The Role of Technology Transfer in Innovation1. Economic Perspective of technology transfer

The attraction of technology transfer was that companies and industry in general could benefit from technology that had already been paid for

Industry and private

enterprise

can be transferred to

Existing R&D projects and developed technology which has already been paid for

In the 1980s all over the world, the potential opportunitiesthat technology transfer could bring were recognized. This was based on a simple economic theory. Technology which has already been produced, and hence paid for by someone else, could be used and exploited by other companies to generate revenue and thereby economic growth for economy.It was this theory in mind that governments began encouraging companies to be involved in technology transfer. They set up a whole variety of programs trying to utilize technology that had been developed for the defenceor space industries. They encouraged companies to worktogether to see if they could share for the common good.

Introduction to Technology Transfer:Technology Transfer is the application of technology to a new use or user. It is the process by which technology developed for one purpose is employed either in a different application or by new user. The activity practically involves the increased utilization of the existing

science/technology base in the new areas of application as opposed to its expansion by means of further research and development. Innovationis the process of promoting technical innovation through the transfer ofideas, knowledge, devices and artefacts from leading edge companies, R&D organizations and research to more general and effective applicationin industry and commerce.

Information transfer and technology transfer The Intangibility of knowledge

Data Intangibility

Information

Projects and activities of the organization

Knowledge Knowhow

Action

Relevance to the firm

Information is central to the operation of firms and that it is the stimulus for knowledge, skills and expertise. The above figure distinguishes information from knowledge and know-how according to its context. It is argued that it isthe industrial context which transforms knowledge into action, in the form of projects and activities. It is only wheninformation is used by individuals or organizations that it becomes knowledge, albeit tacit knowledge.

Models of technology transferA wide variety of models of technology transfer have been used over the years, The following are some of these models used for application.

Licensing Science park model Intermediary agency model Directory model Teaching Company Scheme model Ferret model

Hiring skilled employees Technology transfer units Research clubs

Note:Most models of technology transfer emphasize access to technology rather thantrying to understand the receptivity issues of the receiving organization.

Internal organizational factors and inward technology transferIn the study of the adoption of innovations by industrialcompanies, four different types of companies have been identified. Innovators: the first firm to adopt a new idea Initiators: the firms who adopted the idea soon after the innovators Fabians: the firms who adopted the idea only after its utility was widely acknowledge in the industry Drones: the last firms to adopt new ideas. In a comprehensive review of the technology transfer it is suggested that some of the following factors foster technology transfer:

High quality of incoming communication A readiness to look outside the firm A willingness to share knowledge A willingness to take on new knowledge, to license and to enter joint ventures A deliberate survey of potential ideas An awareness of costs and profits in R&D departments Good-quality intermediate management A high rate of expansion

Sources of information from scanning and networkingGiven the importance of an awareness of external information and the role of technological scanning andnetworking, awareness is seen as the necessary first stage inthe inward transfer process.In order for an organization to search and scan effectively for technology that will match its organizational capabilities, it needs to have a thorough understanding of its internal organizational strengths.

Within the public domain Held within organization

Media Published information organization-specificGeneral information industry-specific information information

Newspapers Scientific journals Internal company Television Business journals reports, Sales rep visit Internet Books reports, Research

Radio Databases scientists’ notes, Patents Minutes of meetingsTrade catalogues Network with :

Customers Competitors

Partners, Vendors Consultants, Academia

Predominately accessed via Personal contactsinanimate scanning

awareness

Managing the inward transfer of technologyThe inward technology process

External Process of awareness and business operating association of externally environment developed technology

The extent of these External science Process of assimilation activities determines technology and of external know-how the level of receptivity business linkages with internal prior of an organization to knowledge externally developed

technology

Application of the technology into core

routines of the business

This model explains how external processes affect an organization’sability to engage in inward technology transfer and contribute to the development of a receptive environment

Technology transfer and organizational learningIndividual

Internal knowledge accumulation process and group that creates genuine business opportunities learning

processes

Acceptance Application Adoption

Behavioral Assimilation Development Organizational

of core routines learningprocess

Expansion of the learning capability of the organization

Individual and organizational learning: integrated model

The way in which the learning cycles link together isillustrated in the above figure. In the manner of double-loop learning the individual and organizational cycles are inter-related and inter-dependent. The learning process forms a loop, transferring knowledge from individual into the group. The process of assimilation and adoption of thisnew knowledge within the inner cycle moves the knowledgeinto the wider environment and thus into the loop of organizational learning. The role of assimilation has a slightly different emphasis within the individual loops. Assimilation in the individual and group learning cycle refers to assimilation of knowledge from an external source,which may then be applied within the company. Assimilation in the wider cycle relates to assimilation oftechnology into the core routines of the organization which,is evidenced by a behavioral change within the organization.It is only when assimilation in the wider cycle has occurredthat learning has truly taken place.