SciEtech

Innovation and growth have always been synonymous with each other, ultimately leading to development. Business ecosystems are largely dependent on these innovations and diffusion of technology plays a crucial role in shaping the future of these organizations. The term ‘technology transfer’ indicates the movement of knowledge, skills, know-how, and other valuable assets of the organization which is driven by profit.

Economists have long recognized that the transfer of technology is at the heart of the process of economic growth and that the progress of both developed countries and developing countries depends on the extent and efficiency of such transfers. In recent years, economists have also come to realize (or rediscover) the important effects of international technology transfer on the size and patterns of world trade.

Technology transfer can be described as the process of conveying results stemming from scientific and technological research to the market place and to wider society, along with associated skills and procedures, and is as such an intrinsic part of the technological process. It is a complex process that involves many non-scientific and non-technological factors, and many different Stakeholders. Good or high-quality research results are not enough for successful technology transfer; general awareness and willingness both at the level of organizations and individuals; as well as skills and capacity related to specific aspects, such as access to risk finance and intellectual property (IP) management, are also necessary components.

Such transfer takes place with the motive to share skills, knowledge, technologies, methods of manufacturing, and other related profit motives. The transfer is further done with an intention to provide improved accessibility to a wide range of users who can then further develop and exploit the technology to develop new products, processes, applications, materials, or services.

Technology transfer covers the complex value chain linking research to its eventual societal deployment. This begins with the discovery of novel technologies at research institutions, followed by the disclosure, evaluation and protection of these technologies. The next step includes marketing, potential licensing agreements and the development of products based on the technical inventions. The financial returns of these products can then, for instance, be used for further research.

Activities in the following areas are aimed to deepen and share competencies, expertise and knowledge on technology transfer;

• Capacity building
• Financing
• Innovation ecosystems

TYPES OF TECHNOLOGY TRANSFER

• Vertical Technology Transfer – This chain of transfer includes basic research to applied research, applied research to development, and from development to production. It is also known as internal technology transfer. This type of transfer is mostly carried out between research associations, universities, and governments, among others.

• Horizontal Technology Transfer – When the technology that has already been put in place or use within one organization is further transferred and used in another place, the transfer is known as horizontal technology transfer. It is also known as external technology transfer. This type of transfer takes place between private companies, small and large business organizations, among others

METHODS OF TECHNOLOGY TRANSFER

1. Licensing – An agreement between the owner of the technology (Licensor) and the receiver (Licensee) which gives the right to use the technology developed or owned by the transferring individual or company for a specified time period is known as licensing. The two broad categories of licensing include the one which grants exclusive rights to use the technology and another which grants non-exclusive rights wherein the owner reserves the right to further transfer the technology to other company apart from the receiver. It may also include the right to sub-license, permitting the licensee to grant someone else the right to use the technology.

2. Joint Venture Agreement – The company executes a joint venture agreement with respect to technology transfer for a particular business with a vision to incorporate long-term cooperation between the parties, the motivation of all participants in the successful transfer, and to incur lower costs as compared to working independently.

3. Franchising – It is one of the most preferred methods of transferring technology. The companies generally transfer technical know-how or skill involved under this type of agreement.

4. Original Equipment Manufacturer – It is a kind of sub-contracting agreement wherein a foreign company transfers a relevant portion of its technologies and a local company manufactures according to the specifications in the agreement. Such agreement enables local companies and firms to absorb technologies and restructure their production mechanism.

5. Buy-Back Contracts – It is a form of agreement between Stakeholders from developing countries and large foreign companies, wherein a foreign company supplies industrial equipment in exchange for profits derived from the sale of raw materials or goods produced. This kind of technology transfer is often used in the construction of new plants and other related businesses. It is interesting to note that a considerable amount of knowledge and technology exists today that enables the development of approaches and can effectively plan and implement business processes. What needs to see the light of day is a well-funded and potent mechanism for executing technology transfer between the stakeholders in order to ensure uninterrupted economic advancement.

REFERENCES:

European Commission - https://ec.europa.eu/knowledge4policy/technology-transfer_en  (30/01/2022 1:06pm)

Shreya Pandey – Origiin IP Solutions – https://origiin.com/2020/09/13/technology-transfer-meaning-types-and-steps/ (30/01/2022 2:46pm)