technology management 4: technology transfer cp beukman engineering management programme university...

TECHNOLOGY TECHNOLOGY MANAGEMENT 4: MANAGEMENT 4: TECHNOLOGY TRANSFERTECHNOLOGY TRANSFER

CP BeukmanCP Beukman

Engineering Management ProgrammeEngineering Management Programme

University of CanterburyUniversity of Canterbury

Issue 1.0 Feb 1999Issue 1.0 Feb 1999

Technology definedTechnology defined

The complex of knowledge and skills The complex of knowledge and skills that people may employ to create, that people may employ to create, use, and maintain items of utilityuse, and maintain items of utility

Note:Note:• createcreate• useuse• maintainmaintain

ScopeScope

It is necessary to address the It is necessary to address the aspect of how technology is aspect of how technology is transferred from a donor entity to transferred from a donor entity to a receiving entitya receiving entity

CORE COMPETENCE

&ABILITIES

CREATES

PRODUCTS AND

SERVICES

WHICH THE MARKET BUYS AND PAYS FOR

SELECTIVEFLOW

TECHNOLOGY:SKILL, KNOWLEDGE

(KNOW-HOW)

SELECTIVE FLOW INNOVATIONTRANSFER

?

Definition of Technology Definition of Technology TransferTransfer

The process by which technology, in the The process by which technology, in the possession of the “donor”, is possession of the “donor”, is transferred to the “recipient”.transferred to the “recipient”.

Technology transfer is only completed Technology transfer is only completed when the recipient can when the recipient can prove prove compliance with predetermined compliance with predetermined achievement normsachievement norms for the operation of for the operation of the particular technologythe particular technology

Sources of Technology Sources of Technology AcquisitionAcquisition

InternalInternal

External - Research ProvidersExternal - Research Providers

External - Other FirmsExternal - Other Firms

Sources of Technology Sources of Technology Acquisition cont...Acquisition cont...

InternalInternal

• In-house researchIn-house research• In-house developmentIn-house development• In-house design and engineeringIn-house design and engineering


External - Research ProvidersExternal - Research Providers

• CRIsCRIs• UniversitiesUniversities• Research AssociationsResearch Associations• Private (or semi-private) reasearch Private (or semi-private) reasearch

companiescompanies


External - Other FirmsExternal - Other Firms• Technology agreements with parent or Technology agreements with parent or

affiliated firms (license joint ventures)affiliated firms (license joint ventures)• Technology agreements with independent Technology agreements with independent

firmsfirms• Acquisition of companiesAcquisition of companies• Purchase technology from idependent firms Purchase technology from idependent firms

(licenses, patents, know-how)(licenses, patents, know-how)• CustomersCustomers• SuppliersSuppliers

Nature of Technology Nature of Technology Transfer 1Transfer 1

An analogy is the transplanting of a An analogy is the transplanting of a living organliving organ

• rejectionrejection• oror• invigorated lifeinvigorated life

The process needs care and supportThe process needs care and support


Requires a well-established Requires a well-established relationship between the donor relationship between the donor and recipient organisations over and recipient organisations over the long termthe long term


TT is a processTT is a process

TT may be disembodied - just pure TT may be disembodied - just pure information transferinformation transfer

TT may be embodied - in a producy, TT may be embodied - in a producy, machine, process, or personmachine, process, or person


TT is a factor of the level in the TT is a factor of the level in the systems hierarchysystems hierarchy

What level of skills and knowledge, What level of skills and knowledge, in terms of breadth, are in terms of breadth, are transferred?transferred?

SYSTEM

SUB-SYSTEM

ASSEMBLY/GROUP

COMPONENT

SYSTEMS HIERARCHY

HIERARCHY:Relative relationships between systems and their components in terms of supra- and subordination.

Abstraction – analysing verticallyDecomposition – analysing on a level


TT is a factor of the phase in the TT is a factor of the phase in the systems life-cyclesystems life-cycle

What level of skills and knowledge, What level of skills and knowledge, in terms of baseline content, are in terms of baseline content, are transferred?transferred?

CONCEPT DEFINITION DEVELOP-MENT

INDUSTR.&

PRODUCE

USE&

MAINTAIN

URS FBL ABL PBL MBL

DEVELOP MAINTENANCE & SUPPORT SYSTEM

SYSTEM SPECIFICATIONS

DEVELOPMENT SPECIFICATIONS

PROCESS SPECIFICATIONS

USER SPECIFICATIONS

SUPPORT/MAINTENANCE SPECIFICATIONS

DRAWINGS

LISTS

STANDARDS & STD SPECIFICATIONS

DEVELOP THE PRODUCTION SYSTEM

PRODUCT SPECIFICATIONS


Examine TT in terms of barriers and Examine TT in terms of barriers and bonds that existbonds that exist

Barriers and bonds may exist at the Barriers and bonds may exist at the company level, or these may even exist company level, or these may even exist at national levelat national level

Overcome barriers, take advantage of Overcome barriers, take advantage of bondsbonds

BarriersBarriers

RecipientRecipient• dependencydependency• technical abilitytechnical ability• economic abilityeconomic ability• legallegal• socialsocial• culturalcultural• languagelanguage

• management visionmanagement vision

DonorDonor• loss of marketsloss of markets• loss of jobsloss of jobs• future compensationfuture compensation• securitysecurity• IPRIPR• culturalcultural

• political (at national political (at national level)level)

Barriers (international)Barriers (international)

RecipientRecipient• damage to damage to

competitive strengthcompetitive strength• economic imperialismeconomic imperialism• entry barriersentry barriers• investment, tax, investment, tax,

patent, copyright patent, copyright restrictionsrestrictions

• govt purchase policygovt purchase policy• industrial standardsindustrial standards• cultural valuescultural values

DonorDonor• exporting jobsexporting jobs• create create

competitioncompetition• national securitynational security• multi-use multi-use

restrictions restrictions (MTCR)(MTCR)

• brain drainbrain drain

BondsBonds

Intra-firmIntra-firm• strategystrategy• structurestructure• normsnorms• product lifeproduct life

Inter-firmInter-firm• partnerspartners• global networkingglobal networking• technology technology

sharingsharing• joint venturesjoint ventures• majority majority

ownership by ownership by recipientrecipient

• global competitionglobal competition

Creating BondsCreating Bonds

Bonds are created through the Bonds are created through the application of appropriate strategiesapplication of appropriate strategies

• Organisational designOrganisational design

• Human resource managementHuman resource management

• Organisational controlOrganisational control

Organisational designOrganisational design

Global (national) matrix designGlobal (national) matrix design Locate components in various Locate components in various

countries (regions)countries (regions) Placement of the manufacturing Placement of the manufacturing

basebase Placement of marketingPlacement of marketing

Human resource Human resource managementmanagement

Job rotation (internationally - cf Job rotation (internationally - cf Rafael)Rafael)

Rotate between knowledge creator Rotate between knowledge creator and utiliserand utiliser

Hire personnel in host (recipient) Hire personnel in host (recipient) environmentenvironment

Organisational controlOrganisational control

Single profit centre for knowledge Single profit centre for knowledge creator and utilizer in different creator and utilizer in different countries forms a common goalcountries forms a common goal

Compensation policies integrated Compensation policies integrated into the profit centre planinto the profit centre plan

Transfer the firm’s most recent Transfer the firm’s most recent technology to company units in other technology to company units in other countries - creates a strong bondcountries - creates a strong bond

Content of Technology Content of Technology TransferTransfer

Information / know-howInformation / know-how

PersonnelPersonnel

Methods / skillsMethods / skills

Machinery / equipment / toolingMachinery / equipment / tooling

Mode of Technology Mode of Technology TransferTransfer

DelayedDelayed ParallelParallel SequentialSequential Provision of expertiseProvision of expertise Direct investmentDirect investment LicensingLicensing Joint VentureJoint Venture

INTEGRATIVE TECHNOLOGY TRANSFER FRAMEWORK

BARRIERS

BONDS

CONTENTOF

TRANSFER

MODEOF

TRANSFER

SUCCESSOF

TRANSFER

Modes of Technology Modes of Technology TransferTransfer

PassivePassive• Uptake of information by recipient Uptake of information by recipient

without participation of the donorwithout participation of the donor Semi-activeSemi-active

• Intermediary between user and Intermediary between user and source of technologysource of technology

ActiveActive• Full participation by the userFull participation by the user

TECHNOLOGYBASE

PUBLICATIONS

COMPUTERISEDDATA BASES

PERSONAL CONTACTS

TECHNOLOGY TRANSFERPASSIVE MODE

TECHNICALINFORMATION

USER

PRIMARY INNOVATORFOR APPLICATION OFTECHNOLOGY

TECHNOLOGYBASE

PUBLICATIONS

COMPUTERISEDDATA BASES

PERSONAL CONTACTS

TECHNOLOGY TRANSFERSEMI-ACTIVE MODE

TECHNICALINFORMATION

USER

PRIMARY INNOVATORFOR APPLICATION OFTECHNOLOGY

TECHNOLOGYTRANSFER

AGENT

SECONDARY INNOVATOR FOR APPLICATION OF TECHNOLOGY

Redeployment StrategiesRedeployment Strategies

ParallelParallel• simultaneous introduction in home and host simultaneous introduction in home and host

environmentenvironment DelayedDelayed

• introduced in home environment and later introduced in home environment and later in host environmentin host environment

SequentialSequential• introduction in host environment after the introduction in host environment after the

life-cycle is completed in home environmentlife-cycle is completed in home environment

ParallelParallelsimultaneous introduction in home simultaneous introduction in home and host environmentand host environment

AdvantagesAdvantages• Good for products or Good for products or

processes with short processes with short life cycleslife cycles

• Global presence can be Global presence can be a barrier to entry for a barrier to entry for competitioncompetition

• Good with centralized Good with centralized management and management and multi-plant strategymulti-plant strategy

DisadvantagesDisadvantages• Different regulatory Different regulatory

policies across policies across countries countries

• Large pre-market Large pre-market development costs to development costs to recouprecoup

• Needs similar marketsNeeds similar markets

• No learning curveNo learning curve

DelayedDelayedintroduced in home environment introduced in home environment and later in host environmentand later in host environment

AdvantagesAdvantages• Good when products Good when products

or processes have a or processes have a longer life cyclelonger life cycle

• Significant learning Significant learning curve effects for curve effects for similar marketssimilar markets

• Allows for some Allows for some product modificationproduct modification

• Allows for meeting Allows for meeting regulatory differencesregulatory differences

DisadvantagesDisadvantages• May lag the May lag the

technology of technology of firms in host firms in host environmentenvironment

• Delay may attract Delay may attract competitorscompetitors

• Host environment Host environment may want state of may want state of the art for prestigethe art for prestige

SequentialSequentialintroduction in host environment introduction in host environment after the life-cycle is completed in after the life-cycle is completed in home environmenthome environment

AdvantagesAdvantages• Development costs Development costs

have often been have often been recouped earlier and recouped earlier and this is a final squeezethis is a final squeeze

• May match needs of May match needs of less developed host less developed host environmentenvironment

• Best for localised Best for localised match, rather than match, rather than global matchglobal match

DisadvantagesDisadvantages• May not be able to May not be able to

compete with newer compete with newer technologiestechnologies

• Resistance from host Resistance from host to using old to using old technologytechnology

• Needs decentralised Needs decentralised control due to control due to dissimilar markets in dissimilar markets in home & host environshome & host environs

Appropriate TechnologyAppropriate Technology

Not all technology that works in the Not all technology that works in the donor environment, will work in the donor environment, will work in the environment of the recipientenvironment of the recipient

One must take note of the One must take note of the recipient’s capabilitiesrecipient’s capabilities

Transfer will cause changesTransfer will cause changes

Appropriate Technology Appropriate Technology cont...cont...

Examples:Examples:• Norwegian fishing in AfricaNorwegian fishing in Africa• Use of aluminium by LandRoverUse of aluminium by LandRover• Composting toiletsComposting toilets


Recipient’s capabilities:Recipient’s capabilities:• There is a need to determine the There is a need to determine the

capability baseline of the recipientcapability baseline of the recipient

• What is the capability?What is the capability?• How (processes and activities) is the How (processes and activities) is the

capability delivered?capability delivered?• With what (facilities and resources) is it With what (facilities and resources) is it

achieved?achieved?


Recipient’s capabilities:Recipient’s capabilities:• There is a need to determine the There is a need to determine the

capability baseline of the recipientcapability baseline of the recipient

• Business capability - what?Business capability - what?• Functional capability - how?Functional capability - how?• Operational capability - with what?Operational capability - with what?


Recipient’s Business Capabilities Recipient’s Business Capabilities (taxonomy)(taxonomy)• Innovation capabilityInnovation capability• ProductivityProductivity• Availability of capitalAvailability of capital• ProfitabilityProfitability• Labour achievement and attitudeLabour achievement and attitude• Management achievement & developmentManagement achievement & development• Market positionMarket position

Appropriate Technology Appropriate Technology cont...cont... Recipient’s Functional Capabilities Recipient’s Functional Capabilities

(taxonomy)(taxonomy)• Management and administrationManagement and administration• MarketingMarketing• Defining requirementsDefining requirements• Technology managementTechnology management• ManufacturingManufacturing• Purchasing & inventoryPurchasing & inventory• Assembly, integration & testAssembly, integration & test• SalesSales• Maintenance and supportMaintenance and support


Recipient’s Operational Capabilities Recipient’s Operational Capabilities (taxonomy)(taxonomy)• PersonnelPersonnel• Assets, buildings & infrastructureAssets, buildings & infrastructure• SoftwareSoftware• ToolsTools• VehiclesVehicles• Parts and inventoryParts and inventory


Forms of technological change:Forms of technological change:• Labour savingLabour saving

– makes jobs easiermakes jobs easier– increases productivityincreases productivity

• Labour enslavingLabour enslaving– reduces labour to tending machinesreduces labour to tending machines

• Labour replacingLabour replacing– eliminates the need for workerseliminates the need for workers


Resistance to technology is usually Resistance to technology is usually not to the technology itself, but to:not to the technology itself, but to:

• ExploitationExploitation• DegradationDegradation• Physical conditions (health & safety)Physical conditions (health & safety)• Economic conditions (job security)Economic conditions (job security)


Introduction of a new technology is Introduction of a new technology is easier when the appropriate easier when the appropriate management practices are involved:management practices are involved:

• Worker involvementWorker involvement• RetrainingRetraining

– EXAMPLE: AUSTIN MINI BODY PANEL WELDSEXAMPLE: AUSTIN MINI BODY PANEL WELDS

Appropriate Technology Appropriate Technology cont...cont... Some types of technology are not Some types of technology are not

appropriate for some types of applicationsappropriate for some types of applications An integrated understanding is needed of An integrated understanding is needed of

the following attributes:the following attributes:• technical (which baseline?)technical (which baseline?)• humanhuman• organisationalorganisational• economiceconomic• environmentalenvironmental

• culturalcultural


State of the recipient country:State of the recipient country:• Basic education and health careBasic education and health care• Nature and state of the economyNature and state of the economy• Nature and state of the infrastructureNature and state of the infrastructure

• IS THE DEPLOYMENT OF ADVANCE IS THE DEPLOYMENT OF ADVANCE TECHNOLOGY APPRPRIATE IN THE TECHNOLOGY APPRPRIATE IN THE TARGET ENVIRONMENT?TARGET ENVIRONMENT?

Cross Cultural IssuesCross Cultural Issues

Global competition and world-wide Global competition and world-wide opportunities bring with them other opportunities bring with them other issues:issues:

Four dimensions of business culture:Four dimensions of business culture:• Power distancePower distance• Avoidance of uncertaintyAvoidance of uncertainty• IndividualismIndividualism• ““Humane” aspectsHumane” aspects


Power distancePower distance• society’s acceptance of inequality and society’s acceptance of inequality and

power hierarchypower hierarchy• how autocratic is the environment?how autocratic is the environment?• who makes the decisions?who makes the decisions?• how can matters be influenced?how can matters be influenced?


Avoidance of uncertaintyAvoidance of uncertainty• society feels threatened by changesociety feels threatened by change• society’s ability to tolerate new society’s ability to tolerate new

(deviant) ideas and behaviour(deviant) ideas and behaviour• desire to keep the status quodesire to keep the status quo• conservatismconservatism


IndividualismIndividualism• collectivism where members look collectivism where members look

after each otherafter each other• vsvs• individualism where people take care individualism where people take care

of themselvesof themselves


““Humane” aspectsHumane” aspects• to what degree is assertiveness and to what degree is assertiveness and

the acquisition of mone extolled?the acquisition of mone extolled?• what is the community’s value what is the community’s value

system and concerns?system and concerns?– caringcaring– people firstpeople first– quality of life quality of life

Maintaining Technology Maintaining Technology Intelligence 1Intelligence 1

Professional meetings and symposiaProfessional meetings and symposia Contact with researchers outside the Contact with researchers outside the

firmfirm Contact with suppliers and/or customersContact with suppliers and/or customers Search on-line databasesSearch on-line databases Employees maintain outside contacts Employees maintain outside contacts

not formally recognised or rewarded not formally recognised or rewarded (informal gatekeepers)(informal gatekeepers)


Persons specifically responsible for Persons specifically responsible for external technology search (formal external technology search (formal gatekeepers)gatekeepers)

Personnel exchanges/assignments with Personnel exchanges/assignments with universities (Rafael)universities (Rafael)

Personnel exchanges with government Personnel exchanges with government research departments (CRIs) ?research departments (CRIs) ?

Co-operative research agreements with Co-operative research agreements with CRIs, universities or other firmsCRIs, universities or other firms


Visiting researcher programmesVisiting researcher programmes Company-sponsored seminarsCompany-sponsored seminars Membership in research Membership in research

consortia/clustersconsortia/clusters Company membership in trade and Company membership in trade and

industry groupsindustry groups

Technology Transfer Technology Transfer Success 1Success 1

Quality of documentationQuality of documentation Ability of recipient to absorb the Ability of recipient to absorb the

technologytechnology Applicability of the donor and their Applicability of the donor and their

technology in the environment of technology in the environment of the recipientthe recipient

Opportunity of the recipient to Opportunity of the recipient to undergo on the job trainingundergo on the job training

Technology Transfer Technology Transfer Success 2Success 2

Language, culture and Language, culture and interpersonal relationshipsinterpersonal relationships

Quality of development models Quality of development models and prototypesand prototypes

Ability of the recipient to establish Ability of the recipient to establish the technology through continuous the technology through continuous operation and keeping it on paroperation and keeping it on par

technology management 4: technology transfer cp beukman engineering management programme university...

Documents

b technology transfer

particular technology

nature of technology

technology management

howpurchase technology

firms technology agreements

scope b

process b tt