Three Waves of Economic Three Waves of Economic ChangeChange

1. Agricultural Wave1. Agricultural Wave

2. Industrial Wave2. Industrial Wave

3. Information/Technology Wave3. Information/Technology Wave

The transition from one wave to The transition from one wave to another takes a long period of another takes a long period of

dislocation depending on cultural dislocation depending on cultural acceptance of changeacceptance of change

The Third Wave EconomyThe Third Wave Economy

1. Driven (enabled) by technology1. Driven (enabled) by technology2. Impacted by global issues2. Impacted by global issues

3. Utilizes knowledge as a resource/asset3. Utilizes knowledge as a resource/asset4. Requires “instant” fulfillment of 4. Requires “instant” fulfillment of

demanddemand5. Based on individuality and uniqueness5. Based on individuality and uniqueness6. Results in a need for customization and 6. Results in a need for customization and

flexibilityflexibility

Managing in the Third Managing in the Third WaveWave Strategy: Pursue Renewal, Strategy: Pursue Renewal,

Not RetrenchmentNot Retrenchment

Customer Value: Match Customer Value: Match Competencies to CustomersCompetencies to Customers

Knowledge Management: Leverage Knowledge Management: Leverage Knowledge for Competitive Knowledge for Competitive AdvantageAdvantage

Business Organization: Organize Business Organization: Organize Around Networks and ProcessesAround Networks and Processes

Managing in the Third Managing in the Third Wave (continued)Wave (continued) Market Focus: Find and Keep Strategic, Market Focus: Find and Keep Strategic,

Profitable, and Loyal CustomersProfitable, and Loyal Customers

Measurement and Control: Strike a New Measurement and Control: Strike a New Balance Between Control and EmpowermentBalance Between Control and Empowerment

Shareholder Value: Measure the New Source Shareholder Value: Measure the New Source of Wealth Creation - Intellectual Assetsof Wealth Creation - Intellectual Assets

Productivity: Encourage and Reward Value-Productivity: Encourage and Reward Value-Creation WorkCreation Work

Transformation: Collaborate to competeTransformation: Collaborate to compete

Definition of TechnologyDefinition of Technology

Technology is the confluence of Technology is the confluence of multiple scientific disciplines multiple scientific disciplines tested and proven and put to tested and proven and put to use for a nation’s prosperity.use for a nation’s prosperity.

Abdul KalamAbdul Kalam

President of IndiaPresident of India

Envisioning an Empowered Envisioning an Empowered NationNation

President Abdul Kalam envisions to President Abdul Kalam envisions to empower India through technology empower India through technology and a developed India by 2020.and a developed India by 2020.

However, without management of However, without management of technology and its appropriate technology and its appropriate sharing and alliance, it is a difficult, if sharing and alliance, it is a difficult, if not impossible, to realize that vision.not impossible, to realize that vision.

Dominant TechnologiesDominant Technologies1. Information Technology1. Information Technology

2. Biotechnology2. Biotechnology3. Nanotechnology3. Nanotechnology

4. Product Technology4. Product Technology

While there are other technologies, While there are other technologies, the above are the most powerful the above are the most powerful and emerging technologies from and emerging technologies from

the transfer viewpoint.the transfer viewpoint.

Technology Transfer Technology Transfer ProcessProcess A firm with superior technology A firm with superior technology

enters into agreement with a enters into agreement with a firm without such technology to firm without such technology to provide such technology.provide such technology.

It is considered technology It is considered technology transfer particularly if it is done transfer particularly if it is done from a developed nation to a from a developed nation to a developing nation.developing nation.

Technology Transfer Technology Transfer ProcessProcess For the technology transfer, For the technology transfer,

receiving firm agrees to the receiving firm agrees to the terms and conditions terms and conditions proposed by the providing proposed by the providing firm which also includes firm which also includes payment of royalties for the payment of royalties for the use of such technologies.use of such technologies.

Benefits of Technology Benefits of Technology TransferTransfer The receiving firm can now take The receiving firm can now take

advantage of the technology to advantage of the technology to gain competitive advantage in gain competitive advantage in the global marketsthe global markets

The providing firm can offset the The providing firm can offset the research and development costs research and development costs and hence can spend more on and hence can spend more on future technological future technological developments.developments.

Problems with Problems with Technology TransferTechnology Transfer Many studies have shown that Many studies have shown that

technology transfer agreements:technology transfer agreements:– De-motivate for the receiving firm to De-motivate for the receiving firm to

develop their own technological develop their own technological capabilitiescapabilities

– Motivate to develop dependencies on Motivate to develop dependencies on the providing firm.the providing firm.

– Create a sprit of non-innovation which Create a sprit of non-innovation which results in lack of competitiveness over results in lack of competitiveness over the long-term.the long-term.

– Reduce the flexibility that the firm can Reduce the flexibility that the firm can offer in the market place.offer in the market place.

Problems with Problems with Technology TransferTechnology Transfer

Uses the first or the second wave Uses the first or the second wave model in its design and operation.model in its design and operation.

Is based on the principle of Is based on the principle of competition and getting the most out competition and getting the most out of the other organization rather than of the other organization rather than collaboration and partnership.collaboration and partnership.

Does not provide for dynamism and Does not provide for dynamism and change.change.

Possible SolutionsPossible Solutions

Replace the term “Technology Transfer” Replace the term “Technology Transfer” with “Technology Sharing”.with “Technology Sharing”.

Create strategic alliances and joint Create strategic alliances and joint ventures rather than write technology ventures rather than write technology transfer agreements.transfer agreements.

Ensure that the concerned documents Ensure that the concerned documents include provisions for technology include provisions for technology enhancements, people development, and enhancements, people development, and information/technology sharinginformation/technology sharing

Cross-employ people involved in Cross-employ people involved in technology developments in the receiving technology developments in the receiving and providing firms.and providing firms.

Suggested ContextSuggested Context

Technology sharing assumes that:Technology sharing assumes that:– Each partner has something important Each partner has something important

to share and contribute to each other.to share and contribute to each other.– Each partner is treated as an equal and Each partner is treated as an equal and

must get rewards equally.must get rewards equally.– Each partner is treated as a dynamic Each partner is treated as a dynamic

entity where future requirements may entity where future requirements may change and hence the technology change and hence the technology sharing needs may be different.sharing needs may be different.

Thus, it is alliance of the equals for Thus, it is alliance of the equals for the benefit of the global society.the benefit of the global society.

Management of Technology Management of Technology Sharing and AlliancesSharing and Alliances

In order to create maximum In order to create maximum value from technology sharing value from technology sharing and alliances, the process must and alliances, the process must be managedbe managed

Left to itself, it could produce Left to itself, it could produce disastrous results and may lead disastrous results and may lead to a lowering of societal values to a lowering of societal values and norms.and norms.

What does it take to Manage What does it take to Manage Technology sharing process?Technology sharing process?At the macro-level:At the macro-level: Create a technology vision for the global societyCreate a technology vision for the global society Prepare a global technology sharing infrastructurePrepare a global technology sharing infrastructure Develop educational and training programs in the Develop educational and training programs in the

management of technology sharing and alliancesmanagement of technology sharing and alliances Create and maintain knowledge depositories Create and maintain knowledge depositories

regarding technology sharing and related regarding technology sharing and related disciplinesdisciplines

Invest in making technology available to general Invest in making technology available to general publicpublic

Propagate the enabling feature of technology Propagate the enabling feature of technology sharing and alliancessharing and alliances

Develop policies and procedures to ensure equality Develop policies and procedures to ensure equality and dynamism of technology sharing and alliances and dynamism of technology sharing and alliances processes.processes.

What does it take to Manage What does it take to Manage Technology sharing?Technology sharing?

At the micro-level:At the micro-level: Create a plan to manage technology sharing within Create a plan to manage technology sharing within

a receiving and a providing firma receiving and a providing firm Create a mutually agreed upon R&D plan for Create a mutually agreed upon R&D plan for

technology development technology development Develop enabling viewpoint and infrastructure for Develop enabling viewpoint and infrastructure for

technology sharing and alliancestechnology sharing and alliances Empower people to effectively use, develop and Empower people to effectively use, develop and

alter technology applications covered by the alter technology applications covered by the technology sharing agreementstechnology sharing agreements

Rewrite technology agreements so as to reward Rewrite technology agreements so as to reward innovation and knowledge creation rather than innovation and knowledge creation rather than inhibit them.inhibit them.

Share, retain and manage knowledge and Share, retain and manage knowledge and intellectual capital between the receiving and intellectual capital between the receiving and providing firms.providing firms.

Need for New Educational Need for New Educational ProgramsPrograms New educational programs in New educational programs in

technology sharing, alliances and/or technology sharing, alliances and/or knowledge management need to be knowledge management need to be created and supportedcreated and supported

Interdisciplinary research and learning Interdisciplinary research and learning requires the programs to involve requires the programs to involve people from different backgroundspeople from different backgrounds

Continuous revision and updating of Continuous revision and updating of such educational programs are such educational programs are essential.essential.

Creation of flexible educational Creation of flexible educational programsprograms

Concluding RemarksConcluding Remarks Technology transfers may have been oversold and may have Technology transfers may have been oversold and may have

over-lived their usefulness.over-lived their usefulness. Technology transfer obsession can have negative impact in Technology transfer obsession can have negative impact in

enterprises and societiesenterprises and societies More research is needed to understand the social impact of More research is needed to understand the social impact of

technology sharing and alliancestechnology sharing and alliances Perhaps we need to go back and study the rise and fall of Perhaps we need to go back and study the rise and fall of

technological civilizationstechnological civilizations Management of technology sharing and alliances is an imperative Management of technology sharing and alliances is an imperative

for the transformation of a developing economy to a developed for the transformation of a developing economy to a developed economy.economy.

Educational programs need to be created and supported in Educational programs need to be created and supported in technology sharing, alliances and knowledge management technology sharing, alliances and knowledge management

National policies related to technology sharing infrastructure and National policies related to technology sharing infrastructure and support need to be developed, implemented and used.support need to be developed, implemented and used.

Research and development is needed to develop appropriate Research and development is needed to develop appropriate strategic alliances and joint ventures that are dynamic and future strategic alliances and joint ventures that are dynamic and future oriented rather than static.oriented rather than static.

Thus, we need to know lot more about technology transfer, sharing Thus, we need to know lot more about technology transfer, sharing and alliances development and management and its processes to and alliances development and management and its processes to reap its full benefits.reap its full benefits.

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