffusion may be speeded up if the patent or firm is prepared to license the technology to other firms. Technology transfer between countries often occurs as a result of the foreign market servicing strategies adopted by multinational enterprises (MNEs). For example, an MNE may choose to establish a manufacturing plant, incorporating innovative production techniques, in an overseas market, or grant licensing rights to local producers to use its technology (Levary, 1995, ...