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'TECHNOLOGY TRANSFER.
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A user of a technology does not have to be its creator or inventor. In fact, most
inventions are created outside the firms that benefit from them. Innovation may
also occur outside a firm's boundaries, and even if it happens within the firm, it
may be confined to one department or division.
Transfer of technology is a process essential for the wide application and
utilization of technology by one or more users. In this chapter we Introduce types
and channels of technology transfer. We discuss some cases of international
technology .. transfer, present examples of successful national programs of
'technology transfer, and examine a model of intra.firm technology transfer.
OEFINlTIONS AND CLASSIFICATIONS

Tech110/ogy rran.yfer is a process that permits the flow of technology from a source
lo a receiver. The source in this case is the owner or holder of the knowledge, while
the recipient is the beneficiary of such knowledge. The source could be an
individual, a company, or a country. Jain and Triandis (1990) define technology
transfer as a "process by which science and technology are transferred from one
irnJividuai or group to another that incorporates this new knowledge into its way of
do in g things." The National Aeronautics and Space Administration (1995) defines
it as "the process of providing the technology developed for one organizational
purpose to other organizations for other potentially useful purposes."
Technology transfer can be divided into the following categories:
• Imernarional technology transfer, in which the transfer is across national bound
aries. An example of this type is the technology transfer from industrialized
countries to developing countries.
•!/egiona! rechnology rransfer, in which technology is transferred from one region

of the country to another, for example, from Florida to Alaska.
•Cross-indusrry or cross-secror technology transfer. in which technology is trans
ferred from one industrial sector to another. An example is the transfer oi
technology
from the space program to commercial applications.
•!nrerflrm rechnology rransfer, in which technology is transferred from one firm
to
another. An example is the transfer of computer-aided design (CAD) expertise

and
computer-aided manufacturing (CAM) machines from a machine tool

manufacturing _
firm t o a furniture-producing firm,

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•Intra firm technology t ra nsf r, in which technology is transferred within a firm
from one location to another. An example is the transfer of technology from a com
pany's California division to its Miami location. Intra firm transfers can also be
made
.from one department to another within the same facility. For instance, if one
department uses sophisticated computer technology and another relies on manual
work-an imbalance that could hinder (he company's operation-technology
transfer can balance the system by providing full use of computer technology
throughout the firm.
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CHANNELS OF TECHNOLOGY FLOW -

Technology is intangible; it flows easily across boundaries of countries, industries,
departments, or individuals, provided that the channels of flow are established.
) There are three types of channels that allow the flow of technology;
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P<;i_enera/ h a nel
c n s: The technology transfer is done unintentionally and may
Proceed without the' continued involvement of the source. Information is made
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available in the public domain with limited or no restrictions on its use. This
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information is harnessed by users and applied to their purposes. Channels of this

type of transfer include education, training, publications, conferences, study
missions, and exchange of visits.
)''• 'j:Reverse-engineeritlE_channe/s: Other channels in which.the transfer occurs with

no active contribution- from the_ source include reverse engineering and emulation.
Here a host, or a traditional receiver of a technology, is capable of breaking the code
of technology and developing the capability to duplicate it in some fashion. This is
feasible- provided that {he host has the knowledge to do this and there is no legal
violation of intellectual or property rights. For example, a product that is put on the
market by company A can be purchased by company B. re verse-engineered, and
introduced to the market as a competitor to company A's product, as illustrated by
the case in the accompanying box. This is a powerful method for technology
transfer. Its limitation is its ability to transfer the developer's tacit knowledge. Such
knowledge is usually gained during the product development process.
CASE OF RE ENGINEERING AT COMPAQ

Reverse- engineering was used by Compaq Computer Company to develop us first
PC clone Compaq's founders had all the components needed to build a PC except
for one
S of technology -a ROM-BIOS chip (read-only memory chip, which stores the
basic input/output system computer code). This technology was owned and
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protected by IBM. The IBM chip was not for sale. Compaq hired some competent
engineers and computer programmers and asked ·them l'D reverse-engineer the
product (Cnngely, 1996) They were successful, and Compaq was able to introduce
its IBM-compatible PC at a lower cost than an IBM PC. The product was an
instant hit and launched the company' s successful entry into (he PC maret Compaq
selected the niche of portable computers to make its entry into the market. Compaq' s
strategy of cloning an IBM computer gave it access to all the software written for
the IBM PC. Its strategy for entering the portable market gave it a special niche with
little competition. Its lower price gave it an advantage with the customers and with
the computer dealers, who could increase their margin of profit. According to
Cringely. Compaq set a start-up record, selling 47.000 computers worth$ 11 million
in its first year.
')Etanned channels: The technology transfer is done intentionally, according to a

planned process and with the consent of the technology owner. There are several
types
of agreements that are used to effect planned transfers. They permit access to, and
use of technological know-how:
3:;Licensing: The receiver purchases the right to utilise someone else' s techncrlgy.
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This may entail an outright urc ase or a payment of an initial lump-sum amount
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plus a percentage of sales. lflU",,.;,..� ..lD w!- .lM,..viJA"j't)
f/> Franchise: This is a form of licensing; however, the source usually provides
some type of continual support to the receiver, for example, by supplying materi
als, marketing support, or training. This channel is commonly used in food chains
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and ser\iice organizations, such as McDonald' s, Burger King, and B::iza Hut. l!iv..f'.l't:tlr;
)>Joint venture: Two or more entities combine their interests in a business enter
prise in which they can share knowledge and resources to develop a technology,
produce a product, or use their respective know-how to complement one another.
They also share in the rewards of the venture. International joint ventures are
frequently used by recipients to acquire technology and by sources of technology
to gain access to local markets and distribution skills. (r�)
,P Turnkey project; A country buys a complete project from an outside source and
the project is designed, implemented, and delivered ready to operate. Special
provi.�ions for training or continued operational support may be included in the
agreement between the panics. Engaging in a turnkey project is equivalent to
buying· or selling a machine, but on the scale of an entire plant. Most innovative
firms would not sell a plant or license technologies that they intend to exploit
themselves (� �.U � � �)
f!;> Foreign direct investment (FD!): A corporation, usually a multinational, decides
to produce its products or invest some of its resources overseas. This permits the
transfer of technology to another country, but the technology remains within the
boundaries of the firm (i.e., is still controlled by the firm). This type of investment

has advantages for both the investor and the host country. The investor gains
access to a labor force, natural resources, technology. or markets. The host country
receives technological know-how, employment opportunities for its people.
training for the workforce, and investment capital that adds to the development of
its infrastructure. The host country will also gel tax advantages, since most
employees will be contributing to the local economy. The multinational may also
gain a lax advantage by locating facilities offshore in a country or territory that
gives a tax break. Many U.S. pharmaceutical companies have located facilities in
Puerto Rico because of the lax advantage they can get with this arrangement. Some
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developing co�l!�'.·i r � provide lons-ter
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�Technical consonium and joint R&D project: Here, two or more entities collab
orate in a large venture because the resources of one are inadequate to affect the
direction of technological change. Typically this type of venture takes place be
tween two countries or two large conglomerates. For example, a consortium was
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formed between France and England to develop a supersonic plane (the Con
corde). Both nations needed to combine their technical and financial. resources to
develop expensive technology and, in the meantime, to compete with their rivals
) in the United States. Several similar ventures and consortia exist under the aus
) .. pices of the European Union (EU). European governments have established a

number of projects to help national companies compete with American and
Japanese firms. Programs the EU supports include "Race," a project to advance
communication technology; "Espirit," for information technology: and ' ' Jessi," to
bolster semiconductor research. Project "Eureka" is. an independent research
pr_?gram involving 24 nations (U.S. Office of Technology Policy, 19�7). All these
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cooperative projects aim to advance research, develop technology, and transfer
knowledge to participating member stales. The Japanese government, through its
Ministry of International Trade and Industry (MIT!), fosters alliances between
industry and government· in projects of national interest and scope. Examples
include the VLSI project undertaken to make the Japanese semiconductor indus
try competitive and the Firth Generation project, which focuses on advancing
artificial intelligence and parallel processing (Cheney and Grimes, 1 991).
American industry has also changed some of its ways of doing business, moving
i' from a continuous-competition and closed-technology mode of operation to a
more flexible, cooperative mode. Examples are the cooperation between IBM.
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Apple, and Motorola to produce the power chip for the personal computer;
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between Microsoft and NBC to lap into the future of the multimedia industry; and
between Apple and Microsoft to exploit each other' s strength in technology.
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'INTERNAL TECHNOLOGY TRANSFER
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In large organizations, technology is often produced developed and introduced by

different organizational elements. The movement of technology from R&D team
to manufacturing and then to marketing is a very complex process. It involves a
Osmania University MBA {Technology Management)-2003-2005--TTM

number of decisions. One of them is timing, i.e., when the technology is ready to
111ovc fro111 R&D to 1)roduction and finally to market. Timing is a function of
preemption of competition. A late or premature introduction of technology into the
rnarkct will have adverse i mpa cts
.
Locnt ion of technology transfer is also a critical decision factor, which includes
whether the technology should reside i n our existing or a new portion of the
enterprise. It requires understanding of the relationship of technology to R&D
elements. The factors impacting the location of technology are existing technology
products, process requirements, and organizational learning. Multi functional
teams composed of the developers and receivers of technology are most effective
in ensuring smooth transfer. Multi functional tean1s enhance effective
communication methods for bridging cultural, informational and geographical
differences among different departments of the organization.
Most successful enterprises emphasize the need of gathering accurate information

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on how the technical factors would i mpact fun ctionality and cost Information
gathering should be completed prior to moving technology from R&D to product
development.
There.are a number of internal barriers to transfer of technology between R&D

and production. The barriers may be caused when R&D goals are not known to the
production team and vice-versa. When R&D is distant from reality, production
will have little confidence in the transferred technology. Ineffective
communication is also a barrier to technology transfer. Production is more
resistant to i nnovation and is bound by routine.
Vasconcel!ous study indicated that the strongest barrier to internal technology

transfer from R&D to production was the lack of effective communications. This
lack of understanding of the goals of either team. The next barrier is the testing of
new processes and products paralyze the production l i ne. To solve these problems,
multi functional teams, that participate in both R&D and production lines should
be developed which i ncreases communication effectiveness and understanding of
each of participant's culture,
EXTERNAL TECHNOLOGY TRANSFER
Successful external technology transfer depends on a number of factors including

0 Type
• Complexity
• Transfer mechanism
• Relationships
• Core competencies
Osmania University MBA (Technology Management)-2003-2005·-TTM

• Organizatioirnl culture
Methods of external technology transfer:

An enterprise can acquire or transfer technology through a number of formal
mechanisms which include
• Co-operative and collaborative ventures
• Licensing
• Contracting
• Enterprise acquisition
Co-operative and collaborative ventures:

Co-operative and collaborative ventures are structures between two or more
enterprises. These may take various organizational forms. One form of venture
is through equity in a jointly owned new enterprise. A general partnership is
another form of venture. Here two or more company's consortium of many
companies including universities, industry and the government laboratories form
an alliance. The degree of sharing resources can vary from little to total or can be
limited to specific aspects of the share of objectives.
Most frequently stated objective of the co-operation and collaborative alliances is

to develop or transfer new technologies. Co-operative R&D allows partners to
reach critical structures more rapidly for large complex technology projects
eg. the European Airbus project. Partnership and alllances allow the merging of
technological knowledge and skills form multiple enterprise improvfog
innovations in a chosen technology.
Licensing:
Licensing is transfer of less than ownership right in intellectual property to a third
party to permit the third part to use intellectual property. It can be either exclusive
or non-exclusive, Transfer of technology through licensing is useful method for
capturing economic rents of technological innovations. A small. firm usual! y.
benefits more by licensing its technology than trying ta'"cohimercialize it:
� Commercialization requires a high expenditure and resources beyond tl;,e scope of
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many small enterprises. The small enterprises must broaden operational
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(' Enterprise acquisition:
� Another approach for developing a new technology is to acquire another enterprise
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which may have essential technological elements. These enterprises may have
� developed a critical technological element such as devices, processes, products or
�: services which may be a key element in the technological strategic process. The
target organization should have core competencies and a dominant market position
� where the overtaking enterprise wants to enter. The motives for acquisitions can
be
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• Market and 11iarkct-related motives

• Cost reduct ion
• Financial
• Technology know-how
• Political.
INTERNATIONAL TECHNOLOGY TRANSFER
The technological production base previously confined to the industrialised

nations of the West and the Nonh has recently spread to a large number of other
countries. Developing countries have realized that industrialization is the only
means of reaching SLKJO-economic parity with Europe and the United Slates. For
many Asian and third-world countries, technologies imported from industrialized
countries provided the initial base for industrial development. Starting with
industries requiring low levels of skills, developing countries are gradually
introducing industries requiring both greater levels of skills and more
technological capability. Figure 11-1 shows the growth of high-tech goods
produced by the Asian Tigers. Today, many of the newly industrialized countries
(N!Cs) arc equipped with an appropriate industrial and technological base. They
have become highly competitive in world markets. In some instances, they enjoy
the support of government-instituted fiscal and economic measures to remain
competitive in the global arena. They may also possess other advantages, such as
lower wages or the avail-ability of natural and human resources. As a result,
exports from the Pacific Basin and some developing countries have successfully
pe11etrated the domestic markets of industrialized nations, particularly those of the
United States.
In the majority of cases, the migration of technology occurred through
international technology transfer, through mutual cooperation agreements, or
through direct purchases from the United States, Germany, Japan, and other
industrialized countries. In several cases, it occurred through the establishment of
overseas manufacturing facilities by multinational corporations. U.S. corporations
have frequently chosen to invest in production facilities in other countries to take
advantage of lower labor rates and close-ness to markets.
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THE ASIAN TIGERS AND HIGH-TECH GOODS
The migration of technology and production facilities from the United States to
Japan and other Asian countries in the 1970s and 1980s occurred because of a lack
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� of competitiveness in U.S. manufacturing. Migration occurred in a set of mature
technologies, such as consumer goods and automobiles. The crucial element
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resulting in the loss of U.S. competitiveness has been not me weakness of
technologies but a managerial attitude that failed to commerci ally utilize the
technologies in a timely and effective
manner (Hayes and Abernathy, 1980). Many people believe that weak investment
manufacturing R&D. the short time horizon of managers, poor quality, and lack of
focus on technology transfer have all contributed to the problem (Berman and
Khalil, 1992-Szakonyi, 1992).
Most countries are pushing hard to develop their technological base and to convert
their knowledge into value-added products and services. Newly industrialized
countries and developing countries continue their push for tech11ology transfer.
They are· becoming keenly aware of the importance of technology for economic
development. They
have seen evidence in the huge success achieved by the Tigers of Southeast Asia
Singapore, Malaysia, Indonesia, Korea, Taiwan, and Hong Kong. In spite of some
setbacks these countries have achieved major economic gains. A successful
technology transfer effort spurs economic growth. Many models have been used to
effect the transfer process with varying degrees of success. The Tigers have
targeted niches of technology and turned them into world-class products able to
compete in global markets.
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FIGURE 11 -2
TECHNOLOGY S PECIALIZ ATION AMONG THE TIGERS Avoiding
head-to--head contests for technology supremacy, the Tigers prefer to target
niches where they can quickly turn technologies into world-class products.
Source. Business Wee*. Dec. 7. 1992.
Singapore Model
Many lessons can be learned from the success of Singapore's effort for economic
development. Factors contributing to its success can be extracted from a speech by
Prime Minister Lee Quan Yu during the African Leadership Meeting held i n
S ingapore i n November 1993. The prime minister enumerated the essential basis
for development.
Some of his points are paraphrased below:

1 Establish/maintain a clean, effective government that is well respected by the
people (Officials must have a philosophy based on understanding and
appreciating the development process.) Eliminate corruption and reward officials
adequately to protect them from corruption.
2 A void internal squabbles for national unity.
3 Build on areas of strength (e.g., agriculture or availability of labor force).
4 Encourage savings to increase investment while avoiding external debt.
Osmania Un'1versity MBA (Technology Management)-2003-2005--TTM
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5 Encourage family projects and local industry to create economic opportunities.
and keep people from emigrating to large cities.
6 Do not waste funds on huge projects.
7 Encourage investment by both small investors and multinationals.
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8 Promote education.
9 Develop effective strategies for technology transfer.
Singapore built its strategy around becoming a regional business services hub· in
the Southeast Asia region. It serves as a regional marketing and technical support
center, a regional financial and business center, and a regional headquarters for
multinational companies (MNCs). It also selected niche industries for
specialization, including electronics and computers, ship repair and maintenance,
petroleum refining, and aerospace maintenance and repair (Wong, 1995).
TECHNOLOGY TRANSFER IN TAIWAN

Taiwan' s approach to technological development and technologytransfer is
another success story. In Taiwan, industrial technology R&D is enhanced by a
nonprofit corporation known as the Industrial Technology Research Institute (ITRI).
This institute conducts technical R&D on targeted projects directed and funded by
contracts from the Ministr y of Economic Affairs, a central government agency.
The research results are "�n applied to assist or guide the private sectors either
through technology transfer or technology expansion (Chen. 1990).
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Taiwan has located ITRI next to two of its top universities in science and
technology:--rn.e..National Tsinghua University and the National Chiao-Tung
University. A targeted Project.for technology transfer can draw upon the scientific
and technological expertise of the faculty of these two line institutions. The
participation of the private sector through the investment and business planning of
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industrial facilities completes the team of players needed to spur industrial

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development.
To facilitate the transfer further, an industrial park is located in close proximity to

permit a project incubated in ITRI to be spun off to a privately owned facility in
the industrial park. Such collaborations among government agencies,
nonprofit corpora-lions, and private industries have been very successful in
transferring industrial technologies within Taiwan, especially in areas of high risk
or crucial importance. Taiwan also relies heavily on its well-educated nationals
who are trained overseas. Incentives are provided to induce them to return home,
thereby bringing technology to Taiwan. Technology transfer through people is a
very effective transfer mechanism. Figure 1 1-3 depicts the return flow of
Taiwanese trainees between 1985 and 1992. Examples of technologies successfully
transferred are integrated circuit manufacturing, personal computers; and
automation technologies (Chen, 1990).
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1000
800
600
400
20(1
1985 86 87 88 89 90 91
FIGURE 11-3
RETURN FLOW OF TECHNICALLY
TRAINED TAIWANESE
U.S. NATIONAL TECHNOLOGY TRANSFER

The United States is by far the most intensive technology-producing country in
the world. U.S. leadership in science is evident from the nation' s large number of
Nobel Prize winners in science, more than twice that of each of its closest
competitors, the United Kingdom and Germany (Figure 1 1 -4).
The creation of technology in the United States is also superior The space
technology, the defense technology, and the technology available within industry
are unmatched by any in the world. How is it, then, that U.S. competitiveness
declined in the 1970s and 1980s and that the nation has a huge deficit in its balance
of trade? The answer lies within the fundamental principles of MOT. A major
factor in competitiveness and wealth creation is how technologies are spun off to
commercial and service enterprises. Transferring technology from where it is
created to where it can be used effectively is at the heart of this issue. Having
realized this fact, the. U.S. federal government has made technology transfer a
significant activity (National Aeronautics and Space Administration, 1995). The
government has also moved to shore up its technology policy through effective
partnering and joint investment in technology with the private sector (Brody,
1996).
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N OBEL PRIZES BY C OUN TRY
The National Aeronautics and Space Administration (NASA) has been very active
in promoting technology transfer and has created a national network of Technology
Transfer Centers. Exhibit 11 -1 shows the types and fu nct ions of these centers.
NASA has also established prm;edures for reporting new technology innovations
and publishes the information in its Tech briefs magazine. It has developed
guidelines for partnership agreements and sponsored several university-based
Technology Transfer Centers to effect technology-based economic development
locally and regionally. The Southeast Region Technology Transfer Centers located
at the University of Alabarr,a, the Georgia Institute of Technology, the University
of Florida, and several other academic institutions are examples of technology
transfer centers working to link industry users to technology producers.
EXIDBIT 11.1
The national network of Technology Transfer Centers and offices. sponsored by
NASA is dedicated to the timely transfer of scientific advances and technologies
resulting from NASA' s aeronautmd space programs and other federal R&D to
practical applications throughout the U.S. economy.
NASA field centers: Each of NASA' s field centers has a Technology Transfer
Office to coordinate and manage a full range of technology transfer activities,
Osmani� University MBA (Technology Management)-2003-2005--TTM
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incl uding new technology reponing. technical assistance, cooperative projects, and
industry outreach.
Rl'gio1111/ Technologr Trunsfi'r Cenrers: The NASA Regional Technology Transfer
Centers (R'fTCs) arc staffed by technology transfer experts offering technical
consultation services and linkage to other experts in the field. The. RTTCs provide
services to industry within their designated regions and assist industry clients to
locate, assess, and commercialize technologies from NASA and the federal R&D
base.
N{//ional Technology Tran.�fer Ce111er: The National Technology Transfer Center
(NTTC) serves as a national clearinghouse/gateway for federal technology transfer
and provides se rvi ces and assistance in traini n g planning, and outreach.
,
Ear!h Dara Analysis Center: The Earth Data Analysis Center (EDAC) provides
technology tra ns fer services in support of the distribution and transfer of remote
s ensing/geograph ic information systems data and technology.
Technology Application Team: The Technology Application Team (TATI works
with industry to ·identify and solve critical problems with existing NASA
technology and to develop cooperative projects and relationships that address
technological needs of national or industry wide significance
Computer Software Management and Information Center: The Computer
Software Management and Information Center (COSMIC), operated by the
University of Georgia, is NASA' s technology:ransfer program for collecting and
documenting computer software technology produced by NASA and distributing
it to U. S. private, government, and academic organizations.
Center for Aerospace Information The Center for Aerospace Information (CASI)
maintains mailing lists and distributes NASA technology transfer publications,
including the annual Spin off report. CASI provides responses and referrals to
inquiries about technology transfer CASI also provides centralized techn
. ology
transfer documentation support for all NASA centers.
The post-cold war era sparked a great interest in the transfer of technology from
national and defense-related-,laboratories. Jo. the private sector. The federal
government operates more than 700 laboratories with an annual budget of over
$25 billion (Bloch, 1992). As military budgets decline, many government
laboratories must find a 0ew mission or go out of business. One survival strategy is
to become more self-sup-porting through the sale and transfer. of technology to the
private sector. This was not previously an integral part of the mission of most of
these laboratories, and switching to a new form of operation requires a change of
organization culture. It also requires a systematic, proactive technology transfer
effort. Perrin ( 1990) noted that the Department of defense (DOD) spent over $70
b i l l ion in R&D and employed 70 percent of the engineers and 38 percent of the
scientists working for the federal government. However, utilisation of the

developed technologies by secondary applications was minimal. Perrin prescribed
a proactive approach to the transfer of DOD tec.hnologies to solve civil proble ms .
This approach, based on the use of transfer agents rather than passive efforts such
literature dissemination, proved successful upon implementation. Perrin
enumerated the advantages of the active transfer process:
•
Conveys timely information on current and planned developer user programs
•
Provide real time feedback and criticism
• Permits the transfer agents to manage and control in a user-need or applied
dnvctior
•
Requires a relatively small expenditure of effort and time relative to the results
·
obt ai n ed
Sandia National Laboratories, a federal laboratory, 10 Quartex, Inc., a small, private sec
tor business that commercialized the technology. A shareholder of Quanex learned that
a new quartz resonator force sensor had been invented by an employee of Sandia Na
tional.Laboratories. Quanex invited the inventor to join its staff and be part of a team
that would bring his invention to markel. Quanex assumed all obligations 10 file and
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maintain patents. The waiver process followed a guideline that stipulated a balance be
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tween technological commercialization and the preservation of government access 10
lax-supported inventions.
There are barriers that exist in such a transfer endeavor, including the cultural gap be
tween industry and government laboratories, legal issues, and the need to formulate an
innovative business structure to permit a smooth transfer. Wood and EarN isse ( 1992)
mentioned the following factors as contributing to the successful technology transfer
project from Sandia to Quanex:
•
Technology transfer fit for Quartex' s strategic planning.
• Sufficient proprietary rights from Sandia 10 Quartex to justify· the risk of
investment.
•
Potential for additional proprietary coverage for the technology through
tmprove
men I patents and new technology.
•
A landmark invention.
•
Diverse market applications for the technology.
• Incentives for sustained technology transfer and support by a product
champion.
•
Required resources within Quartex for product commercialization.
'
J
INTRAFIRM TECHNOLOGY TRANSFER
\b
A firm attempting to transfer technology from one site to another or from one
division to another must approach the transfer process in a systematic and
deliberate manner. For the transfer to be successful, infrastructure, including
facilities, equipment and personnel, must exist or be developed. In addition, a
transfer team may be needed orchestrate the transfer. Adtthar Squires calls these
teams the "Maestros of Technology (Bowser, 1987).
ln fact, complicated transfer projects may require two teams, one at the source
one at the receiving end of the technology. Each team is led by a "champion" and
consists of a number of specialists, depending on the complexity of the technology
and the size of the project. All communications regarding the transfer [marketing,
quality assurance (QA), production, etc.] are channeled through the transfer-team
leaders. Beruvides and Khalil (1990) developed an intra firm technology transfer
model based on experience gained from an actual project involving the relocation
of an existing production facility. The model is shown in Figure 11-5.
In this model, the project statts when a company decides to acquire new
t<:clrnology through the. purchase. of a smaller entrepreneurial company located
thousands of miles away. In order to facilitate communication and consolidate
operations, the company decides to transfer the entire production facility, including
technology and operations, to its headquarters facility. This calls for an organized
process of migration technology transfer. The proper infrastructure must be
created to permit the transfer, and a competent team must be assembled to execute
the transfer process. In this particular case, the team comprises two separate groups:
one at the headquarters and one at the acquired-company location.
Although these groups are in different locations, they should recognize that they
are on the same team with one line of communication that permits clear, open
communication. The remaining requirements of the transfer process are indicated
on the flowchart in Figure 11-5.
The transfer team is involved in developing schedules and budgets and preparing
the new site. Before the transfer, the employees for the new site are selected and
given training, at the facility of the acquired company, in the technology being
transferred. This culminates with turning over operations to the employees at the
new site to ensure a smooth transition.
An appropriate amount of inventory of the product is built up as a reserve against

delays or inefficiencies during the transfer. At the optimum time, parallel
production facilities are set up, with half the equipment at the old site and the other
half relocated to the new site. This ensures continued production throughout the
transfer project, an important criterion desired by the company. Once the new site
is qualified and the product specifications are achieved at the new site, the
remaining production equipment is relocated to the new site. Full production
\ 1-
begins at the new sit.,, quality is monitored, and the transfer team is disbanded.
Several useful guidelines for setting up ·a transfer team are recommended by

Beruvides and Khalil (1 990):
1 The smaller the team, the better,
2 People work best in an atmosphere of trust and healthy competition.
3 Building teamwork and motivating the team members are critical.
4 The chain of command and communication channels should be well
understood by all
5 Success is largely dependent on the quality of the people
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FIGURE 11-5
INTRA FIRM TECHNOLOGY TRANSFER MODEL
\ "\
UNIT-II
• Technology assessment
• Assessment of innovation
• Technological metrics X
• Technological audits y
• Reengineering the technology delivery process'*
• Technology transfer for small companies**
• Technology transfer by strategic partnering '1': -¥·•
** material not found

UNIT I I
-m• 3 HH 'Fl I 'f":
During the. entire lifecycle of process of a technology, it is important to determine if ·

technological development is meeting, or wi l l meet, the original objectives set prior to the
decision to commit enterprise resources. Assessing not only involves observing a
particular program but also extend into the overall enterprise system for delivery of
·
technology. Many innovations have fai i ed not due to technology but due to total system of
translating the concept into a successful operational product or service.
Technology assessment can occur in any stage of technological
development. During the early stages, this is performed to determine which technology
offers the best opportunity to achieve enterprise objectives. In later stages of the process,
the objective of assessment is to determine if technology under development is capable of
fu lfil ling the goals that were set. Technology assessment as a process also requires that a
member of a leadership team be assigned sole responsibility for ensuring that technology
is successfully developed ex:- chief technological officer.
\?ti::' 22
l
A technology must pass through three gateways to become commercially or

socially embedded in its intended environment. A triple gate .way methodology, according
to Benson & Sage is useful in evaluating an emerging technology in the early phase, prior
to the expenditure of substantial enterprise resources. These triple gateways, according to
Benson & Sage i s
·
• Market
• Systems-management
• Technology
Market gateway:
The market gateway uses a market uncertainty analysis approach, which covers new users,
user skepticism behavior adjustment, competitive technologies, unpredictable
technological developments, new uses and legal . barriers. All these arise due to the
uncertainty about the new technology i n users mind and the correlation with the existing
technologies.

Systems-Management gatewav:
Management gateway is analyzed by reviewing the c haracteristics of the enterprise
developing the technology. This includes the enterprise modes of development.
• Entrepreneur
• Small high technology enterprise
• Large enterprise with multiple markets and products
• Multiple enterprises such as consortia and congtp merates which operate in multiple
sectors. Each mode incorporates risk avoidance, exploitation, flexibility, marketing skills,
legal skills, core competencies, enterprise informatio n and communication structure and
culture .
. Technology gateway:
Technology gateway is evaluated using uncertainty and risk analysis including
innovativeness and complexity due to technology production. The higher the degree of
innovativeness the higher i s the risk associated with the technology. Technological
),
complexity, uncertainty appears to increase geometrically with the number of new
technologies associated with a new technological development. Ex- difficulty encountered
in the development of t.he star war project of U.S.department of defense, a program that no
longer exists
ASSESSMENT OF INNOVATION
A technological development can be either a breakthrough (followed by U . S .
enterprise� or an incremental improvement (as followed b y far eastern enterprises). The .
'
type of development has major impact as to development strategy and embodiment. Each
F
type of development has numerous subsidiary implications. Only few developments are
truly breakthroughs; most are only minor incremental changes.
r Green et al classify a breakthrough or radical technology by the extent to which
'the technological br-tlw ct:"' 11 • m)ti< h 1I•e t: :bnaJegieai development i ncorporated
. embryonic and rapidly developing technology. The radical ness of a technology can b e
classified by the extent the development i ncorporates technology that is new to t h e
enterprise. The amount of financial risk i s another measure of radical nature o f t h e
technological development. Green e t al showed that the degree of radical ness related to
• Technological uncertainty
l
' •
Enterprise technological experience and knowledge
• Enterprise business experience and knowledge
•
Fiscal resources associated with development of technology
"·
Osmania University MBA (Technology Management)-2003-2005--1TM

TECHNOLOGI C A L l\1 ETRICS
There are many differen t ways to view measures of technological performance.

. Performance metrics re l ate s to who is viewing the tec hn o l ogic al development. Each
viewer e va l uates the performance base-Ion his/her perspective. The U.S.congress has the
fol lowing vi ewpoi nts :
• Societal
• Political and gover n menta l
• E n terpri se
• System or project
The metrics which are utilized by each of these viewpoin ts are quite different. A very
posi tive metric from a societal view point may form a negative aspect from enterprise
viewpoint ex: -use of e n v iron me nt a l l y acceptable capital intensive technology for power
stations.
Societal metrics:-
The objective of societal metrics is to examine the impact of a potential
technological development before it is deployed, since technology results in social change.
There is no obvious link between technology and societal changes; however unanticipated
and unintended societal changes have occurred because of introduction of new
technology. Th e relationship between technological change and societal change is a
dynamic system, which displays periodicity and can lapse into chaotic behavior.
Ex:- the growth of automobile industry has generated fortunes for many companies. But at
the same time, it also had negative effects on society like creatin g environmental pollution
and many deaths due to accidents.
Political or governmental metrics : -

Governments should view tec h nologica l developments a s a means to increase nation's
competitiveness. Appro p riate stra teg ie s and re gu l at io ns should be made depending upon
the priorities of different countries. Technology strategies are either technology push or
technology pull. Technology push strategies should be used by government laboratories to
completely harness their technological capabilities. Technology pull strategies are demand
- driven and needs motivated pull strategy depends on level of effort expended and the
level of resou�f<es committed.
Technology pull strategies include market-impact models which are used for perceived
needs to improve global competitiveness. Economic - impact models for technological
pull strategies develop measures related to the perceived needs of countries or individual
enterprises. .

Enterprise mctrics:-
An enterprise assessment view point of a technological development is concerned with
how a new technology process or service can achieve market success. A new
technological entrant into a market can create additional demand for the product or the
share of already existing players will get reduced. Ex:- i ncreased sale for all Microsoft
products with introduction of windows 95. With the introduction of cellular services, the
percentage of subscribers for fixed telephone line got reduced. The figure below shows
diffusion model for a new market. This diagram indicates that adopters of a new
technology depend on three factors:
I . existing new technologies/p ;:�--of competing companies

2. already existing technologies or products of competing companies_
3. potential technologies or products that may hit the market in near futu re
of competing companies
MARKET INCUMBENTS
(NEW BRAND)
POTENTIAL MARKET REMAINING POTENTIAL

NEW ENTRANTS
INCUMBENTS MARKET
ADOPTERS
(OLD BRANDS) (NEW NENTRANTS )
New entrant Diffusion model
I
System or project metrics:-
Project metrics are related to technical performance measures and are quan titative desi g n
factors. Blanchard and Fabrycky have proposed a system cost effective model approach.
Cost effectiveness relates to the metrics of a system in terms of system effectiveness. Cost
effectiveness can be expressed as specific ratio metrics such as:
System benefits
• Bendits effectiveness metrics = ---------------------
Life cycle cost
.; .
System effectiveness
• S y s t e m cfkct ivcncss metric = -----------------------------
Life cycle cost
Avai l a bi l ity
• Availab i l ity effectiveness metric =
Life cycle cost
System capacity
• C<1pac i t y effectiveness metric =
Life cycle cost
Supply effectiveness
• Supply effectiveness metric =
Life cycle cost
Another means to ensure system or project performance is through the technical

performance measurement (TPM) p rocess. This is a process to demonstrate the degree,
anticipated and actual achievement of technical objectives. The process helps i n early
detection or prediction of problems by providing visibility of actual versus planned
technical performance.
TECHNOLOGY BENCHMARKING
It is a process by which an enterprise performs a direct comparison of its technological
performance and other entities with similar operations. Technological metrics are an
i mpo rta n t element in benchmarking process. The evaluation can be with competitors or
others who are best i n the world in that particular technology. The benchmarking process
consists of ten steps.
• Identification of metrics for benchmarking process
• Identification of enterprise to be compared
• Data methodology and collection
• Analysis of current performance and differences
•
Forecast for future performance levels
• Communication of findings of the process
• Fu ncti o ncil goal establishments
•
Development of e11terprise action plan to i mprove performance
•
I111pk111enti n g a n d monitoring action plan
•
Recal ibration of developed benchmarks to determine if i mprovements are needed
()s1nania Universily �1B A (Technology Managenient)-2003-2005--TTM

TECHNOLOGICAL AUDITS
�..
Audit is a tool used to evaluate the conditions or the existing status of a certain
sector in an organization. Accountants often use it to evaluate the financial status of a
company. The American Accounting Association defines it as a systematic process of
objectively obtaining and evaluating evidence regarding assertions about economic
actions and events to ascertain the degree of correspondences between those assertions
and established criteria and communicating results to interested users.
r A technology audit is an analysis performed to identify the strengths and
;-
weaknesses of the technology assets of an organization. Technology audit is a continu ous
process of assessment, unlike some accounting processes.
According to Ford, a technology audit should prov.ide answers to the following questions:
I. What are technologies and know-how on which business depends?
2. What is the company's technology position compared to its competitors?
L.
3. What i s the life cyc;le position on which company depends?
4. Is the company effectively protecting its technologies?
5. What emerging technologies inside or outside the company could effect its
technology ppsition ?
6. What is the value of technology to its customers?
7. What social, political or environmental factors might i mpede the natural growth of
technology? ·
To answer the above questions, technology audit should include the following steps :
• Familiarisation with the technology objectives and operations of the enterprise

•
Examination of the technology driven systems used to achieve the technology
objectives
• Appraisal and evaluation of the adequacy and. effectiveness of the total
technology driven system of the enterprise
• Reporting of the findings and constructive recommendations
After the audit and assessments, a company can develop a statement of objecti v e s
that form the core for its strategy. A n appropriate organizational structure is needed to
enable the company manage its technology.
-·
_..: '
Tech nologv audit model : -
Gacria-Arreola developed a Technology Audit Model(TAM) that includes i mport ant

areas to consi dered in a technology audit. The objectives of TAM are:
I. To determine current technological status
2. To stress areas of opportunity
:\ . To take advantage o f firm's strong capabilities
TAM is a three level model, with each level going deeper into more specific functions.
The upper level is composed of six categories. at the second level, 20 assessment areas
exist. Finally, 43 assessment elements .constitute the third level. TAM assesses
company ' s position in technology. The model is based on following six categories:
I. Technological environmenr:- successful strategies are usually implemented in

favorable conditions that foster teamwork, creativity and flexibility.
2. Technologies categorization:- new technologies emerge continuously thre.atening to

render or rendering cutTent ones obsolete. It is imp01tant to evaluate the company's level
of knowledge and appreciation of its own technologies.
3. Markers and competitors:- an understanding of the environment in which the

company competes is critical for technology management. Relations with outside players
change as new technol ogies are adopted.
4. !11110l'alio11 process:- i nnovation occurs under certain given conditions, which are
avai lable w i t h most of the firms. Bringing the innovation into the market in the minimum
pos.s ible t i me is as i mportant as the innovation itself.
5. Value added functions:- technology is brought to the market through value added
chain-activities that add value to the final product. Performance evaluation of the
functional areas and the entire system is critical.
6. Acquisition and exploitation of technology:- the effective adoption of technology

requires knowledge from the source to the receiver. Technology effectiveness depends on
how su ccessfully this process is implemented. Business decision for acquisition and
exploitation of technology determine the success of the organization.
Osmania University MB A (Technology Management)-2003-2005--TTM

NEED FOR STRATEGIC ALLIANCE
With rapid development, no firm, however big, can hope to master all the technologies
that may be relevant to it. It will .have to source some technologies externally. But
rapid development also means that by the time a technology is packaged in products
and processes, the state-of-the-art (and the market opportunities) has moved on - the
latest technology remains knowledge intensive, tacit and often specific to a firm.
Collaboration provides a way for firms to access and share this technology. Although
· there is presently a great deal of discussion about collaboration- or ' cooperation'
' strategic alliances' , or whatever term istld;to describe it- the activity of two or more
partners working together to mutual benefit is nothing new. Perhaps what is new is the
extent of this collaboration. Firms co-operate with suppliers, customers and
competitors, and with firms with which they have no commercial relationsh ips. They
work jointly with universities, polytechnics, independent research and technology
organizations and government laboratories. The focus and scope of these
collaborations vary widely, with broad differences between and within industrial
sectors
Factors contributing to Strategic Alliance

• The growing knowledge-intensity of production
• Changes i n the concept of corporate organization
,.
• The globalization of competition
• Revolution in communications
;
). • Uncertainty and the need for flexibility
Reasons for inter-firm cooperative agreements
• technological complementarily (l ong-term transactions involving the exchange

or sharing of technology between parties)
•
technology transfer (a one way flow of information, generally via a l i cense)
•
marketing agreements (often between a producer and a distributor
• helps set industry standards
• building up of economic, technical and managerial capabilities for the efficien t
use and further development of the transferred technology.
Osmania University M B A (Technology Management)-2003-2005--TTM

O bjectives in establishing busi ness alliance:
• to develop new products
•
to develop no production processes
•
to develop new markets
• to develop new inter-firm relationships
Benefits of business a l liance:
• Turns a potential competitor into a partner
• Flexibility in operations
•
Eliminate bureaucracies in central ized organizations
• Eliminates the need for mergers
• Increase international reach and market
•
Reduce risks i n i n ternational expansion
• Shorten time between decision and implementation
•
Learn embedded knowledge from partner
• Evolve new embedded knowledge through partnershi p
Principles i n Strategic Alliances i n Research and Development
• Aims to s hare the knowledge produced
• Gaining control is not the obj ective
• Requires new institutional behavior
• Relationships is most important
•
Long-term positional advantage is emphasized
• Organizational flexibility is emphasized
• Governance structure that controls is counter productive
Osni:111i;1 U n i versity MBA (Technology Managemcnt)-2003-2005--TTM

UNIT - III
\-·.
l • Introduction
• Transfer rnodes -
\
• Technology search strategy ,_,.,
• Dimensions of technology transfer

• Features of technology transfer ,, _
• Routes of technology transfer v--- '"- _
• Technology transfer agreements / ' ,.- ·
,. Technology transfer and absorption at unit level ./'\

-.
• Procedural and legal issues in the context of drafting TT
agreements**
** material not found
'
'
Osmania University MBA (Technology Management)-2003-2005-·TTM
U N IT III
0 bjeclives
• . Know the meaning o f technology transfer and understand the know-how transfer modes
a n d the steps involved in technology transfer.
Understand the planning for technology search, the identification of appropriate

technology for .the company, and t he factors in volved in technology transfer and the rou tes
of technology transfer
•
Understand the nonns for and factors in pricing of technology, mode of payment,
agreements made between the l icensor and licensee.
INTRODUCTION
(f1 ·
The first step of any technology is its generation and development Technology once developed
can be by its developer or owner, or can be transferred to another user immediately or after
sometime at any stage till maturity, dictated by commercial expediency. Generally, newer
technologies are transferred among the developed countries and matured or nearly matured
technolog ies are transfe11"ed from developed to developing countries at the enterprise
·
level.
(�\ ..--Basically there. are t".'o ways of acquiring �ew technology: develop it or purchase it. The
\_!: .·· second way of acqmn ng new technology is commonly called "technology transfer". The
important reasons for purchasing technology are:
F·\
G �(
i) it involves little or no R&D investment
(ii) technology can be used quickly
(iii) technical and financial risks are often quite low.
There-are also good reasons for selling technology, such as
(i) increasing return o n R&D investments
(ii) technology may not have immediate use
(iii) technology has, already been utilised upto its l i mit.
r:\\ Th<=refore, technology transfer occurs because of the existence of "buyers' and "sellers" . The
V sell ers are called "transferers" or " licensors" and the buyers are called "transferees" or
" l i c e n sees " in the technology transfer process.
Osmania ·University MBA (Technology Management)-2003-2005--TTM
"") I
T r a n s fe r . as d e fi n e d , m e a n s t h e a c q u i r i n g t h ro u g h p u r c h a s e a n d u s e o f t e c h n o l o n T h e re fo r e , t h e
.
d e f i n i t i o n o f t e c h n o l o g y t ra n s fe r i t s t h e a c q u i s i t i o n a n d u s e o f k n o w l e d g e . T h e re i s n o tran s fe r o f
tech n o lo g y u n l e s s a n d u n t i l th e t e c h n i c a l k n o w l e d g e i s p u t t o u s e . T e c h n o l o g y tra n s fe r is n ot. restri c t e d
here o n l y t o s c i entific o r e n g i n e e r i n g i te m s . T h e m a n u fa c t u r i n g ; m a r k e t i n g , d i s t r i b u t i o n a n d c u s t o m e r
s e r v i c e a r e a m o n g t h e f a c t o rs t h a t a r e i n c l u d e d i n te c h n o l o g y t r a n s f e r
.
T h e key f a c tors i n t e c h n o lo g y t r a n s fe r i n c l u d e
• T r a n s olantation of technolo.g y i n v o l v e s s h ift fro m o n e set o f w e l l - d e fi n e d c o n d i t i o n s 10 a n o t h e r
s e t i n w h i c h at l e a s t o n e k e y variable m ay d iffer. S e c o n d ly t h e rec i p i e n t m a y a p p l y t h e
te c h n o lo g y t o a d i ffe r e n t p u r p o s e fro m t h a t o f t h e s u p p l i e r
• A s e n s e o f o ppu r t u n ism p re v a i l s i n te c h n o l o g y tra n s fe r , w h e t h e r j u s t i fi e d o r n o t
• T h e tra n s fe r p r o c e s s e m.b r a c e s a r i c h · v a r i e t y o f m e c h a n i s m s a n d r e l a 1 i o n >J1i_p5 b e tw e e n
r e c i R i e n t a n d d o n o r ( s u p p l i e r n f t e c h n o l o g y ) . T h e p ro ce s s c a n v a r y fro m a r o u t i n e p e o p l e l e s s
p a s s i v e trans fer t o t u rn k e y c o ntract w h ere t h e d o n o r t a k e s t h e fu l l responsibility for a l l p h ases o f
the c o ntract
• T h e n a t u re o f t h e tra n s fe r r e d tedJJLolo_g.Jl a.n d h o w it i s t r a n s fe r r e d are c r i t i c a l to t h e su c c e s s o f
t h e tec h n o l o g y t ra n s fer
T e c h n o l o g y tra n s fe r m a y b e g i n as a s o l u t i o n to s o m e o n e e l s e ' s p ro b l e m s : A d o p t i o n o f s u c h " o u t s i d e
s o l u t i o n t o s o l v e an ' i n s i d e ' p r o b l e m i s t ec h n o l o .£ y tra n s fe r T h e a d v a n t a g e l i e 9 n a v o i d i n g " re i n v e n t i n g
.
.
· · ·
t h e w heel"
M O D E LS O F T E C H N O L O G Y T R A N S F E R
The following figures illustrate the m o dels o f technology transfer (so ur c e : M o g a v e x c o 1 9 8 2 )
Agencies that try to make technology transfers happen include government departments,
financial institut10ns, industries, technology transfer agencies, consultants, venture capital
companies, research companies, and R&D organisations, etc. These are the bridging agencies
of. Figure 6. 1 . The users of new technologies comprise private and public sector industries,
giant technically oriented agencies such as Indian Space Research Organisation, government
departments, Atomic Energy Commission etc. It can be seen that a wide spectrum of
participants in the total economy are technology users.
Figure 6.2 illustrates schematically the diffusion of technology from a mission-oriented

agency that supports development of technology for purposes of its mission and then arranges for
the technology diffusion to other industries by knowledge transfer. This is usually a slow process.
Figure 6.3 shows the generation and transfer of technology as a companion of problem solvmg.
Figure 6.4 shows a synthesis of the entire process of technology transfer on a large scale.
Osmania Uni versity M B A (Technology Manngemenl) -2003-2005--TTM

TECHNOLOGY TECHNOLOGY
S O U RCES USERS
FIG. 6. I B R I DG ING AGENCIES
I RESEARCH IqI DEV ELOPMEN I q DIFFUSION I:• q ADOPTION
FIG. 6.2 R&D DIFFUSION MODEL
NEED FELT
A RTICULATED
APPLICATION OF
AS PROBLEM
SOLUTIONS
D
CHOICE O F S O LUTIONS SEARCH FOR SOLUTIONS
FIG. 6.3 PROB LEM SOLOVER MODEL
Osn1ania Univcr.sity frIB ..\ {Technology Managetncnt)-2003-2005--TTM

er=> I ADAPTI O N 10
DEVELOPING !==) I COMMU NICATION I !==) I UTILISATION
FIG. 6.4 TECHNOLOGY TRANSFER SUMMARY MODEL
TECHNOLOGY TRANSFER MODES

r
Technology transfer modes have been categorised basically as being passive or active, which
refers .to thf'. t�af!sferor' s �ole .in the application of technology to the solutiorof the user' s
problem. This 1s illustrated m Figure 6.5 (Source : Mogavexco, L.N. and R.S. Shane; 1 982,
Technology Transfer and Innovation, Marcel Dekker, New York, 1 982, p. 15). If the
transferring mechanism presents the technology to the potential user without assisting the
user in its application, namely by a report or oral presentation, then the technology transfer
mode is said to be passive. This is actually knowledge transfer. If the transferring activity
assists the potential user in the application of technolo_gy, then the technology transfer mode
is said to be a�tive. In this proceeys, the transferr.in_g act1v1ty goes beyond mere interpretation
of the transmitted data and advises the potential user on how to apply the technology, or
demonstrates the applicability of the technology to the perceived use. There could however
be an intermediate also, which may be called semi-active mode in which transferring ·
activity is in between the active and passive modes.
User needs
Public sector :
Traffic saftey
Health care
Public transportation
Technolog'z'. base : Crime prevention
Engmeenng Tech. transfer Drinking water
Communications n1odes Construction
Medicine
Electronics
Energy Private sector :
Chenucals Industry
Computers etc. Agriculture
� Mining
Consun1er product<;
-" Auton1otive
Medicine etc.
j
;:> Osmania University MBA (Technology Management)-2003-2005--TTM
The three different types of technology transfer modes are discussed in detail (Source for
Figures 6.6 to 6.8: Mogavexco L.N. and R.S. Shane, 1982, Technology Transfer and
I n n o va t i o n p p . 1 6- 1 8) .
,
T h e Passive Mode
The passive mode, also called dissemi nation mode, is il lustrated i n Fi gure 6.6. The most
familiar arid widely used form of passive technology transfer is the published literature. _
The re is no direct communication or assistance from the originator of the technology to the
producer of finished consumer item. Yet thousands of products are ma d e a n d c o n s u m e d from
t h i s fo r ill o f k n o w l e d g e tra n s fe r. S i m i l a r form s of p a s s i v e te c h n o l o g y tra n s fe r are s e l f- t e a c h i n g
m a n u a l s s u c h a s t e l e v i s i o n r e p a i r m a n u a l s a n d h o w - t o - d o - i t g u i d e s fo r h o m e re p a irs
The Sem i-active M od e

I n t h e s c. 111 ;, - a c t i v c rn o d c o f te c h n o l o g y tran sfer t h e r o l e o f tec h n o l o g y tran s fe r a g e n t ( i n a d d i t i o n to
s e l f- e d u c a t i o n of s e l f- r e t r i e v a l o f e l e m e n t s of t e c h n o l o g y tra n s fe r) i s s o m e w h a t l i m i t e d .T h e
t e c h n o l o g y t r a n s fe r a g e n t ( co n s u l t a n t o f tec h n o lo g y e x p e r t ) s c r e e n s a v a i l a b l e p e r t i n e n t
i n fo rrn a t i o n fo r p ro d u c t d e v e l o p m e n t . H e re t h e r o l e o f tra n sfer a g e n t i s o n l y t h at o f a n
i n t e r p r e t e r o r c o 111 111 u n i c a t o r . H e w i l l n o t a c t i v e l y p a r t i c i p a t e in t h e a pp lic a t ion o f t h e tec h n o l o g y
The Active Mode

T h e a c t i v e m o d e t e c h n o l o g y tra n s fe r c a rri e s t h e p r o c e s s t h ro u g h to a n a c t u a l d e m o n stration as
s h o w n in F ig u re 6 . 8 , T h e figure d e m o n s trates v ar i o u s s te p s i n v o l v e d i n t h e c o n stru c t i o n o f t h e
m o d e l o r a p r o d u c t fro m p r o c u re m e n t o f m a teria l t o fa brication t o a s s e m b l y . I n t h i s m o d e the
t e c h n o l o g y tran sfer a g e n t o r c o n su lt a n t w i l l be fu l l y i n v o lv e d a n d acts a s a b r i d g e i n tech n o l o g y
tra n s fe r fro rn te c h n o lo g y s o u r c e to e n tr e p re n e u r o r i m p le m e n t i n g a g e n c y .
Horizontal and Vertical Technology Transfer:
H o r i z o n t a l T e c h n o l o g y T ra n s fe r i m p l i e s tra n s fe r o f t e c h n o l o g y fro m o n e firm to a n o t h e r . S u c h

t r a n sfers t a k e p l a c e g e n e ra l ly, b e t w e e n t h e fir m s l o c a t e d in d i ffere n t c o u n tr i e s m ai n ly d u e to reaso n s
o f c o m p e t i t i o n a n d m a tu rity o r n e a r m a t u rity o f t e c h n o l o g i e s . V ertical tec h n o lo g y transfer m e a n s
t r a n s fe r o f tec h n o lo g y from a n R & D o rg a n i z a t i o n t o a firm . S u c h t r a n s fers a r e m o s t l y w i t h in t h e
c o u n t ry a n d t h e t e c h n o l o g i e s a re n e w a n d m a y o ften r e q u i re fu rth e r efforts i n term s o f e s tab l i s h i n g
c o m m e r c i a l v i a b i l i t y . S u c h a tra n s fe r i n v o l v e s c o n si d e ra b l e risk .
Technology Technical User

Base Information
Publications, Primary innovator

Data bases,
Personal
contacts
FIG 6.6 PASSIVE M O D E
Osmania University MBA (Technology M anagcmcnt)-2003-2005--TTM

�··
D I M E N S I O N S O F TE C H N O L O G Y T R A N S F E R
The time and resources required to transfer a given technology de p end upon :
·
• what is actually transferred

• the mode of tran sfer
• the absorption capabilities of the recipient e nterprise
• the capabilities and motivation of the supplier enterprise
• the technology gap between the supplier and the recipient
Supplier Technology Recipient

Enterprise Enterprise
t Gaps in technology capability t

IDENTIFICATION OF TECHNOLOGY GAPS
FEATURES O F TEC H N O L O G Y PACKA GE

The technology package consists of three principal elements namely, product design,
production technique and management systems.
Product design may-range from simple items to highly complex (e.g., automotive) parts.
Production techniques arid plant layout include blueprints and flowcharts, formulas a n d
recipes, process sheets, fabrication instructions, tools and fixture designs, operat i o n a l
procedures and material, specifications. Management Systems consist .of various r l ans,
layouts and technical control systems (along with related marketing and financ i al
controls). Included are plant design and iayout, quality -. control and tes ting, mater i a l
, procurement, inventory control, equipment maintenance and repair and machine loading
techniques.
, The three principal categories of technical i nformation or know-how i n herent i n
technological systems are general knowledge, system-specific and firm-specific
knowledge. These various categories of knowledge may be in the form of wntten
materials or may be embodied. rn technical assistance, on-the-job training or built i nto
fabricating or processi n g equipment.
General Knowledge refers to information common to i ndustry such as blueprint readi ng,
tool and fixture design and fabrication, Welding techniques/etc.
l
System Specific Knowledge refers to information and industrial capability within a firm that
gives it a competitive advantage over rival finns. This "knowledge and know-how may cons i s t
Osmania University M B A (Technol ogy Management)-2003-2005--TfM

of special sol utions of procedures to a problem, acquired in the previous manufacturing
ex pe ri e n c e i n related product or process fi el d s
.
Finn Specific Knowledge differs from system specific in that it cannot be attributed to a
particular production item and usually results from the firm' s, overall activitiein such areas as
grey-iron casting or their material fields. This technical knowledge or know-how goes beyond
the general level possessed by the industry as a whole.
RO UTES OF TEC H N OLOGY TRANSFER
The p rinci pa l routes of enterprise -to-enterprise technology transfer are.

a) Licensing or Franchise.
Licensing and Franchise arrangements vary from a complete package of
i n s truct i o n s , t e c h n ical assistance and training to mere permission for the
m a n ufac tu re and sale, of a p rod u ct
.
h) Suppliers of Marerials and Parts.

Su p pliers of materials and parts are often willing to provide a full ran � e of
technical support, information and manufacturing know-how, and they can oe as
effective in know-how transfer as i n industrial licensing arrangements. The
manufacturing of colour TV sets i n India i s a classic example of this type. The
manufacturers d id not have a formal technology transfer agreement but had an
understanding with the foreign suppliers of materials and components regarding
technical assistance in production.
c) Fquip111e11r Supp lier

A variety of technical services are provided by equ ipment suppliers, including
operational and maintenance procedures and even processing-know-how (typical
i n chemical i ndustry). Some technologies are machine based and therefore the know-
·
how i s transferred along with supply of plant and equipment ·
d) Outrighr purchase e.g., of turnkey plants or of complete manufacturing and

o peratin g specifications, drawings, know-how, performance data add technical
assistance.
e) Acq u i s i t i on of the company or business owning the technology.

f) J o i n t ventures wi t h the technology owners.
g) Franchising of trademarks and technical, management, and marketing know-how.
h) Combinations and variations of any of the above.
TECHNOLOGY TRANSFER AGGREMENTS
A technology transfer agreement is a contract between the licensor and licensee, which
specifies in detail , the scope of services and terms and conditions from both sides. Drafting
of this agreement is often a complex job requiring considerable skill and experience. The
interests of the two parties may sometimes be conflicting. However, the obligations of the
licensor and licensee may broadly relate to the following:

Technology
Technology
base
Technical
information transfer agent c)
Publications, Secondary innovator Primary innovator
Data bases,
Personal
contacts
FIG 6.7 SEMI ACTIVE MODE
c)
I
Technology Technical Champion
base inforn1ation
Publications. Prinu1ry innovator Secondary innoYator

Data bases,
Personal
contacts
6.4 TECHNOLOGY SEARCH STRATEGY

Very large companies have a special department or unit dealing with technology transfer
and licensing. Medium and small sized firms have no formal department to take care of
technology licensing. A company, big or small,-may at one time or other, require transferring
technolo�y or import of technology from outside. The process of transferrin g technology
either ' m ' or ' out' is subject ti© rlil0hagerial and other resource limitations. Technoiogy
search strategy has to be undertaken by the unit to identify suitable technology within the
enterprise or import of technology from outside to maintain growth and profitability o f
the company.
The market conditions in any country are dynamic and can operate in a very ad hoc man ner.
It should be a major concern for companies to undertake search strategy to identify suitable
projects o r components for sustained growth. An effort to find a su itable new product an d
knowledge of the potential licensor of that product may lead to an carry decision a n d
successful implementation o f the project.
It is useful to define why new products are required, the type of product that i s requ ired ,
its stage of development and whether this product will fit with the existing skills and
resources within the firm. The success of seeking a new product will also depend on"
among other factors, their technology search strategy and whether the relevant factors are
defined and employed at the outset.
An audit of products, citing-strengths and weaknesses, may be useful in identifying gaps in the
portfolio that could be filled by the use of licensing.

R e c o g n i ti o n o f C o m m e r c i a l l y V i a b l e P r o d u c ts
A n y search strategy will identify a large nu mber of potential licensing opportunities but many
of them w i l l be u n s u i table or i na ppropriate for a particul a1· firm at a particular time. For a
rirm w i t h s m a l l research and development facilities, any J?roduet requiring substantial further
clevclopnicnt before marketing is l i kely to prove unsuitable · as a potential l i censing prospect.
Products with a known track re<;orcl, and substantial marketing and production back-up are
l i kely to be least problematical for smaller firms. A perfect license may consist of a product
·
t hat :
has good protection i n the l icensee market.
is sold under a well-known trade mark.
requires no changes in the licensee market.
for which there is a substantial demand.
i s subject to an exclusive agreement.
has a good ' fit' w i th l icetlt$e>peration.
'
i s transferred under a reasonable' tech nology agreement.
has assured continued technical and managerial suppot1.
Recognition of commerci ally viable products is clearly a function of the firm or its
consultant. The major advantage of a l i censed product over the one produced in-house i s
that the licensed product might have been tried and tested and found t o b e successful
e l sewhere. Hence some of the risks associated with the new product have been reduced to
the benefit of the l icensee. The major disadvantage is that the technology may be generally
matured or even: obsolete.
. .
Ou tward Licensing
The licensor has to develop a search strategy based upon his knowledge of the market and the
characteristics of his product, i n identifying suitable l icensees for his product. Following the
search strategy the licensor w i l l need to take into account the type of the licensee firm and its
reputation, its market strength and production capabilities before making a decision. Personal
empathy with licensee personnel i s also an important factor.
Transfer of technology under a license agreement comprises the culmination of a multi-stage

process carried through by both partners to the agreement. Pre-transfer ·
stages can be tabulated as below :
Licensor Licensee
i) Marketing strategy defined I) Definition of product requirement
ii) License decision ii) Evaluation of In-house o r external
development
iii) Evaluation of Technology iii) Decision to license
iv) Definition of Technology iv) Search for partners
v) Search of pat1ners v) Transfer of technology
vi) Transfer of technology
Osrnania University MBA (Technology Managemcnt)-2003-2005--TTM

...
Obligations of the licensor:

I . Supply of technical means
2, Technical assistance to the staff of licensee
3 . Provision a s t o the results and consequences o f the non-satisfaction o f the guarantees.
4. Exclusive and non-exclusive rights
5. Preservation of secrecy
6. Title of licensor
7. Period of agreement
8. Intellectual property rights
9. Updated technologies and improvements
10. Training
1 L Help in marketing and exports
12. Access to R&D
Obligations to licensee:
L Payment
2. Secrecy
3. Use of know- how
4. Maintaining specified- quality or standard
5 . Adequate technical and managerial standards
6. Facilities for the experts/staff of licensor
7. Access to factory premises as required
8. Legal disputes
•
The agreement is a formal instrument that serves the following purposes. It is :
• A statement of the expectations of parties that have come together to achieve a common
and specified purpose.
• A memorandum defining the responsibilities of the parties, ensuring -adequate
commercial benefits for both.
•
A prescription for resolving conflicts that may crop up while transferring the technology.
There have been several studies regarding technology transfer agreements. Even model
agreements have been evolved by the U . N and national governments in several countries .
However, these remain only as guide lines, and technology transfer is more an expression of
mutual faith rather than a legal issue.
When drafting a technology agreement, licensor and the licensee should take enough
·
care to ensure whether the following aspects are covered by the agreement
·-,
• Training should be provided to the licensee's personnel and technical expertise should be
supplied by the licensor during the period of agreement.
• Renumeration of the package should depend on manufacturing process; composite know
how, basic engineering plant design, assistance in procuring plant and equipment,
train i n g etc.
• Durarion: it is closely l inked with remuneration. Generally licensor prefers long duration
of agreement as royalty earnings increase. However, licensee should take care to reduce
the d u ration of agreement. This can be done by absorbing the technology and technical
k n ow-how as s oon as possible.
• Renewal: renewal may be necessary for new processes or technologies developed by the
l i censor d u r i n g the agreement period. Terms of fee/royalties should be specified in case
of a renewal.
• A ccess 10 impro ve111e12rs in rechnology: licensor should inform the licensee the latest
clcvelopmen ts in transferred knowchow. Terms should be negotiated for ffee transfer or
extension of royalties.
TECHNOLOGY ABSORBTION AT UNIT LEVEL
The ability of a firm to recognize the value of new external technology,

assimilate it and apply it to commercial ends is often called absorptive capacity.
Absorptive capabil ities at firm or industry level :

Simply importing technology from external sources does not guarantee success to a firm. The
success depends on the absorptive capacity of the firm, its resources and the trsnsfer
cababilities of the supplier enterprise. Five managerial behaviors are needed to build a true
ab:;orptive capac i ty.
l. Scan broadly. Because tech nological knowledge comes from

i n n u m e ra b l e sources, firms need to scan broadly so that they can
catch a valuable technology. Indeed, technology scanning is one of
the most important activi ties that a firm needs to u ndertake before it
formulates a strategy.
2. Provide for continuous i n teraction. A characteristic of companies

s k i l l ed In i m porting knowledge I S that . they allow for continuous
i nterac t i o n w i th outside sources. Studies on information flows in
research l a boratories demonstrate that such continuous i n teraction
benefits pe1formance.
3. Nurture technological gatekeepers. Technological gatekeepers are

self-selected ind ividuals who expose themselves to more outside
sources than their colleagues. They are also excellent technical
performers who keep their colleagues apprised of the latest
developments m their respective fields. Nurturin g technological
-P l
gatekeepers is an i mportant managerial activity . leading to a firm' s
absorptive capacity
4. Nurture boundary spanners. Bou ndary spanners are people who

understand the source and the receiver and can translate as well as
disseminate knowledge. Multiple boundary spanners are needed to
·
avoid bottlenecks.
5. Fight NIH (Not Invented Here) Syndrome. Many organizations

experience resistance from their personnel t o the knowledge or
technological capability imported from outside. This is often referred
I
to as NIH syndrome. The most successful anecdote dot NIH i s an
organizational culture that embodies a sense . of urgency for
mnovation, encourages i n teractions with outside sources of knowledge
and helps employees understand the success never comes in isolation.
Technology assimilation i s a very complex process. It i s the ability of the transferee

(recipient) to put the borrowed technology to effective use effectively i n all respects of
manufacturing, quality assurance and marketing. The Japanese definition of technology i s
more apt i n outlining a l l the dimensions of technology assimilation. I t encompasses fi ve
M ' s namely :
1>
!. Raw materials and resources : M l
' ·, 2. Machines and equipment : M2
3. Manpower : M3
4. Management : M4
5. Markets for technology : MS
The following are some of the problems encountered by small and medium enterprises in
technology absorption :
Service facilities :
Material testing, heat treatment, instrument calibration, engineering
standards and quality control measures.
Manufacturing :
Material standard and specification, manufacturing processing procedures ,
formulas on alloys and compounds, welding techniques, casting and other metallurgical an d
material substitutes.
Equipment : Special equipment designs and standardization of major machine components .
. Osmania University MBA (Technology Management)-2003-2005--TTM

UNIT - IV
• Technology absorption v-'
• Technology diffusion
• Constraints of technology absorption
•
/
Technology import in India ._,,,/
" Technology absorption .
,.
• Technology evaluation �
• Diffusion of technology /
Osmania University MBA (Technology Management)-2003"2005--TTM

UNIT - I V
TECHNOLOGY ABSORBTION
Technology is said to be fully absorbed if it is fully understood, of that it
1s m a position to be further optimized and upgraded. Technology absorption
involves know why exercises, basic investigation into the product/process
systems. This will require complete in depth understanding learning about the
technology package. To avoid further dependence on the technology transferor,
technology absorption requires R&D projects in know-why, optimization and
improvement of products/process/system. Such .efforts involve design
investigation, alternative raw materials or components, modification to suit local
conditions (company) etc. Successfully projects in these areas will lead to
. technology absorption capabilities.
The extent of absorption of technology by the recipient organization

I
"' is a true measure of the actual. transfer of technology. The transferred technology
should be learned and consolidated into the local systems where required. Proper
assimilation of imported technology derives maximum benefits from the transfer.
BENEFITS :
Some benefits of proper technology transfer absorption and assimilation
are:
•
Once a technology is properly absorbed it could be utilised to generate
revenue by re-exporting the products generated by it .eg: Previously Japan
had to purchase the technology that converts iron ore into steel form other
"
countries. After absorbing the technology Japan imported it through R&D
ii and it started exporting the steel.
• Any proper technology absorption ultimately leads to the production of
quality goods at cheaper prices.
• It also leads to the increase in profit in a company' s perspective and
development of economy in country's perspective.
• It leads to the opening of new markets and paves the way i n novation of new
products and better services to consumer.
•
Repeated collaborations for the same product/process can be avoided.
• Know-Why and technology up gradation capabilities are built-up.
"
'
)
'\
.,
TECHNOLOGY DIFFUSSION
The success of technological innovation depends on diffusion of the

i nnovation to those who can make use of it. The term diffusion refers to the spread
of new ides from the time of its invention of creation to its u lti mate adoption by an
increasing number of user, i n different circumstances.
Diffusion is the process of closing the gap between what people do not
know and what they can effectively put to use. The process is complete when:-
•
A s u ffic i ent nu mber of customer of customers arc using the innovation to
pay back the amount used to develop it.
•
It starts to make profits .
•
A system i s i n pl ace for accessing the changes to ensure longevity of the
technology.
PRESPECTIVES O F DIFFUSSION
There are several perspectives on diffusion, some of which are discussed below.
1. T ra d i ti onal perspective:
This view treats diffusion as the marketing efforts required to expand the
acceptance of the technology beyond the markets initially targeted. This
limited orientation does not allow the employees from u n derstanding how each
stage of technological development influence the diffusion process.
2. Adoption perspective:
The adoption perspective is most often used to describe the diffusion
process. This perspective focuses on how the various channels and modes of
communication ( med i a , i n terpersonal) can be used to i nfluence a diverse group of
poten tial cu stomc(s to adopt a technological innovation. Thus issue includes how
bes t to prepare the message about the innovation, how to select proper media mix
and h o w to get feedback from the customers of the technology.
3. Tech n o l o gica l perspective:

This perspective focuses on the technical skills & tools required to
i mplement/use the technological innovation. It also includes how well the provider
of technology understands the environment of the user and users ability to apply
the technology.

:t.
L
4. Infrastructure perspective:
·
The infrastructure of the region in which the technological
innovation is targeted is an important factor in diffusing of innovation.
Infrastructure that affects diffusion includes transportation, terrain, whether
communication etc. Poor i nfrastructure development can constrain same
innovations.
Regulatory/Societal Persp eetive:
This perspective looks at the effects of different govt. policies, regulatory

requirements, and beauracrative process, and the development stage in the area i n
which technology i s to be used. Regulatory requirements effect the ability of
potential customers to adopt innovations as well as the ability of a diffusing
company t compete with other companies. Companies may not want to enter those
countries that do not offer e11ough copyright protection to their technologies.
Comprehensive perspective:
This perspective uses all the perspectives discussed so far i n developing a

diffusion strategy. It views the diffusion process as a part of a total innovation ·
process. Each person involved in the innovation must maintain an interest in it for
· a much longer time rather than just developing the technology.
CONSTRAINTS OF TECHNOLOGY ABSORPTION:

Issues involved in technology transfer and the concerns of the local industries are
more or less universal. Recipients from developing countries are concerned that
they receive the latest technology; their experience shows that FD! (foreign direct
investment} does not automatically bring in advanced technology.
,
The Confederation of Indian industries (CD) had expressed similar concerns
, over the tendency of MNCs to dump obsolete machinery and technology phased
out in their home cou ntries. Their strategy to enter India . through the automatic
, approval route of the joint venture formation, establish themselves with the
'
support of local partner companies and eventually buy them out has been
strongly criticized by employers' federations. Another unethical and harmful
business practice of MNCs which is widely condemned by business houses is
setting u p wholly owned subsidiaries in the same product line as the joint
ventures.

TRAINING: Training is an all pervasive term encompassing different planes
simultaneously in a single organization. It could mean an orientation course for
fresh recruits or a skill up gradation program for old employees. Training is also
imparted for obtaining cross functional s k i l l s i n different organizational
activities. Training as part of technology transfer has unique relevance to
technology assimilation, ideally, in joint venture
businesses, such training promotes the interests of both the partners. While the
buyer of technology sees it as the quickest and the most direct way of learning a
new technology, its seller ensures that the former pµts it in operation in a perfect
manner. The ultimate objective of both is one and the same - to market the
product competitively and make a profit. During this process an MNC has to
protect its market i mage and ensure that the quality of goods manufactured
through a joint venture business is in no way inferior to .that in the country of
orig i n .
These objectives would then-demand trust and transparency i n give and take of
knowledge i n an open atmosphere. Unfortunately, many of the respondent
companies did not appear to have a very satisfactory experience of training.
Problems appear to have been reported in:
Devising a tra in i ng
program
Selection of trainees
•
Tin-Ung of training
•
Place of training
•
Training in quality
Real trainers
Constraints in technology absorption :--( in India)
Some major constraints i n absorption of technology in Indian perspective are:
•
Ch oi ce and use of imported technology by most Indian industries have not
been at international levels. This is an i mportant factor while establishing
high technology industries.
•
The demand of products in our country whose production is influenced by
latest technologies is not very large. This constraint increases the gaps to be
bridged through technology absorption. Industry would not be in a position
either to i n vest similar R&D resources in comparison with international
units, or even to improve products and processes.
•
In general, industry has not given adequate attention to absorption of
technology. In such cases, the firms have usually approached the
collaborators once again for renewal of earlier agreements or for new
collaborations for new products or process.
Osmania Uni versity MBA (Technology Management)-2003-2005--TTM

TECHNOLOGY IMPORT IN IND IA
Duril)g the initial years of development after independence, the Indian
technology policy discouraged foreign collaborations. Consequently, the
government policy towards ii11port of technology was very selective. The
government favored technology transfer agreements where there was exprn1
orientation or i mport substitution, especially in the high technology areas. The
agreements which enabled local industry to upgrade its existing technology were
also selectively approved. With the objective of ensuring the implementation
•• of its policies, the government laid down the following guidelines regarding
technology transfer:
1•.
) •
Indian companies will first explore alternative sources of technology and
give a detailed reasoning for selecting a pa11icular technology
•
There will be. no restrictive clause regarding sub-licensing of know-how
to other parties.
•
There will be no restrictions regardi ng procurement of capital goods,
spares, raw materials, pricing, selling ammgements, etc.
•
No restrictions will be placed except where the collaborator has a sub
licensing arrangement
•
There will be prohibition on the use of foreign brand names for products
in the domestic market
•
The training of Indian personnel will be a part of the agreement
•
There will be certain restrictions on the hiring of foreign consultants
Normally, the agreements were approved for a period of five years with royalty
,
payments ranging between 3 and 5 per cent. Most of t eh technology transfer
agreements prior to 1991 were of the licensing type or for outright 'purchase of
technology. An analysis of sector wise distribution of technology transfer payments
approved in the period 1 9 8 1 - 89 indicates that the chemicals sector accounted for
36 per cent of the total technology payments approved for all the sectors. The figures
for the total number of foreign collaborations approved during the period 1 9 8 1 - 89,
were nearly static, ranging between 700 to 1000 collaborations per year. The major
collaborators were from the USA, Germany, The UK and Japan.
Prior to liberalization in 199 1 the government had not played a facilitative role in
foreign collaborations and technology transfer; it had instead, primarily been one of
exercising control. There had also been delays in getting approvals, sometimes
exceeding five years. In the case of public enterprises, there had been instances
where the Indian government tried to dictate its terms to foreign collaborators. Since
199 1 , there have been major changes in the policies related to collaborations and
technology transfers. A number of restrictions concerning import of technology have
'
) Osmania University MBA (Technology Mariagement)-2003-2005--TTM
been removed. Collaborators can now invest up to 51 per cent of the equity and are
allowed the use of foreign brand names. These changes have resulted in an increase
in foreign collaboration including collaborations with foreign equity.
W i t h the opening up of the economy, many large M NCs have taken advantage of
the new policies and are entering into agreements with Indian companies. Owing
to the low level of technology, some Indian companies are finding it difficult to
face the competition with the multinational corporations who obviously, stand to
gain more. Some of the examples are agreements between Coca cola and the
Parle group, Levers with Tata chemicals, Maruti and Suzuki etc. These alliances
are mainly to tap the large domestic consu111er market in India rather than to
focus on exports. However, this is being done deliberately by the government to
force Indian manufacturers to upgrade the quality of their products and meet
co 111 petition.
TECHNOLOGY ASSESSMENT AND EVALUATION
TA deals with assessment of technology on a wider canvass

than the immediate concerns of the firm. It covers direct and indirect effect and
consequences of introduction and use of technology. Technology Evaluation seeks
to evaluate, i n relations a firm or an organization, technical or economic or
environmental benefits, that affects the organization TA can be considered more a
macro level exercise where as TE is more a micro level exercise. A is usually
undertaken prior to introduction of technology, while ties developed prior to the
development acquisition or adoption of technology.
Technology Assessment:
The definition of technology assessment according to the US Congressional

Research Service is:
Technology Assessment is the process of taking a purposeful look
at the consequences of technological change. It includes primary cost/benefit,
balance of short-term localized market place economics. It is neutral and
objective, seeking to enrich the information for management decisions. Both good
and bad side effects in company's and societal perspectives are investigated.
Methodology of technology assessment:
Assessment is a very vast subject and there are many complexities of

the issues involved. In the present context, TA is defined to include both major
stages of application and management of TA exercise.

\
Stages in TA process:
Several well known authors on the subject have listed what are
considered as key stages in the TA process. A brief explanation of the various·
stages is given below.
I. Problem definition: This involves proper specification of the problem to

be studied and establishing its limits. The questions that are to be
answered are
a) For whom or what purpose is the study being done?
b) Who are the targets?
c) Over what time horizons should the problem bt': studied?
d) What is the geographic coverage?
jl'., e) The range of technological options to be covered?
f) What affect does the project have on society?
It is important to understand that this stage is not a one time process, but
this process should be repeated again and again as the study progresses.
2. . Technology description/ forecast: The three main elements of

technology
descriptions are :
a) Establishing the boundary of technology per se.

b) Data regarding the technology should be required.
• c) Technology forecast.
This basically involves defines the current state of the art of technology and
projecting it in to future thinking of alternative paths for the technology.
if
3. Social description I factors: It is very important to d�scribe the technology
in
terms of how it effects the society. The various ways of describing the society
are :
a) The state and stability of society ( war, political stability etc)

b) Macro indicators such as characters of economy income and its growth,
and demographics of the population.
c) Specific descriptions of aspects such as percentage of children in the
population, percentage of people in a certain group of income, literacy etc.
-·
Social forecasting is difficult and complex and there are very few models
could be advantageously used.
Osmania Uni versity MBA (Technology Managernent)-2003-2005--TTM
5u
),
4. Impact evaluation : It consists in identifying , analyzing and evaluating the
i mpacts of the specific technology. It also i n volves performing com pa rat i ve
evaluation of technological alternatives using broad - based criteria such as social,
c u l tural and political e n v i ronments. Each impact should be carefu l l y studied and a
short -list of impacts should be pointed out.
5. Policy Analysis : This p o l i c y analysis

consists of two levels, first level deals
with specific policy options. The four s teps i nv o l ved i n i t are :
a) Form u l a t i n g feasible pol ic y option.

b) Listing and c o mpari n g d iffere n t i m pa c ts .
c) S y nth e s i z i n g the best or opt i m al p o li c y .
cl) Presentation of a s u mmary comparison of the selected optimal policy
TECHNOLOGY EVALUATION
Auditing is a to evaluate the conditions or the existing status of certain

tool u se d
s ec tor in an organization. A cco u n ta n ts often use it to evaluate the financial status
of companies. The American Accounting Association defines i t as "a systematic
process of o bjectively obtaining and evaluating evidence regarding assertions
about economic activities and events to ascertain the degree of correspondence
between those assertions and established criteria and communicating results to
interested users". Financial audits conducted yearly companies, and the results are
r ep orted to the stock holders.
A Technology Audit is an analysis performed to identify the strengths and

weaknesses of the technological assets of an organization. Its aim is to assess the
firm's position in t ec h n o log y in relation to its competitors and the state of the art .
This applies to technologies of the entire value-added functions in the firm,
i n cl u d i n g producr technology, production tec h n ology , service tech n ology , and
marke t i n g technology. The obj e c tive is to develop base upon w h i c h tec h n o l o g y
strategy and associated plans can be formulated. The technology audit is a
continuous process of assessment, unlike some accounting audits, which typically
are performed o n a one-time basis or at a specific date, such as at the end of the
year.
Gacria-Arreola developed a Technology Audit Model(TAM) that includes import

.
ant areas to c o ns id ered
in a technology audit. The objectives of TAM are:
1 . To determine c u r re nt t ec h nolo gical s tatu s
2. To stress areas of opportu nities
3. To take advantages of firm's stro n g cap ab i li t i es

TAM is a three level model, with each level going deeper into more specific
functions. The upper level is composed of six categories. at the second level, 20
assessment areas exist. Finally, 43 assessment elements constitute the third level.
TAM assesses company's position in technology. The model is based on following
·
six categories :
I. Technological environment
2. Technologies categorization
3. Markets and competitors
4. Innovation process
5. Value added functions
6. Acquisition and exploitation of technology
A technology auditor should do the following :

•
Analyse the firm's internal technology to identify core competency
• Identify external and basic technology
• Identify 'technology gaps' i.e. si tuations where new technologies
should be brought
•
Review technology push/market pull
• Review R&D strategy
• Check for consistency between core technologies, R&D and
marketing
•
Look for evidence of continuous i mprovement in manufacturing
• Review technology transfer procedures
• Analyse corporate structure
TAM and other related technology auditing processes serve as valuable tool for
companies i n a number of ways :
•
As a diagnostic tool for determining strengths and weaknesses
• As a method of identifying and targeting key opportu n ities for
improvement
•
As a tool for benchmarking with competitors
•
As a tool for continuous improvement
•
As a self-assess ment instrument leading to proper technology planning

DIFFUSION
Diffusion is the process by which an innovation is propagated through certain
channels over time among the un its of a system.
There are four ma. ior e l ements in the preceding definition: ( 1 ) Innovation,
( 2 J l'ropagation through channels (3) Time and (4) Units of a social system.
I N N O V A T I O N : From the point of view of a customer, a techni cal

I.
solution is considered to be an innovation when it is new or perceived as
new by the individual or the unit of adoption. It really matters little, so
fa r as h u m an b e h a v i o r is c o n cerned, whether or n ot an idea is
" o bj e c t i v e l y new as measured by the lapse of time since its use or
di scovery."
2 . PROPAGATION: Propagation refers to the spread of an innovation
beyond its inventor. Propagation is the result of a decision to adopt an
i n n ovation by an i nd i v i dual or a firm. An i n n ovation presents an
uncertain situation to an adopter, and hence the decision to adopt is to
some extent influenced b y the communication processes between the
adopter and individual who has innovated.
3. TIME: The time dimension is involved in diffusion, because it takes
time for individuals or firms to decide to adopt an i nnovation. Not all
adopters adopt an i nnovation at the same time.
4. SYSTEM: A system is a set of interlinked units that participate in the
diffusion process. The members of units of a system may be individuals,
informal groups, or organizations.
The term diffusion is used restrictively i n this defi n ition; it refers only to
adoption but not to imitation.
\We recall your attention to the distinction between diffusion and imitation;
Competitors deciding to copy the innovatiqn and make their own products to compete
with the innovating .firms is referred to as imitation. Diffusion refers to the technology
/eve/ dv11a111ics arising from the adoption decision that are part of the problem
solving. We reproduce the schematic representation in the.following.figure].
SUPPLY S I D E
(competitors)
�MIATION I
[INNOVATION I�
. ---- I ADOPTION l1-.----
0 s rn a 1 1 1 a "
L! n .l vers1ty
. MBA (Technology M anagem•
DEMAND SIDE
(consumers)
53
Thus, when a firm imJovates (e.g. develops a new product), two different groups of
players respond ro the innovation. One group, the customers, makes decisions to adopt
or not to adopt the innovation. Diffusion refers to adoption decisions of this kind. A
second group of players, competitors, may decide to copy the innovation and make
their own products to compete with the innovating firm. We will refer to this as
imitation. Thus, imitation i s a supply-side of concept: It refers to firms that sell
products or services. Unlike imitation, diffusion is a demand-side concept: Tt refers to
consu mers who buy products and services.
Innovations propagate through a population of consumers in the market over time.

Not all individuals or firms comprising the market adopt an innovation at the same
time rather, they adopt sequentially over time. This is what we mean by the
dynamics of diffusion. Although each innovation diffuses in somewhat unique
fashion, there are general characteristics of the dynamics of diffusion.
We summarize three major characte1istics of the dynamics of diffusion:

( I ) The S-curve of diffusion
(2) Reinvention during diffusion and ,
(3) · Mechanisms of diffusion.
1.S-CURVE OF DIFFUSION: Cumulative number of adopters over time

djsplays an S-shaped curve where as frequency of adoption follows a bell shaped
curve.
There are four major eras in the diffusion history of an innovation:
l. Emergence c haracterized by a slow advance in the beginning,
suggesting that adoption proceeds slowly at first when there are
few adopters.
)
' 2. A rapid growth phase, when adoption rate accelerates until half
'
.,
of the individuals in the system have adopted
I 3. A slow growth phase, where the rate of growth declines, but
adoption continues.
4. Maturity, the final stage, where the diffusion almost comes to a
halt, either as a result of market saturation or the introduction of
a new product, process or service into the market that replaces
the existing innovation.
2.REINVENTION: Many innovations change over the course of their diffusion

history. Reinvention refers to the dynamics by which an innovation is changed or
modified by the users as they adopt and use it. There are four ways in which
reinvention occurs during diffusion:
l. The increasing use of innovation often hinges upon improvement in its
functional aspects. Changes in the design and performance
·
characteristics of an innovation are a prerequisite for its further adoption
beyond those who have already adopted.

2. As innovation diffuses through a consumer · population, a standard model
of the product emerges.
3. The widespread diffusion of certain i nno vat ion s often requ ires
development of comple men tary products.
4. I n certain i n stances, changes i n an innovation make possible new
appl ications, th ereby fac i l i tating its adoption beyond the originally
conceived scope of its ap pl i cati on .
3. MECHANISMS O F D I FFUSION: Mecha n i s m s by which innovation

Propagates thro ug h an adopter population are:
1 . Technology Substitution 2 . B andw a go n effec t
Technology substitution refers to the act.ual substitution of a new technique for the
old. Many times, a n e w tec h nolo gy or an innovation displaces an already existing
technique o r tec hn ol og y d u ri ng the proc ess being adopted . Bandwagon effect
focuses on the dynamic by which later adopters, in their decision to adopt an
innovation, imitate the behavior of earlier ad opters .
Cumulative number
of adoptions
Number of
customers
Frequency
---...
___... of adoption
TIME
Factors that drive the process of diffusion

In addition to the characteristics of individual adopters, three sets of factors influence
the decisions of ad opters over the diffusion history of an innovation or technology:
1. Attributes of an innovation or techn ology .
2. Community effects and network externalities and
3. Characteristics of the population through which
d i ffu s i o n o c c u r s .
Osmania University M B A (Tec hn olo gy Management)-2003-2005--TTM

ATTRIBUTES : Five attributes of an innovation influence the process of
diffusion:
I. Relative advantage is the degree to which an innovation is perceived as
better than the idea it precedes.
2. Compatibility is the degree to which an innovation is perceived as being
consistent with existing values or past experiences and needs of potential
adopters
3. Complexity is the degree to which an innovation is perceived as being
difficult to understand and use.
4. Trialability is the degree to which an innovation may be experi mented
with on a limited basis.
5. Observability is the degree to which the results of an innovation are
" available to others.
I
COMMUNITY EFFECTS : Community adoption levels may affect the i nherent

value and risks of adoption of any class of innovations. Many innovations are
associated with increasing returns to adoption or positive network externalities.
This means that the benefits of adopting an innovation largely depend on the
community of other adopters. This is true for telephones, fax machines and even
Microsoft' s o perating system. I ncreasing returns toadoption may ensue from
learning by using positive externalities and technological interrelatedness.
Positive externalities means that the immediate benefits of use are a direct function
of the number of current adopters. The use of telephone or fax enjoys positive
externalities. Technology interrelatedness refers to the compatibility of products
needed to make the technology worthwhile as a whole; for example a computer
modem compatible with M icrosoft operating system opens out that operating system
users as a market.
•
Four major factors drive conununity effects: a) Prior technology drag
b) Irreversibility of investments
c) Sponsorship
,
d) Expectations
CHARACTERISTICS OF THE POPULATION : Because an innovation

permeates a system, the structure .of the system accepts an influence on the d i ffusion
process. Of particular i mportance are three facet of the system:
I . Communications
'· 2. Opinion leaders
3 . Cultural norms

Communications can be informal like word of mouth or formal through mass media.
Opinion leaders are those who have the abil i ty to stimulate a following for their
actions i n the'comrnu nity. The first step is the adoption by the opinion leader and the
next is the adoption by the rest of the followers.
C u l tural n orms s erve as a guide for the individuals and are typified by opinion
leaders. Norms may i mpede or speed up d i ffu s i on
Osmania U n i vers i t y MBA (Technology Management)-2003-2005--TTM

UNIT - V
• Implementing technology
• Technology development projects
l.
• Developed technology projects
\
• Problems in implementing of technology �· · ·
• Project organization \_..-�--�-
• Parallel implen1enta tion

• Change management**
• Human issues connected with implementing new
technologies**
• Mind set change preparing work force for ne'w
and changing technologies process and
methodologies**

UNIT Y
I M PLEMINTING TECHNOLOGY
Tec h no l og y a c q u i s i tion i s th<:

process of taki ng ownership of the technology. Once
a company owns a te c h nology it must implement it or insert it into an application
,
w i t h i n the company in order to benefit from technology.

I mp l e m e n t i n g tec h no l o gy is fundamentally a technology
transfer proc ess It starts with the transfer of technology from external or internal
.
s o u rc e s to those responsible for research and development . There should be proper

interaction between R&D people and those who use the technology once it is
read y The res earc h es shou.ld explain to the users how the technology is applied in
.
the processes. The i nstallers (R&D) and users must think about the technology,
how 1 0 u s e and maintain it properly.
Implementing technology involves financial commitment. The
amou n t invested in i mplementation increases as the time goes by. Implementation
activities need to be structured in such a way that the amount at stake increases
and u nc ert a i nt y involved i n the technology decreases.
Implementation of technology involves the following areas

• Design of technology implementation projects
• Implementation problems
• Parallel implementation and
6' Change n1a n agen1ent
Technology implementation projects fall into two broad categories depending

upon where the technology is developed.
• Technology development projects
• Development technology
Technology development projects include those technologies that

have been developed within the organization and are transferred internall y.
Developed project include acquiring already developed technologies
from the outside.
The fundamental differences between developing and developed
technology projects with respect to i mplementation are

Developed technology Development technology
( ! )creation process completed by ( I )both creation and implementation
some else. Only implementation within the organization.
is required. ·
(2)implemented by operational (2)development done by R&D people

people
(3)more straight forward with less (3)have a degree of uncertainties
uncertainties
�
TECHNOLOGY DEVELOPMENT PROJECTS
I
These projects are characterized by uncertainty. The developer's begin with a
collection of known information and a goal. The project should convert unknowns
· into knowns. The project must be structured in such a way that uncertainty is
driven out and those responsible for the development of the project can take
decisions. The project is divided into seven stages by DR .Cooper(stage-gate
process).
• Idea
• Preliminary assessment
• Concept
• Development
• Testing
• Trial
• Launch
The first stage consists of idea generation. The idea can come through market need
or a technological breakthrough that may benefit the company. Initial screening of
the idea by management, against the company goals will lead to selecting or
discarding the ideas.
The next stage preliminary assessment, is done from both technical and market
perspective. A description of products and a rough estimate of the money to be
spent and time needed to achieve technology goals and likelihood of success is
made. This information is presented to management for decision.
In . the concept stage, conceptual descriptions of the ultimate products are

developed from market and technical prospective. Some hypothesis and
experiments are designed and conducted to prove or disprove the theories behind
the technology being developed. These concepts ,and the results are submitted to
the management for approval or disapproval. If the project survives this stage i t
· moves to the development stage. Here full fledged product o r process development
activities are conducted. On the technical side, engineering design is done and
b()
prototypes are generated. On the marketing side, marketing plan is developed.
M a n a ge men t reviews the results of prototypes and marketing plan and take a
GO/GO-NO decision.
The product(s) that are the results of ne w technology have reached a stage where
they can be thoroughly tested. These tests may bring into light the facts that can
lead to further development or complete death of the product. The trial phase
produces small qu a n tities of the product and sold to the customers. The market
acceptance and the problems encountered in the trial production from the input for
last evaluation point. M anagemen t, after being supplied with an estimate of the
cost and time to address the issues, can decide to return the project to an earlier
stage for further development or signals for the launch of the product.
DEVE LOPED TECHNOLOGY PROJECTS
Implementing developed technology has a lot in common with implementing

developing technology products. Both the projects have a distinct beginning and
an end. The project needs a plan with a schedule and clear GO/NO-GO decision
po i nts , project t<:n ms, and wi.\11-laid out res p on s ibi liti es .
The areas of difference have more to do with people and circumstances than with
the process itself. Developed technology implementation projects have less
technical uncertainty and more people u ncertainty. This is because the project has
to be done by operational people rather than development people. Operational
people h a ve less experiem;e and are not co mfortab le with uncertainty. In addition
to that people i mplementing developed technology have to cope with day-to-day
business while preparing for the transition to the new technology they have to do
two jobs.
The key for its success are developing a project plan by using a checklist and
documenting the project pl an by developing and writing down the details
associated with each item in the checklist. A number of tools also help successful
i 111ple111cntation of projects. Some of them are
• F l o w charts
• Project milestone status report
•
Gnatt charts
•
Complex network diagrams
•
S-curve
• Work breakdown structure
• Project team meetings
• Communication to the rest of organization
Osmania U n i versity MBA (Technology Management)-2003-2005--TTM

Flow charts illustrates the flow of work from the beginning of the p roj ec t until its
completion. It consists o f boxes containing words describing each step or
activities connected by arrows to demonstrate the work flow.
Project milestone status report puts a start and end date on each step. Milestone
status report records actual completion dates which provide feedback to the
project planners and management.
Gnatt charts illustrates the information in the milestone status report. It consists
of the list of project steps on vertical axis and the time on horizontal axis. They
also show starting and ending points planned and actually experienced at each
step. Gnatt chart can be enhanced by adding S-curves. These S-curves i llustrate
the planned expenses throughout the project in percentage terms. Gnatt charts
also slow inter connections hetween steps in the form of a flow chart.
Work breakdown structure shows the roles of each participating depaitment i n

each step. This shows what is each groups role in the project.
Project team meetings should be attended by people from many discipl ines of the
organization. It should include those involved in R & D, those who maintain the
technology and those who use the technology. The main purpose of the meetings
is to keep abreast of the happenings in the project. Project management tools like
milestone status report, gnatt chart, S-curve, complex diagrams are updated and
:--..
. '
"
presented in the meetings. Problems encountered are discussed and decisions are
made.
The communication regarding the new technology s h ou l d start long before the
work begins. The new technology should nor surprise anyone in the o rgan i z ation .
People must see t h e technology as an instrument for sustaining competitive
advantage rather than a threat.
PROBLEMS IN IMPLEMINTATION OF TECHNOLOGY

Technology imp l eme n t a t io n is filled with problems. But the potential benefits of
the technology itself and the efforts of researches make companies always try out
with new technologies. Also, the needs of the user can p ro vi de a market pull.
However the pull should have enough strength to break the barriers of technology
transfer.
Technology project implementation problems vary depending on whether the

project is to implement a d eveloping or a developed project. Some of the common
problems for both include

• Lack of appropriate measures
• Poor communications and
• S l i pping schedule
Probl ems in implementing technology development proj ect
• Lack of understanding costs, risks benefits

• Lack of understanding application
• Com �unications
• Management commitment
• Slipping schedule
Lack of understanding costs, risks benefits
Generally researchers do not tend to think about the costs or benefits of the
project. They are motivated by new discoveries that will come ou t of their work.
In the process, they do not think about the expenses and revenue aspects.
Managers, on the other hand, want the resul t of R&D within the stipulated amount
of money. Both managers and researchers thus have conflicting ideas with respect
technology development and implementation. The first step in dealing with these
problems is that whenever such a problem is encountered by researchers, it should
be i n formed to managers ancl vice-versa.
Lack of understanding application
It is i mportant for the researchers to know about the application of technology in

real l i fe, before the development process begins.in most of the cases researchers
are restricted to offices or labs thinking only about the technology rather than its
application. However companies are more focused on the application and amking
·
profits rather than technology.
To solve this problem, researchers should be brought to the floor of the plant and
should be made to work along with application person. This allows the researchers
to have a practical perspective. Sometimes application person will not understand
the potential benefits of the potential technology. This problem should be lessened
by i mproving two-way communication.
63
Lack of appropriate measures of progress result in projects that run on and on.
Part of the problems is a lack of understanding of project's goals, not knowing

what to measure. The main cause of this problem is because of cultural mismatch
between R&D and management. R&D people are mostly interested in science and
development where as management is concerned with financial viability of the
project. Communication between both the parties and respecting each others
obligations eliminates the problem to a large extent.
Communication problems can be caused by developers, who will not
communicate the poor progress/ potential project killing problems to the
management. The problem can also lie with the management not much i nterested
in developers. Either of these can lead to the fai lure of the project. If an
atmosphere of trust and mutual understanding is created, this problem is solved to
the maximum extent.
Lack of commitment from the management side is mostly seen in smaller

· organizations. This is because managers find it difficult to spend money in
technology development that will have no i mmediate returns. The managers
should be informed about the best case and worst case scenarios and the benefits
of the projects should be explained so that a correct decision can be made whether
to follow up with the project or not. Technology development projects usually get
· behind schedule. This is because development is not straightforward, as it seems.
The only solution for this is to prepare a tight schedule and budget and extend it
little b i t in case the project is not completed in the stipulated time.
Problems in implementing developed technology project

• Resistance to change
• Logistics
•
;
�.
• Inadequate resources
• Communications
• Pre occupied with existing operations
f
• Slipping schedule
Resistance to change:-
This i s one of the biggest problems encountered while implementing a technology.
All the money invested in the technology may go waste if the ultimate users
sabotage the project while implementing it. The main reason is the fear of loosing
the job. To overcome this problem the ultimate users of technology shou Id be
involved in decision making at the time of implementation. The users should also
. be trained on value benefits from the use of technology.
'·
Osmania Uni versity MBA (Technology Managemem)-2003-2005--TTM
)
Logistics
Logistical problems i .e. unavailability of resources when needed, are generally the
resu lt of poor planning. The company should know everything that is needed for
the implementation. It should identify suppliers and find out delivery times for
various components. This information is used i n the creation of project schedule.
Some logistical problems are out of company's control. Ex: when a supplier fails
to deliver the components on the promised date. In such a s ituation a contingency
.
plan should be developed which consists of alternative activities for project
i mplcmcntation .
Inadequate resou rces

This is a result of poor planning. The implementation team should have the full list ·
of the things to be and the associated costs. Quotations for the equipment should
be acquired. Care should be taken that nothing is missed out but the management
should set aside some budget for contingencies. The project should not be started
unless there is money complete it. If the implementation project is draining all the
cash to the point that it cannot continue operating, the project must be stopped.
Lack of approp riate measures of progress

lt has two components:
• Not knowing what to measure is related to the planning process. Those who
have good job of planning along with Gnatt charts, will know better what to
me0sure. They will know the expenrliturns anrl the time it is going to take for
impkllle11ting tbt: projects.
• Not taking measurements: some times measuring a p articular aspect in the
i m plementation is completely left out. This can be because of improper
planning. Perhaps the plan did not identify who was responsible for the task
and therefore no one is doing it. It can also happen because of lack of
commitment to the project.
C o m m u n icati o n : -
A s for tech nology development projects, good communications are essential'. All
barriers to communication must be overcome. A communication plan will outline
what wil l be told to whom, when and by whom. Poor communication may cause
resistance to change and can cause team members do the wrong things or leave out
necessary activities.
PROJECT ORGANISATION
The role of project manager is an absolutely critical component for success of any
technology implementation project. Good project managers should be strong in
th rce areas:
bS
1. They must be good managers
2. They must handle multiple demands and pressures
3. They must have good understanding of technology
Project manager' s role should begin even before the project starts. He/she should
be given authority and responsibility for the project and freedom to take
operational decisions that affect the outcome of . the project. He /she should
participate in the development of the project plan and its budget. Manager should
be responsible for the project once the project starts.
For the successful organization of project implementation the project managers
should focus on the following areas:
• Project team structure has a significant impact on the project ' s success. A core
team has to be assigned for the life of the project and each team member
should span several fu nctional areas. It is not a good idea to have i n formal
teams.
• Giving the project team clear responsibility and making it accountable is
another i mpoltant aspect of organizing a project. The senior manager should
have ultimate authority on the team.
•
The team members should have sound technical knowledge. The team leaders
should have technical, people, as well as administrative skills.
l:
•
Team members' responsibilities should be clearly defined for smooth working
relationship. When the members' roles are not defined, it results in confusion
and conflicts.
•
B ui lding a teamwork is also one of the important duties of the project
manager. Each member's achievements should be recognized. Project leaders
should s'tress on developing relationships by meeting the members of the team
informally in coffee room etc.
• Good project management consists of good planning and control of activities.
Planning has Jot to do with what is going to happen where as control is largely
reactive.
PARALLEL IMPLEMENTATION
The traditional approach to technology development is linear. The idea starts w i th
marketing team or by a technological breakthrough. It is then passed to product
development group . Then the manufacturing group takers over creating tooling
and adjusting the product design so that it is easier to manufacture .Then the
product i s passed as to distribution, which develops a distribution methodology for
the product. Finally sales group takes over and implements sales strategy. This
process is called pass-t h e-batou because responsibility moves from one group after
the other.

This approach is also known as over-the - wall approach as the· product i s thrown
over the wall to the next group. This prevents communication between the groups.
Every group has complains about what the p re vi ou s group I groups have done.
Eac h group removed some features from the product that seemed not necessary.
As a result of this the product had less features at the end than w he n compared to
t he begi nning of the idea conceptualization.
CONCEPT
,MANUFACTURJNG
DISTRIBUTION
SALE
LINEAR APPROACH
Another problem with the linear approach is the cost. First, the cost of design
changes. It problems are d iscovered while the product is still in development,
design change leads to some cost. The same is the case in all the stages. Because
of this the cost of production increases dramatically by the time final product is
ready for sale.
Para l lel i mple ment a tio n addresses the shortcomings "over- the - wall" approach of
technology i mplementation. This method has the following advantages.
• Reduced ti me to market.
• Distinctive new product
•
Higher q u al i ty of prod u c ts
• Fewer engineering I manufacturing problems
• Reduced manufacturing costs
•
Increased return on assets.
Parallel i mplementation focuses the most on concurrent engineering. First, many

criterions of market assessment and initial technologies are done even before
product development process begins. Second, all key players work together from
the beg inni n g . These people interact frequently thus i deas are shaded, criticized

modified and refined till the design emerges out to be the best. Third, active
. coordination keep group's interaction continuous throughout the project.
I
Product d e s i gn 1
Market research
Process en�.ineeri ng
Manufa¢turing set - up IC::) Customer

Technology
acquisition
M ark9i ing sales & distribution
,/
//
Parallel implementation · promis �to address the problems of tradition al
approach. Once the market ;investigation or technology acquisition is
.-� completed, the product conci;>p t and designing of product begin in parellel.
Manufacturing begins the fa¢'ilities to manufacture and marketing, sales begin
,
the design of sales and di,Stribution system. Parallel i mplementation is also
followed in each area ind1 endently. p
!
Benefits: / Percent
I
!
Development time . · · 30 - 70 less

Engineering changes 65 - 90 fewer
Time to market 20 - 90 less
/
Over all quality 200 - 600 higher
r
,
Sales I 5 - 50 higher
Return on a ets 20 - 1 20 higher
One of the efficient ways of processing parallel implementation is through

multinational groups. A multinational team i ncludes experts from al areas of
company ( design, testing, manufacturing, purchasing, marketing sales etc.)
and some outsiders such as vendors and customers. Each contributes to the
design or technology i mplementation. Each learns from the others and each
works to achieve a common goal.
The key to parallel implementation success is frequent meetings and

simultaneous data sharing. Every one is regularly and frequently updated.
Osmania University MBA (Technology Managemen!)-2003-2005--TTM

Code No . 2 1 0 2
OSMANIA UNIVERS I TY
UNIVERSITY COLLEGE OF COMMERCE & BUSINESS MANAGEMENT
(AUTONOMOUS)
FACULTY OF MANAGEMENT
M . B . A . ( T e ch . Mg t . ) / P.G.D. ( TM) I I - S emes ter Examination
January-2003
S·ubj e c t : Technology Transfer Management Paper : 2.2
TfME: 3 Hours Max. Marks: JOO
PART - A (IO x 2 = 20 Marks)

1V /J. : A n.nvcr all the .questions. Each question carries 2 marks.
1. \Vrite short notes on the following in not more than 80 words each.
;i) lnternal Technology Transfer
b) Technology Transfer Process
c) Assessment of Innovation
d) Strategic Partneri ng
e) Technology Transfer for SME's
f) Technology Transfer Discussion
g) Technology absorption at unit level
h) Technology Diffusion
i) C h ange Management
j) !n d ig eni sati on process
PM.I..:.!!. .(5 x 16 80 Marlm) =
NB.: An'1ver all the Five questions. Each question carries 16 marks.
0
L..
a) Define Tech nology Transfer and explain about various channels of Technology
Creation and Flow.
Or
b) Explain Taiwan Model of Technology Transfer and outline its main features.
. .
a) Explain the various methods available for assessment of a new technology.
Or
b) What are the various d imensio ns involved in Technology delivery process.
4
a) Outline the broad contents of a Technology Transfer agreement.
Or
b) What are the vario u s Technology Transfer Modes available ? Discuss about the
features and ad vantages of each mode.
'
R) What arc the various co nstrai nts in the process of Technology absorption ?. Discuss
with reference to Indian comp an ies .
Or
o) Write an essay on the state of Technology Imports into India in post-liberalization
phase.
6
a) Enumerate the various dimensions and probl ems faced 1n the ·context oC
i m p l ementation of Technology oriented projects.
Or
b) D iscuss about the human i ssues con nected with implementation o f new Tr:oe!moiony
u1 an organization.
Code No. 1202
,.. OSMANIA UNNERS ITY
• 'UNIVERSITY COLLEGE O F COMMERCE & BUSINESS MANAGEMENT
(AUTONOMOUS)
. FACULTY OF MANAGEMENT
M .B.A. (Tech nology Management) II - Semester Examinations
·
December - 2003.
Subject: Technology Transfer Management Paper: 2.2

TIME: 3 Hours Max. Marks: 1 00
PART - A( l O x 2 = 2 0 Marks)
N.B.: Answer all the questions. Each question carries 2 marks.
Answers to this question must be written at one place only.
1. Write short notes on the following in not more than 75 words each.
a) External Technology Transfer
b) Intra-firm Technology Transfer
c) Reengineering
d) Technological Matrices
e) Techno iogy Search
f) Technology D iffusion
g) Indigenisation of Technology
h) Technology Evaluation Process
ii Characteristics of Technology Projects
j) PERT
PART - B(S x 16 = 80 Marks)

�:.
,.
N.B.: Answer all the Five questions. Each question carries 16 marks.
2.
a) Define Technology Transfer and Discuss about Taiwanese Model of
Technology Transfer.
Or
b) Discuss about US policy on technology tran sfer from and into USA.
3.
@ Discuss about issues connected with technology transfer infavour of
small and medium sized companie s.
Or
b) What is strategic partnering? Explain the relevance of it for technology
transfer.
4.
a) What are the various modes of technology tnu1sfer available to J. large
multinational technology leader?
Or
b) What are the legal and procedural issues connected with technology
transfer from an organization to the other?
(
(
s.
a) Discuss about the policy and prospects relating to technology imports
into India in post liberalization period.
Or
b) Out line the process underlying technology absorption and indigenisation
at unit level.
6.
a) How does th e mindset of work force become a vital factor for technology
c h ange process? How do you truce care of resistance to technological
change?
Or
b) How is PERT suitable for handling technology oriented projects? Discuss
about the process underlying it.
* * *
......, /
/
I "
/
Code No. 1202

OSMANIA UNIVERSITY
UNIVERSITY COLLEGE OF COMMERCE & BUSINESS MANAGEMENT
(AUTONOMOUS)
M.B.A. (Technology Management) II - Semester Examinations
December - 2003.
Subject: Technology Transfer Management Paper: 2.2

TIME: 3 Hours Max. Marks: 100
PART - A( 10 x 2 = 20 Marks)
N.B.: Answer all the questions. Each question carries 2 marks.
Answers to this question must be written at one place only.
)
1 . Write short notes on the following in not more than 75 words each.
a) External Technology Transfer
b) Intra-firm Technology Transfer
c) Reengineefing
d) Technological Matrices
e) Technology Search
f) Technology Diffusion
g) Indigenisation of Technology
h) Technology Evaluation Process
i) Characteristics of Technology Projects
j) PERT
'
PART - B(S x 16 = 80 Marks)

N.B.: Answer all the Five questions. Each question carries 16 marks.
2.
a) Define Technology Transfer and Discuss about Taiwanese Model of
TechnolOgy Transfer.
Or
b) Discuss about US policy on technology transfer from and into USA.
3.
a) Discuss about issues connected with technolOgy transfer infavour of
small and medium sized companies.
Or
b) What is strategic partnering� Explain the relevance of it for technology
transfer.
4.
a) What are the various modes of technology transfer available to a large
multinational technology leader?
Or
b) What are the legal and procedural issues connected with technology
transfer from an organization to the other?
•
I
, ,- �- '
5.
a) Discuss about the policy and prospects relating to technology imports
into India in post liberalization period.
Or
b) Out line the process underlying technology absorption and indigenisation
at unit level.
6.
a) How does the mindset of work force become a vital factor for technology
change process? How do you take care of resistance to technological
change?
Or
b) How is PERT suitable for handling technology oriented projects? Discuss
about the process underlying it.
* * *
Code No. 6008
FA CULTY OF MANAGEMENT
M.B.A. (Technology Management) II - Semester Examination, January 2007
Subject : Technology Transfer Management
Course No. - (2.2)
Time : 3 Hours} {Max. Marks : 100

Note : Answer ALL questions.
PART - A (1 0 x 2 = 20 Marks)
1. Write short notes on the following in about 80 words each and at one
place only.
(a) Classification of Technology Transfer

(b) Internal Technology Transfer
(c) Reengineering and Technology Transfer
(d) Technology Transfer for small companies
(e) Technology Transfer Modes
(f) Agreement of Technology Transfer
(g) Technology Diffusion
(h) Technology Transfer at Unit Level
(i) Technology Development Projects
0) Project Organization
PART - B (5X16 = 80 Marks)
2.(a) Explain the. various channels of Technology Transfer with suitable

·
6"Aampie ·each.
OR
(b) Explain the criticality and role of technology transfer in propelling USA into
a superpower . Mention the key section of growth .
3.(a) Technology Agreement is an important aspect of effective technology

management. Elaborate this statement with a good case I example.
OR
(b) How is a Technological Audit conducted in an organization ? Discuss the
importance of strategic pcr'ft neYi'19 in present day scenario.
4.(a) Discuss how a technology search is done for a firm. How is technology
transfer and absorption implemented at unit level?
OR
(b) Out line the broad contents of a Technology Transfer Agreement. Discuss
procedural issues involved with an examples of Pharma or IT company.
5.(a) Elucidate on the relationship between technology absorption and diffusion.

Give an example of a Telecom I Banking and Retail Industry.
OR
(b) Write an essay on Technology Imports in India in post -liberalization
phase. Mention the key section for growth.
6.(a) What are the various dimensions , problems and challeng,es encountered
in implementing. technology projects ? Give your own industry example.
OR
(b) Discuss all the human related issues in technology implementation with a
suitable example.
*****
M . B.A. (Technology Management) II Semester Examination
August I September, 2004
Subject : Technology Transfer Management ·
Course No: 2.2
Time 3 Hours Max. Marks : 100

Note : Answer all questions.
Section A ( 1 Ox2=20 Marks)

-
1. Write short notes on the following in not more than 75 words each at one·
place.
a) . US National technology transfer mechanism "CRADA" .

.b) External technology transfer
c) Innovation process model of Edosoman
d) Technology classifications
e) Arbitration in technology transfer agreements
f) Obligations of licensor (seller)
g) Technology portfolio
h) Technology absorption
i) Technical know why
•
j) Diffusion
Section B (5x1 6=80 Marks)

-
Note : Answer all the FIVE questions. Each question carries. 1 6 marks.
2.(a) Define Technology Transfer. Explain channels of technol�gy flow in

intrafirm technology transfer processes. . . .
OR
(la) Explain the various methods of internal technology transfer !ilnd external
technology transfer.
3.(a) Explain the objectives of Technology Audit Model (TAM).
OR
(b) Discuss in detail the concepts of 'interaction of business' and technology
strategies.
4.(a) Discuss the different dimensions of technology transfer, the features and
routes of technology transfer with suitable examples.
OR
(b) Discuss various aspects such as technical, financial and legal of TT
agreements.
5.{a) Explain the process of management of technology absorption. What are

the benefits of technology absorption.
OR
(b) Discuss the importance, perspectives and activities. of technology
diffusion.
6.(a) Discuss the concepts of change management in implementation of

technology developed projects.
OR
(b) List and explain the problems encountered during the implementation of
technology development projects.
********
Code No. 8048
M.B.A. (Tech. Mgt.) II Semester Examination, Jan./Feb. 2005
Subject: Technology Transfer Management

Course No. 2.2
Time: 3 Hours: Max. Marks: I 00
Note: Answer all the questions.
Section - A (I Ox2=20 Marks)

Note: Answer all questions. Each questions carries 2 marks.
1 . Write short notes on the following in not more than 75 words each:
a) International technology transfer

b) Intrafirrn technology transfer
c) Technology matrix
d) Technology life cycle
e) IPR*'� in technology transfer agreements
f) Obligations of technology licensee (buyer)

•
· g) Technology adoption
h) Technical know-how
i) Technology evaluation parameters
j) PERT
Section - B (5x16=80 Marks) ·
2.a) Define Technology Transfer and compare the salient features of internal and
external technology transfer processes.
OR
b) Discuss about Taiwanese and Singapore models of technology transfer.
3.a) Explain technology assessment and technology evaluation concepts with Indian
examples.
OR
b) Explain technology audit concepts in the context ofindian industry.
4.a) Wh�t are the different models of technology transfer,.

i , /tXplain TT model suitable
for. Indian small scale industries. .
OR
b) Exp\aln salient features of technology transfer agreements taking examples of
Indian industry.
5.a) Explain management of technology absorption in Indian environment using the
relevant concepts.
OR
b) Explain the relevant concepts, bring out the importance of technology diffusion with
suitable examples.
6.a) Implementing technology in technology development projects is characterized by
uncertainty. Discuss.
OR
b) Discuss various steps involved in project management for implementing
technology developed projects.
******
Code No. 4037
M.B.A. (Technology Managemerit) I J Semester Examination,
January 2006
Subject: Technology Transfer Management
Course Nci. 2.2
Time: 3 Hours. Max. Marks: 1 00

PART-A (10x2�20 Marks)
N.B. Answer all the question. Each question carries 2 marks
1. Write short notes on the following in not more than 80 words each.
a) Channels of Technology flow
b) External Technology Transfer
c) Technological Metrics
d) Technology Delivery Process
· -e)-, Mode ofTech,nology T,ra.nsfer
- · -· ··- ··
t) Legal issues in Technology Transferagteement·

g) Technology import in India
• h) Technology evaluation
i) Problems in Technology implementation
j) Adoption of change management
Section - 8 ( 5x16 = 80 Marks)
2.a) Describe the Internal technology transfer with suitable examples.

OR
b) Explain the role of Technology Transfer in propelling U . S .A. into an
·
advanced nation.
3.a) 'Technology Assessment is an important aspect ofe[fective Technology

Management". Elaborate this statement with a good case.
OR
b) What is Technological audit and how is it conducted ? Discuss the
importance of strategic planning in Technology Transfer.
4.a) Explain a Technology Research strategy for a firm. What are the various
dimensions and features of technology transfer ?
OR
y
b) What is Technolog Transfer Agreement ? Elucidate its role in a
successful transfer of Technology.
5.a) Discuss the relationship between Technology absorption and diffusion.

Give an example of Telecom, Retail or Electronics Industry.
OR
b) Write an essay on the state of Technology imports into India in post
liberalisation phase.
6 . a) Implementing Technology is most difficult in various stages of a Technology ·

project. Offer a good case of your own industry.
OR
b) Explain the following terms:
i) Project Organisation
ii} Parallel implementation
iii) Developed Technology Project
iv) HR related issues in Technology implementations
*****

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.· Osmania University MBA (Technology Management)-2003-2005--TTM

' ' Foa i?..<C. \)(L•(6 c�· ${'..[',u'1 c�-1-t'(Y?) er'..'.'.

'" ., Internal technology transfer

OEFINlTIONS AND CLASSIFICATIONS

•!/egiona! rechnology rransfer, in which technology is transferred from one region

another. An example is the transfer of computer-aided design (CAD) expertise

Osmania University MBA (Technology Management)-2003-2005--TTM

firm t o a furniture-producing firm,

CHANNELS OF TECHNOLOGY FLOW -

information is harnessed by users and applied to their purposes. Channels of this

)''• 'j:Reverse-engineeritlE_channe/s: Other channels in which.the transfer occurs with

CASE OF RE ENGINEERING AT COMPAQ

Osmania University MBA (Technology Management)-2003-2005--TTM

')Etanned channels: The technology transfer is done intentionally, according to a

Osmania University MBA (Technology Management)-2003-2005--TTM

) .. pices of the European Union (EU). European governments have established a

In large organizations, technology is often produced developed and introduced by

Osmania University MBA {Technology Management)-2003-2005--TTM

Most successful enterprises emphasize the need of gathering accurate information

There.are a number of internal barriers to transfer of technology between R&D

Vasconcel!ous study indicated that the strongest barrier to internal technology

EXTERNAL TECHNOLOGY TRANSFER

Successful external technology transfer depends on a number of factors including

Osmania University MBA (Technology Management)-2003-2005·-TTM

Methods of external technology transfer:

Co-operative and collaborative ventures:

Most frequently stated objective of the co-operation and collaborative alliances is

• Market and 11iarkct-related motives

INTERNATIONAL TECHNOLOGY TRANSFER

The technological production base previously confined to the industrialised

Osmania University MBA (Technology Management)-2003-2005--TTM

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Osmania University MBA (Technology Management)-2003-2005--TTM

R-• __ f•"'I. ,,, 111u-J.:•-:J �

Some of his points are paraphrased below:

Osmania Un'1versity MBA (Technology Management)-2003-2005--TTM

TECHNOLOGY TRANSFER IN TAIWAN

industrial facilities completes the team of players needed to spur industrial

To facilitate the transfer further, an industrial park is located in close proximity to

Osmania University MBA (Technology Management)-2003-2005--TTM

U.S. NATIONAL TECHNOLOGY TRANSFER

Osmania un·1versity MBA (Technology Management)-2003-2005--TTM

Osmani� University MBA (Technology Management)-2003-2005--TTM

Osmania University MBA (Technology Management)-2003-2005--TTM

Osmania University MBA (Technology Management)-2003-2005--TTM

An appropriate amount of inventory of the product is built up as a reserve against

Osmania University MBA (Technology Management)-2003-2005--TTM

Several useful guidelines for setting up ·a transfer team are recommended by

Osmania University MBA (Technology Management)-2003-2005--TTM

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During the. entire lifecycle of process of a technology, it is important to determine if ·

A technology must pass through three gateways to become commercially or

Osmania University MBA (Technology Management)-2003-2005--TTM