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.

Top management support and participation in the
transfer process
Providing supportive organisational culture.
Use of multifunctional teams in the transfer process.
Effective communication in the organisation.
Bringing R & D closer to production
Rotation of few persons between R & D and production.
Linking and participation of marketing elements in the
transfer process.
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
Associated costs usually high prices are required to be paid in
the form of royalties, technical and knowhow fees etc over medium
to long term period.
Appropriateness of technology ie., suitability to core competencies
and market needs is always a point of discussion and
investigation.
Heavy reliance on foreign technology may make the
transferee/recipient technologically dependent on external
technology providers/transferors even for small issues.
Lack of mutual trust between two parties may hinder full and timely
transfer.
There is risk of loss of control over technology and the
transferee/recipient may use technology in an arbitrary manner.
Transfer may render existing technology, and its related
products/services/processes, obsolete.
Transferee may turn a potential competitor in future.
Mismatch in core competencies of the transferor and transferee may
create difficulties in transfer.
Different organisation cultures may create difficulties in transfer.
Lack of effective communication between the parties may also create
difficulties in transfer.

Proper and well defined technology transfer agreement should be signed.
There should be proper assessment/evaluation of appropriateness of
technology.
There should be proper assessment/evaluation of compatibility of core
competencies of the parties.
It helps to build pre-agreement relationships so as to develop mutual trust and
understand the culture of opposite parties.
Seeking cross-cultural training may be helpful.
It helps to ensure effective communication.
Problems need to be anticipative in advance and adequate measures adopted
to facilitate transfer.
Lump-sum payment or periodical instruments.
Royalties as a percentage of sales over the next
few years.
Cross-licensing agreements.
Contracted supply of output.
Issue of equity shares in lieu of technology
transferred.
Technology already developed saves time and effort
Growth objectives or competitive goals, cannot be reached
through internal development
Lack of risk taking 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