Business Environment Technology Transfer

1. TECHNOLOGY TRANSFER

2. Technology Transfer
• Technology transfer is the process by which a developer of
technology makes its technology available to a commercial
partner that will exploit the technology.
• Technology transfer (TT) is the process of sharing of skills,
knowledge, technologies, methods of manufacturing, samples of
manufacturing and facilities among governments and other
institutions

3. • Most of the Indian Companies buy the updated technology from
advanced countries as Japan, UK, Germany.
• In India we can see that Many Japanese automobile Companies are
running their business.
• Presently Tata Telecom, India has establish a joint venture with
DOCOMO, Japan for its technology & services.

4. • Presently, transfer of technology is a very important factor which
fosters international business.
• MNCs bring new products, new process & technology to host
countries, which may be old in home countries, but relatively new
in the host countries. e.g. Cell-phone in India
• Technology Transfer takes place mostly from developed countries
into developing countries.

5. Technology Transfer takes place mostly from developed countries
into developing countries. International Business spreads
technology by:
establishing the subsidiaries in developing countries
establishing joint ventures with the host country’s companies.
e.g.- Hero-Honda, Maruti Suzuki

6. • acquiring the host country’s company or merging with the host
country's firms. e.g.
• transferring technology through technological alliances. 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
• Need to keep up with competitors
• 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. Provision of proprietary product know – how.
2. Transfer of product designs and technical
specifications.
3. Technical consultants with suppliers to help them
master new technologies.
4. Feedback on product performance to help
suppliers improve performance.
5. Collaboration in R&D

16. PROCESS TECHNOLOGY:
1.Provision of machinery and equipment to suppliers
2. Technical support on production planning, quality
management , inspection and testing
3. Visits to supplier, facilitates to advise on layout,
operations and quality
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.