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Technology Transfer between Europe and India

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Technology Transfer between Europe and India

  1. 1. Factors influencing technology transfer strategies between Europe and India AMJAD SHAIKH TECHNOLOGY TRANSFER CONSULTANT FRANCE © Amjad Shaikh, 2014. Presented at Euro India Technology Sourcing EITS 2014, Metz, France
  2. 2. Content: • Definitions • Modes and Transaction • TT Drivers and Factors • Industrial Examples • Technology Recipient • Implementation © Amjad Shaikh, 2014.
  3. 3. The Technology Transfer: Definition The UNCTAD Definition  Technology: “Systematic knowledge for the manufacture of a product, for the application of a process or for the rendering of a service (UNCTAD, 1985, chapter 1, para.1.2.).  Technology transfer: “Technology transfer” is the process by which commercial technology is disseminated. This takes the form of a technology transfer transaction, which may or may not be covered by a legally binding contract (Blakeney, 1989, p. 136), but which involves the communication, by the transferor, of the relevant knowledge to the recipient. © Amjad Shaikh, 2014.
  4. 4. o The assignment, sale and licensing of all forms of industrial property o The provision of know-how and technical expertise in the form of feasibility studies, plans, diagrams, models, instructions, guides, formulae, basic or detailed engineering designs, specifications and equipment for training, services. involving technical advisory and managerial personnel, and personnel training; Direct investment o The provision of technological knowledge necessary to acquire, install and use machinery, equipment, intermediate goods and/or raw materials which have been acquired by purchase, lease or other means; o The provision of technological contents of industrial and technical co- operation arrangements” (UNCTAD, 1996a, vol. I, p. 183).3 o The provision of technological knowledge necessary for the installation, operation and functioning of plant and equipment, and turnkey projects; Licensing Joint Venture Modes and Transaction © Amjad Shaikh, 2014.
  5. 5. The TT: Drivers and factors Global Trade Policies – e.g. TRIPS agreement Identification of partners – capability, trust, cross cultural issues Funding availability O&M – Spares, After sales service, development of local supply chains Demonstration of projects – stakeholder participation Local adaptation of technology National Government Policies – IPR, Foreign exchange TheTraditionalFactorsgoverningTTprocess The complexity of product and production technique to be transferred Transfer environment in donor and recipient countries Absorptive capabilities of the recipient firm Transfer capability and profit maximizing strategy KEY DRIVERS OF TRANSFER Product Environment Recipient Donor International Transfer: Transfer across national boundaries, as distinct from enterprise-to- enterprise transfer within national boundaries, is perceived and valued differently by transmitters of technology because of differences in legal systems, conflict of political interests, and the added uncertainties of changes in exchange rates © Amjad Shaikh, 2014.
  6. 6. Technology Transfer to India Practical Challenges and Opportunities  Finding a suitable partner  Finding demonstration possibilities (e.g. technology center, public demo sides,…)  To protect Product in the Indian Market (IPR issues)  Local component  Developing a Business case – understanding prices , needs and markets By the year 2020, Productivity in India will have a sustained overall growth of 8% and per Capita GDP will double. Indians will buy 5 times more cars Over 100 million Indians will enter work force App 150 million Indians will move to urban areas There will an annual growth of 66% two wheelers, 30% in commercial vehicles, 285% in air traffic to half a million passengers, 24% in mobile subscribers with 5 million subscribers to speak a few examples. New high speed network of trains with ~25,000 Km of track. Indian Investment in machines - currently $5 billion and Increasing by $10 billion, in next 5 years. © Amjad Shaikh, 2014. INDIA OPPORTUNITIES
  7. 7. Practical Examples Company A: Swedish company has provided innovative solution within online detection of microorganisms . Management Issues Technical Issues 1. Establishing a pilot project together with the partner and the end user having commercial activities in focus Software development, remote access through cloud configuration 2. Site surveys - Gathering background information of the site Prepare to adapt to new environment minimizing the cultural difference 3. Education of the product and hygienic aspects Technical feasibility – gaps in claim/actual result 3. Is it user friendly? will the villagers of India be able to use it? What is the life cycle for the device? © Amjad Shaikh, 2014.
  8. 8. Practical Examples Company B: A German company seeking to enter into Indian Market for its process distillation technology through developing local supply chain. Management Issues Technical Issues 1. Identifying suitable partner and suppliers Software development, remote access through cloud configuration 2. Site surveys - Gathering background information of the site Raw material availability 3. Training of suppliers on international codes, standards. Technical feasibility – gaps in claim/actual result © Amjad Shaikh, 2014.
  9. 9. Practical Examples Company C: A French company develop partnership in India for motor manufacturing. Management Issues Technical Issues 1. Challenges in focusing on sourcing partner Supplier for precision components not available 2. Intellectual property issue in sharing know how Prepare to adapt to new environment minimizing the cultural difference 3. Education of the product aspects Technical feasibility © Amjad Shaikh, 2014.
  10. 10. Key Points for Technology Recipient Technology adoption: Lack of information and assessment tools has resulted in poor selection of technology.  Technology adaptation: Adapt the imported technology to your needs to avoid negative effects on employment, cultural patterns and habits, and effects leading to increasing dependence on imported raw materials and spare parts. Intellectual property: The related IPR challenges are to identify the IPR elements in the technology, to understand the IPR options related to technology transfer and formulate appropriate terms. Technology up gradation: Technology recipient should look into the aspects related to future technological up-gradations, when signing technology transfer agreements. Skilling of manpower: - Appropriate clear provision for training of technical people of the industries from technology suppliers to handle and maintain the technology transferred. Sourcing of components and sub-assemblies: Develop own technological capability to absorb and adapt the imported technology rather than to look for short-term solutions. © Amjad Shaikh, 2014.
  11. 11. Implementation Description (N-1) Requirements Verification Viability TT (N) YES YES YES YES NO NO NO NO Our stage–gate process assist in delivering successful tech transfer projects by: Identifying the technology needed and making a business case to obtain corporate approval Searching for possible technology sources and assessing offers Negotiating with short-listed suppliers and finalizing the deal Preparing a TT implementation plan Implementing and assimilating Assessing the impact of the TT project The “Generic Technology Transfer Assessment Steps” © Amjad Shaikh, 2014.
  12. 12. Thank You Technology Transfer Consulting Rumilly France Contact: amjad.ashaikh@gmail.com 0033(0)695703517 © Amjad Shaikh, 2014.