Technology transferring method, purchase plant and equipment has covered through this presentation.

1. Purchase of Plant & Equipment
Technology Transfer Methods

2. Group Mambers

3. Outline
• From History
• Purchase of Plant and Equipment
• Examples from real world
• Advantages
• Disadvantages
• Situations to use

4. From History
• From 1880, in Japan new industries in
spinning, paper manufacture,
processing sugar, shipbuilding,
telephony, electric power generation
and electrical instruments and
equipment production grew from
technologies transferred from the West.
• This was done mainly using the
technology transferring method of
purchasing plant and equipments.

5. Purchase of Plant & Equipment
• The commercial transfer and acquisition of technology can take
place with the sale purchase of equipment and other capital
goods.
• Examples of capital equipment are machinery and tools needed
for the manufacture of products or the application of a process.
• Sales and purchases of capital goods and their import into the
country can be considered, in a sense, technology transfers
transactions.
• Contracts covering the sale and purchase and the import of
capital goods are sometimes associated with a license contract
and/or a know-how contract. In certain instances, provisions
concerning the sale and purchase and the import of capital
goods may be found in the license contract or the know-how
contract itself.

6. Purchase of Plant & Equipment
• Buy from the initial technology introducer,
may be from OEM to adopt the technology
in another country or company.
• Mostly used in manufacturing industry to
support indigenous technology.
• Widely applied in consumer goods Textile,
garment, food processing, leather.
• Generally mature technologies are
transferred.

7. Suppliers of Materials and Parts
• Willing to provide a full range of technical
support, information and manufacturing know-
how, and they can be as effective in know-how
transfer as in industrial licensing
arrangements.
Ex- manufacturing of color TV sets in India
• had an understanding with the foreign
suppliers of materials and components
regarding technical assistance in production.

8. Equipment Supplier
• A variety of technical services are
provided by equipment suppliers,
including operational and maintenance
procedures and even processing
knowhow (typical in chemical industry).
Some technologies are machine based
and therefore the know-how is
transferred along with supply of plant
and equipment.

9. Examples
• Japan
– Telegraph Service from Britain
– Ship building from Britain and France
– Turbine technology from Britain
– ‘spinning machinery’ equipped with 2,000
spindles from Britain
– Mitsui & Co/ Takada & Co/ Okura Group/
Mitsubishi Shipyard

10. International Process Plants (IPP)
• A worldwide buyer and seller of complete process
plants, equipment and industrial real estate.
• Headquartered in Hamilton, New Jersey,
• Global presence with offices in China, Czech
Republic, England, France, Germany, India, Italy,
Korea, Portugal, Romania and Russia.
• Specializes in the chemical, specialty chemical,
fine chemical, petrochemical, agrichemical,
fertilizer, pharmaceutical, plastics, gas and oil
refining, metal refining and food industries.
• http://www.hydrocarbons-
technology.com/contractors/processing/ipp/

11. Microsoft
• Microsoft purchased all the Nokia’s
devices business with technology and
plants.
• - From that day, Nokia’s phones and
tablets business run as a division of
Microsoft called Devices Group.
• - use all the Nokia’s technologies,
plants, machineries and even
employees.

12. Mitshubishi
• Mitsubishi Electric Corp buying memory chips for
it’s mobile phones from Macronix International Co.
starting from 2000.
• In 1999, Macronix was the only flash manufacturer
outside Japan or the United States to rank among
the world's top 12
• With this agreement Macronix will adapt
Mitsubishi's Multi-Chip Package technology, which
combines SRAM and flash in a smaller, thinner
package that trims weight while increasing density.

13. Mitshubishi
• Mitsubishi Trust & Banking Corporation Buying equipment for
trust bank's distribution processing systems from IBM Japan in
1999
• The agreement with IBM Japan worth more than $350 million
over ten years.
• The contract, which will be carried out by IBM Global Services,
Japan, a subsidiary of IBM Global Services, the world's largest
and most diverse IT services provider.
• By working with IBM Japan, a highly specialized company
possessing advanced technologies and experience in this field,
it is be possible to receive a stable and efficient service and also
to better utilize information technology to meet Mitsubishi
Trust’s business needs

14. Advantages
· Allows greater output per machine hour,
reduced labor and materials inputs per unit.
· Little or no R&D investment.
· Since the certain technology is well
developed, reliability and efficiency is higher.
· Modern technical knowledge comes in to
the firm

15. Disadvantages
· Very limited capacity of
purchases of plant and machinery.
· High investment in initial stage.
· Entirely new technologies
(machinery) leads to conduct training
programs for employees.

16. Situations most suitable for this
transfer method
• Used with mature technologies.
• Mature technologies are technologies that has been in
use for long enough that most of its initial faults and
inherent problems have been removed or reduced by
further development.
• Defining characteristics of mature technology are it’s
ease of use and low rate of technological breakthroughs.
Innovations related to immature technology are usually
rapid and diverse, and may change the whole use
paradigm but advances to a mature technology are
usually incremental improvements only.
•

17. • Therefore it is more sense to purchase plants and
equipment as it helps in both acquiring the technology as
well as production capacity without having to build from the
scratch in a market where no one has a major significant
technological advantage. Examples for mature
technologies - Farming, Automobile, Phones(land line),
Firearm, Watch.
• Mostly used in manufacturing industry related to consumer
goods.
• When using this method for mature technologies remove
it’s main disadvantages like only gaining technical
knowledge incorporated in the equipment and not getting
any new competences in the management and production
as well as lack of technological superiority over the
competitors.

18. Thank You….!!.

19. References
• Hoshimi Uchida: Technology Transfer
• http://www.hydrocarbons-
technology.com/contractors/processing/ipp/
• http://www.wipo.int/export/sites/www/sme/en/d
ocuments/pdf/technology_transfer.pdf
• http://managementversity.com/technology-
transfer/