Technology Transfer• One of the fundamental processes that influence the economic performance of nations and firms is technology transfer• Firms have many ways of exploiting their technological assets for profitability and growth• While internal exploitation of technological assets, through designing, developing, manufacturing, and selling products and processes continues to be important, interest in their exploitation through technology transfer has intensified in recent years.• This is due to globalization, and liberalization of business and greater emphasis on the protection of intellectual property after the formation of the World Trade Organization (WTO).• The main focus of TT is to improve the competitive advantage of firms through the enhancement of customer value.• SME’s have begun to utilize technology transfer as a strategic means of meeting challenges posed by the globalization of business. Due to their small size and skill resource constraints, they cannot carry out internal R&D to generate their won technologies but still need a flow of new technology to be able to compete
• The importance of TT from an economic and competitive perspective , has also stimulated university-industry technology transfer.• TT is the process of movement of technology from one entity to another. The transfer may be said to be successful if the receiving entity, the transferee, can effectively utilize the technology transferred and eventually assimilate it .• The movement may involve physical assets, know-how, and technical knowledge.• TT in some situations may be confined to relocating and exchanging of personnel or movement of a specific set of capabilities.• TT has also been used to refer to movements of technology from the laboratory to industry, developed to developing countries, or from one application to another domain.
Technology Transfer And Technology Diffusion• Technology Diffusion refers to the spreading, often passively within a specific technological population, of technological knowledge related to a specific innovation of interest to that population.• Technology Transfer is a proactive process to disseminate or acquire knowledge, experience and related artefacts.• TT is intentional and goal oriented but not a free process.• Transfer also presupposes agreement and therefore involves agreement, unlike diffusion
• Technology transfer can be classified as vertical and horizontal technology transfers.• Vertical transfers (internal technology transfers) refers to transfer of technology from basic research to applied research to development and then to production respectively.• Horizontal transfers (external technology transfers) refer to the movement and use of technology used in one place, organization, or context to another place, organization, or context.• TT can be material transfers (transfer of a new material or product), design transfer (transfer of designs and blueprints that facilitate the manufacturing by the transferee), and capacity transfers (transfer of know-how, know-why to adapt, and modify the material/product to suit requirements.