ASSINGMENT #2, CHAPTER 2,

2.9       List the key steps in the technology transfer (diffusion) process. What are some of the factors make technology transfer difficult? What are the forms in which information can be transferred?

Technology can result from the application of science to add value, simplification, diversification, and productivity to a management process or product. However, technology's value wanes unless it can be transferred to a user who can apply the technology to create a tangible benefit. Arising from this assertion, the vitality of public good science funding is critically dependent on technology transfer. Technology transfer appears to be a simple communication process. However, in-depth analysis reveals a predictable learning pattern whereby, comprehension of the technology is first achieved, and then comes the interpretation of how the technology can be used to solve a problem; finally, the actual application of the technology to solve a problem. Technology transfer has been employed for centuries as a method to boost technological and economic development of nations. The technology transfer process describes the linkages which integrates the adoption of new science knowledge, and the functional interrelations of the different specialists within the process. According to Khurana (2013) technology transfer is the process of disseminating technology (including knowledge and skills) from the giver to the recipient. Grosse (1996) defines the process as the process of transferring skills, knowledge, technologies, methods of manufacturing, samples of manufacturing and facilities among governments or universities 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 services.   

Technology transfer occurs only when certain conditions are met. First, there must be two parties at least - someone who wants to acquire the new technology and another party which is ready to give out the technology. This means the first condition is that there must be a supplier and an acquirer of the said technology. The second condition is about the willingness of the technology owner to release it. Technology seekers may work hard to search for the appropriate technologies; but these efforts may become futile, if technology owners are reluctant to give those technologies to other parties. The supplier may be reluctant due to fear of competition, due to security reasons, or because the technology might not be mature enough for releasing out. The third condition lies in the degree of the desire of the technology seeker. Regardless whether transfer process occurs internally or externally, there is one key factor driving the technology recipient to employ technology transfer as a development strategy. This factor is called technology user acceptance.

Technology transfer can be described as market pull or technology push. Market pull occurs when expressed needs or problems cause private companies to seek technology from elsewhere. In contrast, technology push occurs when acquired innovations or inventions are used to create new markets or consumer needs within or outside the given country. Whereas market pull of technology is demand driven process, technology push is supply driven. Sometimes, the push and pull forces complement each other, reinforcing the pace of technology transfer. In brief, there is a distinction between technology push and market pull or demand. A technology push implies that a new invention is pushed into the market through R&D, production, and sales functions; this takes place without accurate consideration of whether the pushed technology will satisfy the user needs or not. In contrast, a market pull occurs when an innovation is developed by the R&D entity in responding to an identified market need. So, technology push is a part of a business strategy of a company to create a market for its technology or products thereof. Many of the so called ‘international technical aid’ to developing countries from developed world can be seen as technology push if scrutinized critically.

Several challenges face technology transfer that makes the process difficult is: incomplete information; market power; and market failures. Incomplete information is the fact that technology owners do not always disclose all the information to the recipient; hence the buyer is unable to fully appreciate the actual price ant the extent of the technology. Owners would prefer to open subsidiaries than disclosing the whole truth to the would-be competitors. Regarding market power, owners of technology have more power than buyers because of their accumulated advantage and the power of patents and the backing they get from International Bodies. This situation makes the price of technology often higher than expected; hence giving a smile to technology owners and pain to buyers. Besides, the market cannot always appreciate and measure the costs and benefits of technology diffusion. Hence, technology owners may not gain any benefit that might eventually occur when the diffused technology produces spillovers. If there are any positive spillover results, the advantage will go to technology buyer alone.

Another problem is that policy makers and planners may face difficulty in analyzing, measuring and pricing of complex technology transfer processes. Together with that challenge is the intricate issue of technology imitation. Imitation is hardly reported or documented properly; hence, making the capture of innovation spillover difficult. These measurement challenges leads to another complication for policy makers of how to formulate adequate technology transfer targets for the national policies and programs in the complex technology transfer undertakings. Additional problem lies in the hidden mismatch between the goals of technology giver and buyer. The capitalist world adores super profits. Hence, their goal is often to realize as much profit as possible through whatever form of technology transfer. The poor world is struggling with solving socioeconomic growth problems. The goal here is to get technology at cheapest possible price. On the other hand, although a developing country may pay fully for the technology, the country may end up receiving outdated or secondhand technology; or it may even suffer from incomplete or inadequate delivery of technology. Last but not least, in technology transfer sometimes there exists a problem of separation of knowledge from technology due to fear of competition. Let it be known that without adequate transfer of knowledge, transfer of technology alone will not be effective. Both explicit and hidden knowledge must be transferred to the recipient. In fact, it is often difficult to get from technology owners the hidden knowledge because it is a key to a competitive advantage for the technology givers.

Finally, a few forms of the technology transfer are: (1) Newsletter (2) Technical reports and papers (3) Data sheets. (4) Workshops and seminars. (5) Internet.