SEM 5 -T.T- Week 1


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SEM 5 -T.T- Week 1

  1. 1. 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 :
  2. 2. 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)
  3. 3. 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.
  4. 4. 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
  5. 5. 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.
  6. 6. 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
  7. 7. 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
  8. 8. Technological Change8  Describe the overall process of  Invention  Innovation  Diffusion of technology or process.  It involve at all stages of research and development
  9. 9. 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
  10. 10. 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.
  11. 11. 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.
  12. 12. 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
  13. 13. 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.
  14. 14. 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.
  15. 15. 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.
  16. 16. 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
  17. 17. 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
  18. 18. Process of Sharing18  Sharing many other elements in Technology transfer such as:  Skill  Knowledge  Expertise  Time  Others
  19. 19. 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
  20. 20. Entrepreneur-Innovator20  Entrepreneur-innovator characterized by:  Initiative  Authority  Foresight  Captain of industry
  21. 21. 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
  22. 22. 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
  23. 23. 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
  24. 24. 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
  25. 25. 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
  26. 26. 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
  27. 27. How to overcome failure27  Long term interaction between host and home country  Marginal TT that can be stimulate positive response
  28. 28. Technological Development in Developed Country28  Presence of smooth linkages  Incremental  Material support  Knowledge-based  Knowledge intensive  New technology input requirement supplied by host country
  29. 29. 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
  30. 30. 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