![What is Technology
Transfer?
• The technology transfer process helps a manufacturing company more
effectively use its human, physical, and capital resources by providing
knowledge, information, or assistance, which leads to improvements in
its facility, equipment, manufacturing methods, management methods,
or marketing methods.
Technology transfer [and commercialization] is defined as the transfer of
results of basic and applied research to the design, development,
production, and commercialization of new and improved products,
services or processes.
That which is transferred is often not really technology but rather a
particular kind of knowledge that is a precursor of technology. The
transfer process emphasizes the value and protection of the intellectual
product of the researchers.
Gary Matkin, Technology Transfer and the University, 1991](https://image.slidesharecdn.com/lect3-technologytransferprocesses-220727155358-22782c58/85/Lect-3-Technology-Transfer-Processes-ppt-8-320.jpg)
Lect 3- Technology Transfer Processes.ppt
- 1. Technology Transfer Process Business Lawyers in Europe
- 2. Technology Transfer • Technology transfer (TT) is an area of interest not just to business, economists, and technologists but also to other disciplines such as anthropology and sociology (Zhao and Reisman, 1992). • From the perspective of business and technologists the main focus of TT is to improve the competitive advantage of firms through the enhancement of customer value (Ramanathan, 2001). It is envisaged that, through the improvement of competitive advantage, a firm and its partners collaborating in the TT will gain financial and other strategic benefits.
- 3. Technology - Background • Technology is key to economic growth and international competition • Research must be exploited to produce new products / devices • Technology transfer becomes vital, especially today when time-to-market is key to success • Scientific push is usually not an engine for technology transfer. Science often predates its application by decades • Without scientific curiosity, there would be no technology transfer
- 4. Some Working Definitions • Technology Transfer The transactions between changing technology and invention, innovation, production, and diffusion • Innovation – The exploitation of new ideas • "An innovation is something original, new, and important - in whatever field - that breaks in to (or obtains a foothold in) a market or society •In this perspective technology (knowledge) transfer is key for innovation processes to take place! Technology Transfer and Innovation are two sides of one medal •How does Technology Transfer and Innovation (TTI) function??
- 5. Innovation and Technology Transfer Innovation can be defined as “The result of individual and institutional learning processes, the knowledge created by this and its economic application”(ZENIT) • “Innovation is the ability to take new ideas and translate them into commercial outcomes by new processes, products or services….) We only speak about „innovation“ when new knowledge is actually being applied in new products, services, organisational procedures or management procedures!! • Definition of Technology Transfer – “the diffusion and adoption of new technical equipment, practices and know-how between actors in one geographical area to another” • Traditional technology protectionism • Why share? • Technology push vs. market pull
- 6. Definition of Technology Transfer • The term technology transfer can be defined as the process of movement of technology from one entity to another (Souder et al. 1990; Ramanathan 1994). • The transfer may be said to be successful if the receiving entity, the transferee, can effectively utilise the technology transferred and eventually assimilate it (Ramanathan, 1994). • The movement may involve physical assets, know-how, and technical knowledge (Bozeman, 2000). • Technology transfer in some situations may be confined to relocating and exchanging of personnel (Osman-Gani 1999) or the movement of a specific set of capabilities (Lundquist 2003).
- 7. Technology Transfer • Technology transfer is the process of sharing of: – skills, knowledge, technologies, methods of manufacturing, samples of manufacturing and facilities • among government s and other institutions • to ensure that scientific and technological developments are accessible to a wider range of users • who can then further develop and exploit the technology into – new products, processes, applications, materials or services. • It is closely related to (and may arguably be considered a subset of) knowledge transfer
- 8. What is Technology Transfer? • The technology transfer process helps a manufacturing company more effectively use its human, physical, and capital resources by providing knowledge, information, or assistance, which leads to improvements in its facility, equipment, manufacturing methods, management methods, or marketing methods. Technology transfer [and commercialization] is defined as the transfer of results of basic and applied research to the design, development, production, and commercialization of new and improved products, services or processes. That which is transferred is often not really technology but rather a particular kind of knowledge that is a precursor of technology. The transfer process emphasizes the value and protection of the intellectual product of the researchers. Gary Matkin, Technology Transfer and the University, 1991
- 9. Technology Transfer – Process and Principles • It has stages, phases, and typical behaviors. • It operates and can be understood at different levels (e.g., technology policy, individual scientists). • It involves different “stakeholder” perspectives (e.g., developers and users). • It is therefore a “communication process.” • Principles • “Technology”…Systematic knowledge (conceptual, empirical, “Scientific”) embodied into tools, to perform human tasks. • Mixture of physical artifact, social content and context, and procedures. • Knowledge, BY ITSELF, is not technology.
- 11. Models of Technology Transfer • Vertical – Transfer of equipment – No risk to provider – Quick results – One-way – Dependency risk – Simple linear model Technology Provider Technology Recipient Equipment Buyer $$
- 12. Models of Technology Transfer • Horizontal – Knowledge transfer – Longer complex process – Investment required on both sides – Loss of provider control – Partnership/JV based – Long term sustainability Technology Provider A Technology Provider B Equipment Skills Knowledge Buyer $$ $$
- 13. Mechanisms for Technology Transfer • Public-Private Partnerships – Government co-financed developments • Private-Private Partnerships – Joint Ventures with business fit • University-Private Partnerships – Targeted R&D collaboration • Technology Intermediaries
- 14. University Ways of Transferring Technology • Consulting • Graduating students (“moving heads”) • Faculty moving on (“moving heads”) • Collaborative research • Patenting and licensing • Service and outreach (“extension”)
- 15. Simple Example • Incredible that people a million years ago invented the wheel that would be useful for so long. They saw the need for such a device that would make certain tasks easier – invention. • Someone needed to device a way to utilize the wheel – innovation • Turn idea into reality and implement other ideas to use the wheel – design • Further developments need promotion and device/idea needs to be disseminated – diffusion • A fundamental Question on TT • Why do inventions, in some cases, take so long to reach the market place? • What factors govern the time lag between invention and application
- 16. Where to enter the catalytic process of technology transfer? • Universities and Research Institutes: – Mainly on the level of basic and applied research, and early stage development. • Entrepreneurial companies: – Any stage from research and development to the market.
- 17. Channels of Technology flow • Public dissemination • Reverse engineering • Purposeful acquisition – Licensing – Franchise – Joint venture – Turkey project – Foreign direct investment – Technological consortium & joint R&D
- 18. Technology Transfer Technology transfer has also been used to refer to movements of technology from the laboratory to industry, developed to developing countries, or from one application to another domain (Philips 2002). In a very restrictive sense, where technology is considered as information, technology transfer is sometimes defined as the application of information into use (Gibson & Rogers 1994).
- 20. Patenting Licensing Disclosure Commercialization Products/Processes (Royalties) The Technology Transfer Process Agreement Administration
- 21. Varied Roles Distribution Research Development Production IDEA MARKET Universities Research Institutes Start-up Firms R & D Firms Larger Companies Manufacturing
- 22. Goals and Objectives: Principal Investigator Publications Support of students Long-term relationship Multiple sponsor relationship/consortium Timeframe Overall research program Pending research projects
- 23. Goals and Objectives: Company Partner Past relationship What do they expect? What will they contribute to research project? Timeframe Company position and likely strategies
- 24. Stages, Phases, and Behaviors • Linearity as convenient fiction (technology push). • The intellectual elegance of your science or technology won’t necessarily attract market attention. • Lots of feedback and recursive loops (market pull). Successful technology transfer demands lots of iterations. • Marker events or key milestones: Award of a patent, proof of principle, signing a license deal.
- 25. Assessing Technology • Assessing future technological innovations is usually done in a technology review or audit • 3 Parts 1.What is the competitors Technology (what do they got?) 2.Review companies own Technology (“what do we got?”)
- 26. Market Potential • Identifying Potential Customers • Recording Data • Classifying External Influences • Analyzing Results This can help dictate R&D resources Benchmarking • Benchmarking results help understand the amount of changes required to set strategic targets and guide planning efforts. There are four types of benchmarking.
- 27. Searching for Technology • Very few small to medium size companies will have the necessary expertise or R&D resources and infrastructure to provide new technology. • Companies that want to develop something must be able to find other organizations that can help them • Information is key to finding new technologies • Companies must know where they can go to find information on products, research activities, finance, IP, etc. • How can a small company leverage off of a university? Using Higher Education Research for Development Universities can often help small and big companies with R&D. The University often offers much cheaper rates than a private research company. • Access to new technology (A lot of pie in the sky stuff) • Keep abreast of new developments • Access consultancy skills • Professors are possible technical board members • Develop joint new technology, benefits both.
- 28. Evaluating the Technology Large companies solicit proposal on new and innovative ideas. There will be well defined criteria for the assessment of new proposals • Is proposal consistent with company strategy • Any synergy with existing efforts on projects • Have the risks, advantages, potential payoffs, and implications been considered in detail Proposals may be evaluated by internal or external reviewers For small companies, startups, they are contained in business plans.
- 29. Linking Organizations to Educational Establishments Forming Links 1. Graduate Employment – companies hire graduates and create a natural link back to their alma mater 2. Sabbaticals – Companies hire university professors to work on-site for a year or semester to bolster in-house expertise (pretty cheap) 3. Industry/University Research Units – Organized research units where focused groups at the university partner with companies (e.g. in the US, NSF, MRSEC). Companies gain access to professors, students, and earn results 4. University/Industry Liaison Units – Universities are creating internal organizations that are in charge of protecting and developing valuable new technologies to be transferred to industry. At Brown, the campus based technology transfer unit is BURF, Brown University Research Foundation. University Industry
- 30. University – Industry Partnership Product ideas, real world perspective, focused problems, prototyping facilities, market experience New results, interesting devices, research with seemingly no applications, professors, and students
- 31. Paths of Technology Transfer Government Funding University research Invention Campus-based technology transfer group Fundin g University research Invention Campus- based technology transfer group optio n Option to exclusive right Company w Company x Company z No exclusiv e right Exclusiv e right to use it Company x Exclusive right to use Company w Company x Company z Company y no
- 32. Company to Company Transfer • Private companies with R&D facilities ‘produce’ a lot of innovative ideas that they may or may not patent or develop. These ideas may not be in their business plan, not within their core competencies, or returns are too small. These ideas may be suitable for another company. • A small company company acquired by a big company or selling off its technology to a big company Collaborations Between Companies - What is the goal of a technology collaboration? - To improve the Innovation Process • Inter-Company transfers. Your idea is now being transferred to products group or manufacturing • Agreements for organizations to work together • Alliances • Networks • Cooperatives • Collaboration Technical partnerships- These arrangements could be with suppliers, customers, and even competitors. Many times manufacturers form alliances to work together but retain their individual brand names. • Another form of technology transfer is through technology / engineering collaborations to increase their expertise by sharing knowledge, skill, and personnel.
- 33. Why Collaborate? • If you are faced with a problem that you cannot solve yourself – technical, financial, or commercial problem: • To share risks • To share costs • To gain technological know how • To speed up product development • To develop industry standards • To gain additional markets
- 34. Company to Company Transfer Company x research Innovation idea Company SB Small Business Company x products group Innovation idea Spin-off of Company X Company Y buys technology Company Z buys company SB on right to invention
- 35. Barriers to Transfer What hinders technology transfer and what cause joint projects to fail? • Lack of awareness – what technologies are available to them • Lack of knowledge – If staff of company is lacking technical knowledge, it may not be able to capitalize on the technology being offered in the transfer • Lack of funds – company may not be able to afford the development costs of the technology being transferred • Lack of common interests – Individuals putting the interests of their own company ahead of the alliance • Conflict of interest – Even in collaborations on the technical level or strong, it has been found that collaborations between competing companies doesn’t work. • Lack of Trust – If little trust exists between companies, it is
- 36. Barriers – With Regard to Collaboration • Over-committed – The company may be over-committed on current projects and simply lacks the time needed for success. • Technical Problems – which are generally overcome, but which add time and money and frustration • Resource Limitation – Poor budget control • Change in Project’s Structure – Loss of key members or loss of partner • Organizational Problems – due to a partner losing or changing interest in the technological side.
- 37. Levels and Units of Analysis • Economy, industry, and public policies (e.g., cost of capital) • Markets and users • Organizational structures, incentives, and procedures (e.g., university policy on software copyrighting) • Work group culture and dynamics (e.g., faculty tenure criteria) • Individuals involved, their characteristics and roles (e.g., having an industrial-experienced graduate student) • The technology itself LESSON: What you do in terms of bench-level science is only part of the story
- 38. Perspectives • Basic researchers, knowledge creators • Creators, developers, sellers of knowledge- embedded tools • Users (individual and organizational) of knowledge and tools • All of us are either, or all – simultaneously
- 39. The “Chain-Link” Model of Innovation Research - Knowledge Creation Transfer Processes (varied) Market Need Competitive Analysis Invent Prove Concept Prototyping Detailed design Product testing Redesign Production Market Distribute Customer support The Product Development Cycle
- 40. Product and Process Technology • Product Technology • Many end-users (e.g., consumers) • Non-obvious relationship to creating/making other technologies • Often simpler • Process Technology • Intermediate users • Instrumental to creating/making other technologies • More complex • Technologies can be both product or process, and on alternate days, depending upon context (e.g., drill press is a product to drill press maker; part of a process to a tool-and-die shop) LESSON: Different paths to commercialization, depending on process/product distinctions.