ROHITH C

B
MGT
1205030
IMK
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 may or
may not be a legally binding contract.
Scientific Knowledge Transfer
Direct Technology Transfer
Spin-off Technology Transfer
Scientific Knowledge Transfer is traditionally
associated with transmission of knowledge gained
through basic research & development activities.
Knowledge transfer usually takes place through
information exchange and presentation of
technical papers at scientific meetings and
symposia.
Direct technology transfer usually occurs through
formal arrangement between any of the following:
1. Enterprise elements ie., internal transfer, sharing
and dissemination within the same organisation
2. Enterprise to Enterprise
3. Government to Enterprise
4. Government to Government
Spin-off Technology Transfer occurs when technology
developed by one enterprise in one technical area, and
usually for one purpose, is applied and used for a different
technical area, for different purpose or for market application
other than those foreseen at the time when R&D was
initiated.
Technology may be transferred through formal and informal processes.
Informal technology Transfer involves the following informal
methods/processes:
1. Exchange of technical information through published matter either in
print media or electronic media, scientific meetings, scientific
symposia, individual exchanges between scientists/researchers
2. Process of training scientists in academic research institutions
3. Acquisition of critical technical personnel
Formal Technology Transfer involves outright
procurement of technology through its sale, licensing or
acquisition of the enterprises in which technology is
embedded. Formal agreements are signed between
interested parties which could be Governments,
enterprises, individuals, research entities etc.
Internal technology transfer refers to such technology transfer
where control on the ownership and usage of technology
resides with the transferor.

Internal technology transfer involves movement of technology
from R & D department to manufacturing units and then to
marketing of products/services in the target markets.

It is a complex process involving the following
decisions :
1. Timing : This decision is a function of pre-emption of
competition ie., guided by the objective of preventing
the competitor from gaining any technological
advantage.
2. Location : This decision is influenced by
technological and marketing skills and capabilities of
the organisation, technological relationship and
dependence of suppliers and customers.
3. MULTIFUNCTIONAL TEAMS :
This decision is influenced by complexity
and importance of project, and availability of
experts of requisite expertise.
4. Communication methods and Procedures :
This decision is largely influenced by
organisational systems and complexity and
importance of projects.
R & D goals are not known to prdn department
There are difficulties in stopping current
production to test new products/processes.
R & D department does not understand the
needs and capability of prdn department
Prdn department is resistant to innovation and
is bound by routine.

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

Successful external technology transfer depends upon the
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 and compatibility thereof
Organisational culture of the parties and mutual understanding
thereof
Some of the commonly used external
technology transfer mechanisms are as :

Cooperative and collaborative ventures
Licensing agreements
Contracting agreements
Enterprises acquisition
Technology already developed saves time and effort
Growth objectives or competitive goals, cannot be reached
through internal development
Lack of risk raking ability for innovations.
Lack of internal resources for innovation
Firm doesnot have core competencies to deal with complex
technological developments
Need to keep up with competitors
Need to cope with acceleration of technological change
As a part of firms strategy let other firms take big risks and can
purchase technology developed by them
Lack of mutual trust between two parties may
hinder full and timely transfer.
There is risk of loss of control over technology and
the transferred recipient may use technology in an
arbitrary manner.
Appropriateness of technology ie., its sustainability
of core competencies and market needs is always
a point of discussion and investigation.