BPTT 3133 TECHNOLOGY TRANSFER IN1 BUSINESS Dr. Md. Nor Hayati Bin Tahir B. Sc (Geology, UM) M. MoT (Technology, UTM) D. Sc (IT Economics, Waseda Japan) Mobile: 012-603 6456 e-mail : firstname.lastname@example.org
CONCEPT2 Technology The practical application discipline of science to commerce or industry Development Process of improving by expanding, enlarging, refining, evolvement, grad ual growth, evolution, maturation and progression Technology Change Technology Transfer (TT)
Definition: Technology3 Practical application of science to commerce or industry. A system of knowledge, skills, expertise, and organization used to produce and utilize goods and services that satisfy social demand Ideology that contributes to the healthy development in life Capabilities of human society to transform nature, the resources, into useful products for human consumption Facilitates human activities and to satisfy human needs for unlimited knowledge Practical application of science to commerce or industry Knowledge that is been embodied in the sciences and the application of the technique of sciences.
Technology can further explained4 Capabilities of human society to transform nature (resources) into useful products for human consumption Have its own generation Have its own structure Dynamic process that bring about socio-economic change and growth of human knowledge Development of technology will result a technological progress and new cycle of growth Can be updated and improved
Result5 The result can be benefited and disbenefited to human life. Impact of technology progress, Increase living standard Increase output per capita Increase of rate of national economic growth Further result, Continuous adaptation Improvement Development Towards technology-intensive industries Technological change originate externally and internally Resources - Knowledge and information embodied in mode of technology transfer The transfer of technology suggests how technology might be systematically imagine.
Technology Transfer6 Process of sharing of: Skills Knowledge Technologies Methods of manufacturing Samples of manufacturing Facilities Among governments and other institutions To ensure that scientific and technological developments are accessible to a wider range of users Who can then further develop and exploit the technology into new products, processes, applications, materials or
Mode of TT7 Technology transfer is embedded in Managerial Marketing contracts Political Technical service contracts Social Turnkey contracts National context International sub-contracting Intellectual Property Right Technical assistance Know-how Affiliate Foreign direct investment Licensing Licensing and joint ventures Business development that involve the transfer of equipment and materials Incubators and research parks Skilled manpower Information networks Organizational innovations Design and drawing Franchising Management contract
Technological Change8 Describe the overall process of Invention Innovation Diffusion of technology or process. It involve at all stages of research and development
TT to Developing Countries9 Definition: Developing Country Manufacturing industry contributes less that 10 % of GDP (World Bank) Technology will enhance Efficient use of resource Promote industrialization Socio-cultural development TT is the engine of development
Concept of Changes10 For efficiency of production and continuous improvement. The demand of different level of technology signifies the rate of technological changes in the nation. It demonstrates the gap between nations relates to technology specific and infrastructure related. For sustainability in developing nation The acquisition and adaptation of technology become more urgent and complex. These will affect the development process itself How the technology is transferred to the organization To the extent that varies in term of the magnitude and scope of change.
Magnitude and Scope of Change11 Depend on various factors such as: Resources Institutionalized infrastructure Organization-managerial style Political systems Knowledge and scientific capability Potential of imitation Knowledge absorption. Policies of a nation Economic environment of a nation Public acceptance of consequential social and political changes.
Non-Technical Changes12 Changes promote new set of values Geographically Environmental and resource location Scientific advance Pre-existing technology Market process Industrial relations Organization structure State institution and international systems of states Gender division Cultural factors
Technology growth13 Presence of technology gap Innovation, that tends to increase technological gap Innovation of technology that does not diffuse to the critical mass will increase the technological gap in a developing nation and among the developing nation. Example: comparing mobile technology and manufacturing technology among developing nation Both contributes to economic growth Imitation, which tends to reduce them Within the framework of technology transfer, imitation tends to increase the diffusion rate that in turn, reduce the gap. Issues of property right that does not bring about any economic implication to the owner but to the nation. Ethically, is not right.
Issues Relevant to Gap14 A close relationship between a nation’s economic and technological levels The rate of economic growth positively influenced by technological growth Nation facing a lower level technological gap will increase rate of economic growth through imitation The rate at which a nation exploits the possibilities offered by the technological gap depends on its ability to mobilize resources for transforming social, institutional and economic structure.
Implication of Tech Transfer’s15 Gap The technology policies become as part of economic policies for a nation. For wealth creation and not with the pursuit of technological achievement for its own sake. The economic benefits when brought to the market Measurement is by: Economic development by Gross Domestic Product (GDP) Technological development by the level of R&D or by patent statistics. Traditional Neoclassic Theory believes that: Technological development depends primarily on the relation between capital and labor. Technology Gap Theorist Relate the technological level of development of technology capabilities and innovative activities.
Technology Issues in Developing Countries16 UNESCO: Only 11 industrially developed countries produces science and technology (S&T) For TT to qualify, issues to consider are: Technological level Technical capability Absorption Assimilation Sub process to internalize transfer
Malaysian GDP• country comparison to the world: 31 • $383.6 billion (2009 est.) • $390.2 billion (2008 est.) • $372.7 billion (2007 est.)Note: data are in 2009 US dollars
Process of Sharing18 Sharing many other elements in Technology transfer such as: Skill Knowledge Expertise Time Others
Innovation Theory19 Innovation is necessarily linked to the entrepreneur Entrepreneur derives new economic combinations by means of introducing 5 parallel types of changes: Introducing new products; Introducing new production functions that decrease the input needed to produce a given product; Providing new consumers by opening new markets; Exploiting new sources of materials; and Reorganizing an industry
Entrepreneur-Innovator20 Entrepreneur-innovator characterized by: Initiative Authority Foresight Captain of industry
Factors affecting TT to Developing Countries21 Financial Language Technological resources Religion Low per capital Political instability GNP Labor strikes Unfair income distribution Transportation Lack of hard currency Telecommunication and Political conditions communication systems Ineffective bureaucracies Unmodernized education systems Illiteracy Research facilities Riots Insufficient professional Social violence institutions for technologists and researchers
Mastery of technology22 Upon TT: can host nation attain the same Between industrialized countries Industrialized countries to developing countries Range from mere transfer of production to complete process
Pathway of TT23 Process of TT is very costly and complicated Depend much on Level Direction of indigenous technological effort Institutional setting at host country TT system must accommodate Physical transaction to indigenous technological endowment to adoption and development in host country
Obstacle of Successful TT in Developing Country24 Sophisticated process that structurally is beyond control Socially and culturally Eg: adaptation and diffusion Output is fundamentally strange/unfamiliar
Why failure (1)25 Factors that are not easily been transferred: Knowledge Know-how S&T Management Global competition Investment capability Learning capability Organization-operation capability Economic characteristics Market size, degree of tariff protection, personal income, market and information distortion Availability of skills Political stability
Why failure (2)26 Substantial differences Widening gap in S&T capabilities Import of technologies requires resources capabilities HR skills Technical knowledge Information networks As a result – selection of appropriate technology
How to overcome failure27 Long term interaction between host and home country Marginal TT that can be stimulate positive response
Technological Development in Developed Country28 Presence of smooth linkages Incremental Material support Knowledge-based Knowledge intensive New technology input requirement supplied by host country
Appropriate Technology (1)29 Choices of right technology to be transferred to catalyze growth that appropriate to the environment strategically and to be utilized Technological Techno-economics National aggregate capability Socio-cultural Political Environmental Legal Ranges: Labor intensive Low technology Knowledge-based on expert system/ soft technologies
Appropriate Technology (2)30 Developing Countries depend on Economic assessment Other mode of assessment of appropriateness Firm level Limited to monetary cost-benefit assessment (quantitative) that will isolated from socio- cultural, technical and regional environment (subjective) Economic, social, environment and anthropocentric factors often excluded Lacking of guidelines and non-quantifiable factors