THE CHALLENGES OF GLOBALIZATION:
The globalization of the technological environment has brought complex changes for firms managing their intellectual property. According to one account, exports of intellectual property assets from the :United States have more than doubled during the past 10 years and now account for more than 25 percent of the total U.S exports.
Deterrence of international pirating activities is usually accomplished through unilateral, bilateral and multilateral means.
UNILATERAL STEPS:
It can be defined as an independent step by a country such as the: United States, to protect its citizens form the following piracy activities.
· the patent, copyright and trademark laws and
· Customs service regulations to block the importation of goods violating U.S. Intellectual property rights.
BILATERAL AGREEMENTS:
These are promises between two nations to conduct their policy affairs in certain ways.
MULTILATERAL METHODS:
This reaches beyond bilateral agreements in that many countries together agree to conform to a policy framework.
PATENT PROTECTION:
The patent policies throughout the world especially among the major developed countries, share a fair amount of commonality. Countries, however different policies regarding subject matter, length of protection, interpretation of claims, requirements for novelty, confidentiality of applications, and priority between different inventors .
COPYRIGHT:
International copyright policy is dominated by two multilateral arrangements. The Universal Copyright Convention and the Berne convention. The principle of both is the same. Foreigners from signatory countries must be granted national treatment under the copyright laws of any other member country.
TRADEMARKS:
This varies considerably among various countries. Unlike in the United States where priority is based on use in most countries trademark rights are granted to the first person to file for registration.
GRAY MARKETS:
The challenges of intellectual property protect, created by the globalization of the technology environment may be illustrated in the case of gray markets. A gray market is developed when a foreign manufactured good bearing a valid U.S. trademark is imported into the United States without the permission of the U.S. trademark code. There are some ways in which a gray market is created.
1. A domestic U.S. trademark holder authorizes an independent foreign manufacturer to use its trademark, and manufacturer agrees not to export to the United States. A gray market is created when the foreign manufactures exports to the United States or when a third party; purchaser exports to the United States
2. The domestic U.S. trademark owner establishes a foreign manufacturing Subsidiary or a division. A gray market is created when a third party Producer exports to the United States.
Wednesday, January 23, 2008
INTELLECTUAL PROPERTY PROTECTION
INTELLECTUAL PROPERTY PROTECTION:
Generally, a firm tries to protect its intellectual property in three ways:
INTELLECTUAL PROPERTY STRATEGY
PRODUCT- MARKET CONTINUAL LEGAL
ACTIONS INNOVATION STRATEGY
Standards Continual Improvement Patents
Barriers to Imitation Cannibalization Copyright
Collaborative Product Platform Trade Secret
Agreements Radical Innovation Trademarks
1. A firm may undertake actions in the product market to prevent competitors from eroding its competitive position through imitation. For example, it may invest in advertising; develop a system of licensing with exclusive arrangements with the licensees, or shut out the distribution channels to potential imitators.
2. It may focus on continuous innovation to thwart imitation and obsolescence. Continuous innovation enables a firm to keep one step ahead of the competition by introducing, for example, a series of new products.
3. The firm may seek legal protection through patents, copyrights, trade secrets, or trademarks. When a firm seeks recourse in the legal system, it relies on the intellectual property system of a country to defend or protect its intellectual property from competitors.
PRODUCT-MARKET ACTIONS:
Strategic action in the product markets may thwart imitation and obsolescence.
IMITATION: For competitors to imitate, four set of requirement to be met.
· Recognition
· Diagnosis
· Resources
· Costs and incentives
Actions undertaken by a firm that are visible in the marketplace include:
· Engaging in the battle for the standards
· Erecting entry barriers
· Limiting pricing
· Making collaborative arrangements
OBSOLESCENCE:
CONTINUAL INNOVATION:
· Incremental innovation
· Product cannibalization
· Product platform and product family
· Radical innovation
LEGAL STRATEGY:
· Patents
· Copyright
· Trade Secret
· Trade marks
Generally, a firm tries to protect its intellectual property in three ways:
INTELLECTUAL PROPERTY STRATEGY
PRODUCT- MARKET CONTINUAL LEGAL
ACTIONS INNOVATION STRATEGY
Standards Continual Improvement Patents
Barriers to Imitation Cannibalization Copyright
Collaborative Product Platform Trade Secret
Agreements Radical Innovation Trademarks
1. A firm may undertake actions in the product market to prevent competitors from eroding its competitive position through imitation. For example, it may invest in advertising; develop a system of licensing with exclusive arrangements with the licensees, or shut out the distribution channels to potential imitators.
2. It may focus on continuous innovation to thwart imitation and obsolescence. Continuous innovation enables a firm to keep one step ahead of the competition by introducing, for example, a series of new products.
3. The firm may seek legal protection through patents, copyrights, trade secrets, or trademarks. When a firm seeks recourse in the legal system, it relies on the intellectual property system of a country to defend or protect its intellectual property from competitors.
PRODUCT-MARKET ACTIONS:
Strategic action in the product markets may thwart imitation and obsolescence.
IMITATION: For competitors to imitate, four set of requirement to be met.
· Recognition
· Diagnosis
· Resources
· Costs and incentives
Actions undertaken by a firm that are visible in the marketplace include:
· Engaging in the battle for the standards
· Erecting entry barriers
· Limiting pricing
· Making collaborative arrangements
OBSOLESCENCE:
CONTINUAL INNOVATION:
· Incremental innovation
· Product cannibalization
· Product platform and product family
· Radical innovation
LEGAL STRATEGY:
· Patents
· Copyright
· Trade Secret
· Trade marks
INTELLECTUAL PROPERTY RIGHTS
INTELLECTUAL PROPERTY:
The knowledge assets of a firm span the entire technology development continuum from tacit knowledge to the knowledge that is physically embodied in products and processes. These knowledge assets are often termed intellectual capital. Intellectual property is legal concept that refers to the components of the intellectual capital that may be protected under the law.
Just like physical assets, intellectual capital enables firms to derive profits from its activities. For example, technical knowledge can be deployed in products to gain competitive advantage. Alternatively, knowledge of specific processes may enable a firm to reduce the cost of operations, thereby enhancing its profitability. Or, a firm may license its intellectual property to others and earn fees from the licensee. Finally, a firm can sell its technology and profitably recoup the funds that it invested in the development of that technology.
Because intellectual capital is the key to competitive advantage and profitability, in a free market economy, competitors will try to appropriate it for their own ends.
A firm may lose its intellectual property to these competitors in three ways:
1. IMITATION: It is a serious threat to any competitive advantage, be it based on intellectual capital or otherwise. Unless imitators face severe costs of imitation thru retaliation, or legal action, they; can benefit form the investments jade by the innovators, without incurring the costs of innovation.
2. OBSOLESCENCE: Competitors can themselves engage in innovation and produce a superior product or service that acts as a substitute to a firm’s products or services.
3. INFRINGEMENT OR THEFT: Competitors can infringe or worse, steal, firm’s knowledge assets.
The intellectual property strategy of firms thus refers to the approach that it takes to seal its intellectual assets from the forces of imitation, obsolescence, or infringement, and theft.
The knowledge assets of a firm span the entire technology development continuum from tacit knowledge to the knowledge that is physically embodied in products and processes. These knowledge assets are often termed intellectual capital. Intellectual property is legal concept that refers to the components of the intellectual capital that may be protected under the law.
Just like physical assets, intellectual capital enables firms to derive profits from its activities. For example, technical knowledge can be deployed in products to gain competitive advantage. Alternatively, knowledge of specific processes may enable a firm to reduce the cost of operations, thereby enhancing its profitability. Or, a firm may license its intellectual property to others and earn fees from the licensee. Finally, a firm can sell its technology and profitably recoup the funds that it invested in the development of that technology.
Because intellectual capital is the key to competitive advantage and profitability, in a free market economy, competitors will try to appropriate it for their own ends.
A firm may lose its intellectual property to these competitors in three ways:
1. IMITATION: It is a serious threat to any competitive advantage, be it based on intellectual capital or otherwise. Unless imitators face severe costs of imitation thru retaliation, or legal action, they; can benefit form the investments jade by the innovators, without incurring the costs of innovation.
2. OBSOLESCENCE: Competitors can themselves engage in innovation and produce a superior product or service that acts as a substitute to a firm’s products or services.
3. INFRINGEMENT OR THEFT: Competitors can infringe or worse, steal, firm’s knowledge assets.
The intellectual property strategy of firms thus refers to the approach that it takes to seal its intellectual assets from the forces of imitation, obsolescence, or infringement, and theft.
TECHNOLOGY INFORMATION
TECHNOLOGY INFORMATION:
It means information of technology. It is referred to us a communication of facts, findings, results, ideas and thoughts.
The technology essentially means “Know how” that’s, ways of designing, manufacturing or utilizing things. It can also be defined as the Know how to transform concepts in to goods and services for the satisfaction of customers technology is imbibed in various forms., the most common of this could be identified in machines used for manufacture or the skills that are transformed through human beings.
The importance of technological information as a key element in the development process in country has been well acknowledged in the process of establishment of a new undertaking or during its operation, information is not the first requirements and the success of subsequent operations largely depends on the quality of information on which the initial decisions where based. Whether the issues related to investment, technology acquisitions, manpower development, research and development, the information is important.
CONTENTS OF TECHNOLOGY INFORMATION:
It covers both hardware and software aspects.
PRE-FEASIBILITY STAGE:
--Alternative products with their technology content.
--The stage at which the products are in their technology life cycle.
--Sources of availability of technology.
--Plant and equipment required.
--Optimum size of plant.
--Raw materials, utilities and man power requirement.
--Status of process and design development.
--Status of industrial property rights.
--Appropriateness of technology under local conditions.
--Possibilities of sources of funding for technology.
FEASIBILITY STAGE;
The above set of information but in greater detail and with greater depth and scope is required. Fro instance, regarding sources of technology one would seek information on the various sources of supply of technology, their relative merits and demerits and cost of technology. This information is indeed is very desirable so as to be in a better bargaining portion while acquiring technology.
IMPLEMENTATION STAGE:
• Information on plan installation and operations.
• Training particularly in any specialized skills that may be required.
• Machinery maintenance schedules.
• Technology absorption and adaptation plants.
PLANT OPERATION STAGE:
• Product quality and quality control measures.
• Efficiency of operations.
• Product applications, potential fields of new applications.
• Technology absorption and adaptation.
SOURCES OF TECHNOLOGY INFORMATION:
• Published literature
• Exhibitions and Conferences
• Industrial and Trade Associations
• Government organizations and departments
• Patents
• Experts and Consultants
• Databanks/bases
PATENT BASED TECHNOLOGIES:
This is a rich source of information. A look into this can uncover inventions including those not protected by the national patent law. It identifies which countries and companies are dominant in particular technologies. It gives an update on the state-of-the-art of patent based technologies that could guide firms and entrepreneurs as to where their business concerns could lead as well as encourage innovators to stimulate their creativeness or to rekindle old ideas.
The information on patents in India could be obtained from the patent offices located at Calcutta, Delhi, Bombay, Chennai, and the centralized information centre at Nagpur.
The patents gives the local information centres for ensuring resources sharing activities like inter-library loans, referral services and document supply services. A software research centre called National Resource Software centre (NRSC) has been established at Vishakhapatnam. The centre will acquire information handling software packages from international and national organizations, among its other activities. NISSAT is for on-line search facilities on a permanent basis in the country and five regional access centres have been established.
TIFAC – Technology Information, Forecasting and Assessment Council
a) Creation of an information system including data base/data bank
b) conducting action oriented studies and forecasting in selected priority areas
c) Action towards publications and creation of Public Information System Base.
d) Management development
e) Development of linkages with private sector, small industries and educational sector.
NATIONAL INFORMATION SYSTEM FOR SCIENCE & TECHNOLOGY (NISSAT)
OBJECTIVES:
i) Provision of national information services to meet the present and future needs
ii) Optimum utilization of existing information services and systems.
iii) Promotion of national international cooperation and liaison for exchange of information.
iv) Support and participate in research, development and innovation in information science and communications,
It means information of technology. It is referred to us a communication of facts, findings, results, ideas and thoughts.
The technology essentially means “Know how” that’s, ways of designing, manufacturing or utilizing things. It can also be defined as the Know how to transform concepts in to goods and services for the satisfaction of customers technology is imbibed in various forms., the most common of this could be identified in machines used for manufacture or the skills that are transformed through human beings.
The importance of technological information as a key element in the development process in country has been well acknowledged in the process of establishment of a new undertaking or during its operation, information is not the first requirements and the success of subsequent operations largely depends on the quality of information on which the initial decisions where based. Whether the issues related to investment, technology acquisitions, manpower development, research and development, the information is important.
CONTENTS OF TECHNOLOGY INFORMATION:
It covers both hardware and software aspects.
PRE-FEASIBILITY STAGE:
--Alternative products with their technology content.
--The stage at which the products are in their technology life cycle.
--Sources of availability of technology.
--Plant and equipment required.
--Optimum size of plant.
--Raw materials, utilities and man power requirement.
--Status of process and design development.
--Status of industrial property rights.
--Appropriateness of technology under local conditions.
--Possibilities of sources of funding for technology.
FEASIBILITY STAGE;
The above set of information but in greater detail and with greater depth and scope is required. Fro instance, regarding sources of technology one would seek information on the various sources of supply of technology, their relative merits and demerits and cost of technology. This information is indeed is very desirable so as to be in a better bargaining portion while acquiring technology.
IMPLEMENTATION STAGE:
• Information on plan installation and operations.
• Training particularly in any specialized skills that may be required.
• Machinery maintenance schedules.
• Technology absorption and adaptation plants.
PLANT OPERATION STAGE:
• Product quality and quality control measures.
• Efficiency of operations.
• Product applications, potential fields of new applications.
• Technology absorption and adaptation.
SOURCES OF TECHNOLOGY INFORMATION:
• Published literature
• Exhibitions and Conferences
• Industrial and Trade Associations
• Government organizations and departments
• Patents
• Experts and Consultants
• Databanks/bases
PATENT BASED TECHNOLOGIES:
This is a rich source of information. A look into this can uncover inventions including those not protected by the national patent law. It identifies which countries and companies are dominant in particular technologies. It gives an update on the state-of-the-art of patent based technologies that could guide firms and entrepreneurs as to where their business concerns could lead as well as encourage innovators to stimulate their creativeness or to rekindle old ideas.
The information on patents in India could be obtained from the patent offices located at Calcutta, Delhi, Bombay, Chennai, and the centralized information centre at Nagpur.
The patents gives the local information centres for ensuring resources sharing activities like inter-library loans, referral services and document supply services. A software research centre called National Resource Software centre (NRSC) has been established at Vishakhapatnam. The centre will acquire information handling software packages from international and national organizations, among its other activities. NISSAT is for on-line search facilities on a permanent basis in the country and five regional access centres have been established.
TIFAC – Technology Information, Forecasting and Assessment Council
a) Creation of an information system including data base/data bank
b) conducting action oriented studies and forecasting in selected priority areas
c) Action towards publications and creation of Public Information System Base.
d) Management development
e) Development of linkages with private sector, small industries and educational sector.
NATIONAL INFORMATION SYSTEM FOR SCIENCE & TECHNOLOGY (NISSAT)
OBJECTIVES:
i) Provision of national information services to meet the present and future needs
ii) Optimum utilization of existing information services and systems.
iii) Promotion of national international cooperation and liaison for exchange of information.
iv) Support and participate in research, development and innovation in information science and communications,
TECHNOLOGY SUPPORT SYSTEMS
TECHNOLOGY SUPPORT SYSTEMS:
Technology support systems in India includes following instititutions:
· IFCI- Industrial finance Corporation of India
· ICICI – Industrial Credit & Investment Corporation of India.
· IDBI – Industrial Development Bank of India.
· RCTC- (promoted by ICICI) Risk Capital &Technology Finance corporation Ltd.
· SIDBI- Small Industries Development Bank of India.
· NRDC- National Research Development Corporations of India.
· BCIL- Biotech consortium India Ltd.
· TDICI- Technology Development and Investment Corporations of India.
· SFC- State Finance Corporation.
· SIDCO- State Industries Development Corporation.
Institution providing technology finance:
There are two types of financial considerations while extending financial support by these institutions.
1) Funds for setting up new units/industrial diversification.
2) Funds for R&D activities and R&D infrastructure.
There are number of venture capital fund companies in the public and private sector, they also have state finance corporation.
VENTURE CAPITAL:
In the budget for 1986-87 govt of India decided to impose 5% levy on all technology import payments to create funds to be operated by IDBI, known as the venture capital fund of IDBI. Since then, a number of specialized financial institutions have been promoted by the major all India financial institutions.
EX. RCTC promoted by IFCI
VECAUS III promoted by IFCI and UTI
TDICI promoted by ICICI and UTI
In addition the following organizations also entered the field one is ‘SBI capital market’ (venture capital fund of SBI’s merchant banking decision)
India investment fund (GRINDLAYS Bank)
Can bank financial services
Credit Capital Financial Corporation
India Venture Capital Fund
RCTC:
It is a public limited company incorporated in Jan 1988, it provides:
a) Risk capital to first generation entrepreneurs to setup industrial units in medium and medium large sectors (project cost 2-10 crore )
b) Finance for technology development particular for advancement of R&D, it provides funds by
1. Equity participations
2. Loans
n Conventional (low interest rate)
n Conditional (interest free loans but profit sharing when a company earns profits)
Venture capital fund of IDBI:
It is designed to promote adoption of domestic technology to encourage adapt ion of imported technology for:
1) Setting up of pilot or demonstration plans.
2) Development of product/process for import substitution or up gradation.
3) Reducing material consumption, savings in energy etc.
4) Assistance in the form of conventional loans (5-25 lakhs)
Venture Capital scheme of TDICI:
It extends financial assistance to projects involving commercialization of new technology, indigenous technology or imported innovative technology transferred from an external source. Assistance available for initial aggregate investment up to 2 crore. Assistance may be in equity investment, condition and conventional loan.
PACT (Programme for advancement of commercial technology)
It envisages technical developments not technical transfer through INDO-US joint ventures in R&D.
To eligible for PACT support, a project should
a) Involve the development through R&D efforts, of an innovative product or process which promises tangible benefits to the Indian economy.
b) Be proposed by an Indian company and US company as a team, with each member having a specified role in the development and commercialization programme.
c) Have potential for commercialization in three years.
d) involve technology development and not just technology transfer and
e) Not be related to defense. Weather modification or abortion-related equipment or services.
RISK FINANCE BY NATIONAL RESEARCH DEVELOPMENT CORPORATION (NRDC)
NRDC, New Delhi, a Government of India enterprise in the Department of Scientific and Industrial Research (DSIR) is charged with the objective of commercial sing research carried out in national laboratories. It provides risk finance for technology development both by way of equity participation in companies set up for the first commercialization of NRDC know-how and also provides development loans for setting up of pilot plants.
Technology support systems in India includes following instititutions:
· IFCI- Industrial finance Corporation of India
· ICICI – Industrial Credit & Investment Corporation of India.
· IDBI – Industrial Development Bank of India.
· RCTC- (promoted by ICICI) Risk Capital &Technology Finance corporation Ltd.
· SIDBI- Small Industries Development Bank of India.
· NRDC- National Research Development Corporations of India.
· BCIL- Biotech consortium India Ltd.
· TDICI- Technology Development and Investment Corporations of India.
· SFC- State Finance Corporation.
· SIDCO- State Industries Development Corporation.
Institution providing technology finance:
There are two types of financial considerations while extending financial support by these institutions.
1) Funds for setting up new units/industrial diversification.
2) Funds for R&D activities and R&D infrastructure.
There are number of venture capital fund companies in the public and private sector, they also have state finance corporation.
VENTURE CAPITAL:
In the budget for 1986-87 govt of India decided to impose 5% levy on all technology import payments to create funds to be operated by IDBI, known as the venture capital fund of IDBI. Since then, a number of specialized financial institutions have been promoted by the major all India financial institutions.
EX. RCTC promoted by IFCI
VECAUS III promoted by IFCI and UTI
TDICI promoted by ICICI and UTI
In addition the following organizations also entered the field one is ‘SBI capital market’ (venture capital fund of SBI’s merchant banking decision)
India investment fund (GRINDLAYS Bank)
Can bank financial services
Credit Capital Financial Corporation
India Venture Capital Fund
RCTC:
It is a public limited company incorporated in Jan 1988, it provides:
a) Risk capital to first generation entrepreneurs to setup industrial units in medium and medium large sectors (project cost 2-10 crore )
b) Finance for technology development particular for advancement of R&D, it provides funds by
1. Equity participations
2. Loans
n Conventional (low interest rate)
n Conditional (interest free loans but profit sharing when a company earns profits)
Venture capital fund of IDBI:
It is designed to promote adoption of domestic technology to encourage adapt ion of imported technology for:
1) Setting up of pilot or demonstration plans.
2) Development of product/process for import substitution or up gradation.
3) Reducing material consumption, savings in energy etc.
4) Assistance in the form of conventional loans (5-25 lakhs)
Venture Capital scheme of TDICI:
It extends financial assistance to projects involving commercialization of new technology, indigenous technology or imported innovative technology transferred from an external source. Assistance available for initial aggregate investment up to 2 crore. Assistance may be in equity investment, condition and conventional loan.
PACT (Programme for advancement of commercial technology)
It envisages technical developments not technical transfer through INDO-US joint ventures in R&D.
To eligible for PACT support, a project should
a) Involve the development through R&D efforts, of an innovative product or process which promises tangible benefits to the Indian economy.
b) Be proposed by an Indian company and US company as a team, with each member having a specified role in the development and commercialization programme.
c) Have potential for commercialization in three years.
d) involve technology development and not just technology transfer and
e) Not be related to defense. Weather modification or abortion-related equipment or services.
RISK FINANCE BY NATIONAL RESEARCH DEVELOPMENT CORPORATION (NRDC)
NRDC, New Delhi, a Government of India enterprise in the Department of Scientific and Industrial Research (DSIR) is charged with the objective of commercial sing research carried out in national laboratories. It provides risk finance for technology development both by way of equity participation in companies set up for the first commercialization of NRDC know-how and also provides development loans for setting up of pilot plants.
TECHNOLOGY DIFFUSION
TECHNOLOGY DIFFUSION:
The term diffusion refers to the spread of a new idea (product, technology, service or method) from the time of its invention or creation to its ultimate adoption by an increasing number of users in different circumstances.
Diffusion involves special types of communication method or system to help diffuse changes in practice, as well as change in knowledge or attitudes.
The diffusion process is complete when:
· A sufficient number of customers are using the innovation to pay back the amount used to develop it.
· it starts to make a profit
· A system is in place for assessing the need for changes to ensure the longevity of the technology.
Many organizations, such as Indian Space Research Organization (ISRO), Atomic energy(AE), Defense Research and Development Organization(DRDO), Council of Scientific and Industrial Research (CSIR) have set up their own mechanisms to diffuse their innovations and technologies.
IMPORTANCE OF DIFFUSION:
· Diffusion helps the organization to make most of its technical innovation.
· Companies can sell their technologies to different companies by understanding their needs.
· For example firm manufacturing telephone switching equipment for temperature climate and stable power supply should try to make equipment for tropical climate and unstable power supply.
· Technology that becomes obsolete in one market may still be useful in other markets.
· For example some technology India acquired from abroad in which hi-tech field is already out lived their life in their own countries.
PROCESS OF DIFFUSION:
Completed in five stages:
1) Individual action
2) applying basic research
3) industrialization
4) commercialization
5) full scale diffusion
INDIVIDUAL ACTION:
It involves 8 steps or phases to the innovation and diffusion process.
a) Creation of favorable conditions
b) Identification of unfulfilled needs (ex. modification required on existing technologies or creation of new technologies )
c) Definition of the problem
People marketing translate their perception to develop ment section. People in development section conveys to Research. The Research department translates their findings to development as marketing section. This way individual from each section and participates in innovation.
d) Preparation for problem solving:
Information collected on
*what customer really want?
· What other has done to solve it?
· What solutions have not been successful?
e) Incubation:
Conductive atmosphere is provided to promote creative thinking and stimulate ideas.
f) Inspiration: Superiors, coworkers encourage the creative work.
g) Externalization: Preparing the idea for others outside the organization also to develop and evaluate.
h) Influence: Influence Socio-Political leadership to gain acceptance for a generated solution.
2) APPLYING BASIC RESEARCH:
At this stage linking basic scientist work, applied scientist work and market to visualize market possibilities of new ideas.
3)INDUSTRAIALIZATION: At this stage, partial and profitable application of technology with the cooperation between Research personnel and marketing and engineering personnel for putting to industrial use for initial product process.
4) COMMERCIALIZATION:
Organizing trials and mechanisms for the transfer of technology and managing technological life cycle. The trials include
· Small scale pilot testing
· Launching innovation trials, prepare check manuals, for ease of understanding.
· Communication activities: Marketing people develops new promotional programme. Market is identified are targeted and enterprise develops capabilities to manage diffusion.
6) FULL SCALE DIFFUSION:
This is the last stage of comprehensive innovation/diffusion process. It includes a search for a wider range of potential markets, new industries new geographic regions, new market segments that have not been explored, and new ways to couple the innovation with other innovations. The way that electronics and computers have diffused throughout the industry and the world is prime example of full scale diffusion.
DEVELOPING A DIFFUSION STRATEGY:
TAKING THE TECHNOLOGY TO THE MARKET PLACE:
Developing a diffusion strategy involves a number of activities and many people.
1). Assess the Organizational Climate:
It includes the need to orient to the future, for timely action, to anticipate changes, threats, and opportunities, and for all members of the organization to play a role in launching an innovation.
Studies of successful diffusion show that presence of dedicated people who persist in their efforts. Such people are call ‘technology champions”
Or “change agents”
2) understand the role of “Technology Champion “:
He must play a bridge role within and outside the organization. Within the organization he should provide communications between the marketing and the R&D organization. In market driven organizations, the technological innovation come from the marketing. R&D reaction comes in the form of guidance on what is technically feasible and ideas from scientific circles.
When introducing a new technology to potential customers outside the organization he must explain the need for the technology. Demonstrations, films or other techniques can help the customer to become aware of new technology. He must show real interest in the user’s problems and prove it in his behavior. He should be sensitive to the user’s needs and help the user to overcome problems he encounters.
3) Define the Profile to the Technological Innovation:
Different types of technological innovation require different diffusion efforts. If the technology is new to both the market and the company, adopters of the technology have to be educated on its use. Diffusion efforts must stress the superior attributes of the new technology.
4) Use Opinion Leaders:
The identification of opinion leaders, assessment of their orientation (towards acceptance or rejection), assessment of their scope of influence, and development of ways to influence them is the important part of the diffusion strategy.
5) Develop a Communication Strategy:
Developing a communication strategy is to achieve successful communication the organizations must relate the innovation’s attributes to customer needs. The change agent must show, through its communications that it wants to be useful by meeting customer needs and is willing to learn from its customers.
Communications: Two areas of communication are within the organization (internal communication and with agencies outside the organization is external communication).
INTERNAL COMMUNICATION: The innovator must describe the innovation in terms that enable others to work on its behalf. Thus facilitating communications between R&D and marketing is a continuing management task. The message to internal corporate decision-makers should include realistic estimates of the initial resource requirements, staff, time, and money required to launch the innovation.
EXTERNAL COMMUCIATION: It is guided by the
a) attributes of the innovation and
b) The characteristics of the target market of the technological innovation.
a) ATTRIBUTES OF INNOVATION:
· relative advantage,
· compatibility
· complexity
· testability
· visibility
i) The relative advantage of a new idea helps determine its rate of adoption. Companies can reduce the perceived risk of trying an innovation by offering performance guarantee (like yield for a new process). Societal factors may also affect the customer’s perception of relative advantage. For example the oil crisis increase interest in energy saving technologies for automobiles, power generation etc.
ii) Compatibility is the degree to which potential adopters see an innovation as consistent with their values, experiences and needs. For example many organizations are diversifying into high technology computers and communication.
iii) Complexity is the degree to which an innovation is relatively difficult to understand and use. For example the user-friendly menu driven software have overcome user’s resistance to perceived complexity.
iv) Testability is the degree to which potential adopters can experiment with an innovation on a limited basis. For example, modular switching allows for testing the basic building blocks.
v) Visibility is the degree to which the results of a new technology are apparent to others. For example when digital technology was introduced in films they could perceive in significant difference in watching the film.
b) CHARACTERISTICS OF THE TARGET MARKET:
Communication channels: Two principal modes of communication for message about innovation are the mass media (radio, TV, film, mobiles, newspaper, magazines) and interpersonal channels (word of mouth, trade shows, demonstrations etc.)
The mass media are relatively quick in beaming the message to many people. But lack of feedback about customer reception will make the media less effective than interpersonal communication in molding attitudes to the new technology. This may be suitable for food preservation/processing with potential for large number of customers spread over a wide area.
Interpersonal communication can be a dialogue between the innovator and the potential customer, a strong relationship exists between understanding a technological innovation and begin influenced to buy.
The term diffusion refers to the spread of a new idea (product, technology, service or method) from the time of its invention or creation to its ultimate adoption by an increasing number of users in different circumstances.
Diffusion involves special types of communication method or system to help diffuse changes in practice, as well as change in knowledge or attitudes.
The diffusion process is complete when:
· A sufficient number of customers are using the innovation to pay back the amount used to develop it.
· it starts to make a profit
· A system is in place for assessing the need for changes to ensure the longevity of the technology.
Many organizations, such as Indian Space Research Organization (ISRO), Atomic energy(AE), Defense Research and Development Organization(DRDO), Council of Scientific and Industrial Research (CSIR) have set up their own mechanisms to diffuse their innovations and technologies.
IMPORTANCE OF DIFFUSION:
· Diffusion helps the organization to make most of its technical innovation.
· Companies can sell their technologies to different companies by understanding their needs.
· For example firm manufacturing telephone switching equipment for temperature climate and stable power supply should try to make equipment for tropical climate and unstable power supply.
· Technology that becomes obsolete in one market may still be useful in other markets.
· For example some technology India acquired from abroad in which hi-tech field is already out lived their life in their own countries.
PROCESS OF DIFFUSION:
Completed in five stages:
1) Individual action
2) applying basic research
3) industrialization
4) commercialization
5) full scale diffusion
INDIVIDUAL ACTION:
It involves 8 steps or phases to the innovation and diffusion process.
a) Creation of favorable conditions
b) Identification of unfulfilled needs (ex. modification required on existing technologies or creation of new technologies )
c) Definition of the problem
People marketing translate their perception to develop ment section. People in development section conveys to Research. The Research department translates their findings to development as marketing section. This way individual from each section and participates in innovation.
d) Preparation for problem solving:
Information collected on
*what customer really want?
· What other has done to solve it?
· What solutions have not been successful?
e) Incubation:
Conductive atmosphere is provided to promote creative thinking and stimulate ideas.
f) Inspiration: Superiors, coworkers encourage the creative work.
g) Externalization: Preparing the idea for others outside the organization also to develop and evaluate.
h) Influence: Influence Socio-Political leadership to gain acceptance for a generated solution.
2) APPLYING BASIC RESEARCH:
At this stage linking basic scientist work, applied scientist work and market to visualize market possibilities of new ideas.
3)INDUSTRAIALIZATION: At this stage, partial and profitable application of technology with the cooperation between Research personnel and marketing and engineering personnel for putting to industrial use for initial product process.
4) COMMERCIALIZATION:
Organizing trials and mechanisms for the transfer of technology and managing technological life cycle. The trials include
· Small scale pilot testing
· Launching innovation trials, prepare check manuals, for ease of understanding.
· Communication activities: Marketing people develops new promotional programme. Market is identified are targeted and enterprise develops capabilities to manage diffusion.
6) FULL SCALE DIFFUSION:
This is the last stage of comprehensive innovation/diffusion process. It includes a search for a wider range of potential markets, new industries new geographic regions, new market segments that have not been explored, and new ways to couple the innovation with other innovations. The way that electronics and computers have diffused throughout the industry and the world is prime example of full scale diffusion.
DEVELOPING A DIFFUSION STRATEGY:
TAKING THE TECHNOLOGY TO THE MARKET PLACE:
Developing a diffusion strategy involves a number of activities and many people.
1). Assess the Organizational Climate:
It includes the need to orient to the future, for timely action, to anticipate changes, threats, and opportunities, and for all members of the organization to play a role in launching an innovation.
Studies of successful diffusion show that presence of dedicated people who persist in their efforts. Such people are call ‘technology champions”
Or “change agents”
2) understand the role of “Technology Champion “:
He must play a bridge role within and outside the organization. Within the organization he should provide communications between the marketing and the R&D organization. In market driven organizations, the technological innovation come from the marketing. R&D reaction comes in the form of guidance on what is technically feasible and ideas from scientific circles.
When introducing a new technology to potential customers outside the organization he must explain the need for the technology. Demonstrations, films or other techniques can help the customer to become aware of new technology. He must show real interest in the user’s problems and prove it in his behavior. He should be sensitive to the user’s needs and help the user to overcome problems he encounters.
3) Define the Profile to the Technological Innovation:
Different types of technological innovation require different diffusion efforts. If the technology is new to both the market and the company, adopters of the technology have to be educated on its use. Diffusion efforts must stress the superior attributes of the new technology.
4) Use Opinion Leaders:
The identification of opinion leaders, assessment of their orientation (towards acceptance or rejection), assessment of their scope of influence, and development of ways to influence them is the important part of the diffusion strategy.
5) Develop a Communication Strategy:
Developing a communication strategy is to achieve successful communication the organizations must relate the innovation’s attributes to customer needs. The change agent must show, through its communications that it wants to be useful by meeting customer needs and is willing to learn from its customers.
Communications: Two areas of communication are within the organization (internal communication and with agencies outside the organization is external communication).
INTERNAL COMMUNICATION: The innovator must describe the innovation in terms that enable others to work on its behalf. Thus facilitating communications between R&D and marketing is a continuing management task. The message to internal corporate decision-makers should include realistic estimates of the initial resource requirements, staff, time, and money required to launch the innovation.
EXTERNAL COMMUCIATION: It is guided by the
a) attributes of the innovation and
b) The characteristics of the target market of the technological innovation.
a) ATTRIBUTES OF INNOVATION:
· relative advantage,
· compatibility
· complexity
· testability
· visibility
i) The relative advantage of a new idea helps determine its rate of adoption. Companies can reduce the perceived risk of trying an innovation by offering performance guarantee (like yield for a new process). Societal factors may also affect the customer’s perception of relative advantage. For example the oil crisis increase interest in energy saving technologies for automobiles, power generation etc.
ii) Compatibility is the degree to which potential adopters see an innovation as consistent with their values, experiences and needs. For example many organizations are diversifying into high technology computers and communication.
iii) Complexity is the degree to which an innovation is relatively difficult to understand and use. For example the user-friendly menu driven software have overcome user’s resistance to perceived complexity.
iv) Testability is the degree to which potential adopters can experiment with an innovation on a limited basis. For example, modular switching allows for testing the basic building blocks.
v) Visibility is the degree to which the results of a new technology are apparent to others. For example when digital technology was introduced in films they could perceive in significant difference in watching the film.
b) CHARACTERISTICS OF THE TARGET MARKET:
Communication channels: Two principal modes of communication for message about innovation are the mass media (radio, TV, film, mobiles, newspaper, magazines) and interpersonal channels (word of mouth, trade shows, demonstrations etc.)
The mass media are relatively quick in beaming the message to many people. But lack of feedback about customer reception will make the media less effective than interpersonal communication in molding attitudes to the new technology. This may be suitable for food preservation/processing with potential for large number of customers spread over a wide area.
Interpersonal communication can be a dialogue between the innovator and the potential customer, a strong relationship exists between understanding a technological innovation and begin influenced to buy.
TECHNOLOGY STRATEGY
TECHNOLOGY STRATEGY:
The strategy actually implies long-term, purposeful and interconnected efforts, while tactics implies action to deal with immediate specific problems. (Strategy is an antonym of tactics). Technology strategy is defined as a strategy to deal with the technology and related issues at macro and micro levels, with respect to set objectives.
MACRO LEVEL STRATEGY:
At macro level, each country outlines and adopts a technology strategy to achieve its political, economic, and social objectives and translated the same into action through appropriate policies and mechanisms.
For example, US may adopt of excel in “defense” or “warfare technologies” or in generation of first stage new technologies for knowledge-based industries, while Japan may excel in technologies for consumer products of newer designs at lower costs. Korea may decide to adopt and upgrade imported technologies using mass production techniques for consumer products without really caring much for aesthetic or high quality levels, and without bothering for defense or other strategic applications. On the other hand, India may decide to develop its own capabilities in strategic areas such as defense, atomic energy and space where technologies are usually closely guarded or for maximum utilization of its own resources. It may thus train S&T manpower, generate employment, promote rural development, and check population. Thus, technology strategies may vary with the national perspectives, and accordingly policies and mechanisms are evolved and implements. Financial resources play and important role in evolving the technology strategies. Depending on the resources available and the will of the government, the policies are evolved, mechanisms are set up and measures are taken to ensure the achievement of the set objectives.
MICRO LEVEL STRATEGY:
The industrial and organizational turbulence engendered by technological change and increasing international competitive pressures provide threats and opportunities for firms. An effective strategic approach to technology allows firms to cope better with these changes, and reduces the threats and insecurities facing them and their employees. In particular, technology strategy must anticipate the transient impact of technological innovation on the future competencies of the corporation. An appropriate level of formal planning provides systematic and documented strategy. The inputs to the process occur through participation of staff and line management and of special planning groups. Technology scenarios should help management focus on the interaction of changes between technology and change in markets, resources, regulation and competition.
IMPORTANCE OF TECHNOLOGY STRATEGY:
There are five issues which bear on the importance of corporate strategy for technology:
i) The need to cope with technology uncertainty.
ii) Complexity and discontinuous nature of technological development.
iii) The need for technology to be viewed in a global context.
iv) The need to attain complementarities, and
v) The relationship between corporate strategy technology and public technology policies.
LINKING BUSINESS AND TECHNOLOGY STRATEGY:
i) In what business should the firm engage in future?
ii) How should the firm be positioned in these businesses?
iii) What research, production and marketing will be necessary to attain those positions?
FORMULATING A TECHNOLOGY STRATEGY:
1. Identify all the distinct technologies and sub-technologies in the value chain.
2. Identify potentialy6 relevant technologies in other industries or those under scientific development.
3. Determine the likely path of change o f key technologies.
4. Determine which technologies and potential technological changes are most significant for competitive advantage and industry structure.
5. Assess a firm’s relative capabilities in important technologies and the cost of making improvements.
6. Select a technology strategy, encompassing all important technologies, that reinforces the firm’s overall completive strategy.
7. Reinforce business unit technology strategy at the corporate level.
The strategy actually implies long-term, purposeful and interconnected efforts, while tactics implies action to deal with immediate specific problems. (Strategy is an antonym of tactics). Technology strategy is defined as a strategy to deal with the technology and related issues at macro and micro levels, with respect to set objectives.
MACRO LEVEL STRATEGY:
At macro level, each country outlines and adopts a technology strategy to achieve its political, economic, and social objectives and translated the same into action through appropriate policies and mechanisms.
For example, US may adopt of excel in “defense” or “warfare technologies” or in generation of first stage new technologies for knowledge-based industries, while Japan may excel in technologies for consumer products of newer designs at lower costs. Korea may decide to adopt and upgrade imported technologies using mass production techniques for consumer products without really caring much for aesthetic or high quality levels, and without bothering for defense or other strategic applications. On the other hand, India may decide to develop its own capabilities in strategic areas such as defense, atomic energy and space where technologies are usually closely guarded or for maximum utilization of its own resources. It may thus train S&T manpower, generate employment, promote rural development, and check population. Thus, technology strategies may vary with the national perspectives, and accordingly policies and mechanisms are evolved and implements. Financial resources play and important role in evolving the technology strategies. Depending on the resources available and the will of the government, the policies are evolved, mechanisms are set up and measures are taken to ensure the achievement of the set objectives.
MICRO LEVEL STRATEGY:
The industrial and organizational turbulence engendered by technological change and increasing international competitive pressures provide threats and opportunities for firms. An effective strategic approach to technology allows firms to cope better with these changes, and reduces the threats and insecurities facing them and their employees. In particular, technology strategy must anticipate the transient impact of technological innovation on the future competencies of the corporation. An appropriate level of formal planning provides systematic and documented strategy. The inputs to the process occur through participation of staff and line management and of special planning groups. Technology scenarios should help management focus on the interaction of changes between technology and change in markets, resources, regulation and competition.
IMPORTANCE OF TECHNOLOGY STRATEGY:
There are five issues which bear on the importance of corporate strategy for technology:
i) The need to cope with technology uncertainty.
ii) Complexity and discontinuous nature of technological development.
iii) The need for technology to be viewed in a global context.
iv) The need to attain complementarities, and
v) The relationship between corporate strategy technology and public technology policies.
LINKING BUSINESS AND TECHNOLOGY STRATEGY:
i) In what business should the firm engage in future?
ii) How should the firm be positioned in these businesses?
iii) What research, production and marketing will be necessary to attain those positions?
FORMULATING A TECHNOLOGY STRATEGY:
1. Identify all the distinct technologies and sub-technologies in the value chain.
2. Identify potentialy6 relevant technologies in other industries or those under scientific development.
3. Determine the likely path of change o f key technologies.
4. Determine which technologies and potential technological changes are most significant for competitive advantage and industry structure.
5. Assess a firm’s relative capabilities in important technologies and the cost of making improvements.
6. Select a technology strategy, encompassing all important technologies, that reinforces the firm’s overall completive strategy.
7. Reinforce business unit technology strategy at the corporate level.
TECHNOLOGY ABSORPTION
TECHNOLOGY ABSORPTION:
ADOPTION:
It is the process under which the various features of the technology which is the subject of transfer are suitably modified, changed or altered keeping in the view the needs of the buyer. In other words, the needs of the buyer of technology get crystallized and the supplier makes suitable modifications in the technology being supplied so that it conforms, as far as possible, to the requirements of the buyer
ADAPTION:
l It is a phase that takes place after a technology has been adopted and put into use in production activities/facilities. During this stage, a number of alterations and modifications to suit the indigenous conditions are made and they may relate to the use of raw materials/components manufactured. It covers both product modifications as well as production technology changes, using indigenous skills as well as local materials.
ABSORPTION:
l It involves ‘Know-why’ exercises, basic investigations into the product and or process and or systems. This will require unpack aging of a technology package. It requires R&D projects in know-why, optimization and improvement of product/process/systems and related equipments.
OPTIMISATION:
l It is the effective savings in the use of material and energy consumption both in product and processes which constitute optimization of technology.
STAGES IN TECHNOLOGY ABSORPTION:
PROJECT FORMULATION:
• Prefeasibility report/project report
l Technology negotiations
l Approvals/clearances with Government
l Foreign collaboration agencies
l Funds from financial institutions
l Land Acquisition
l Clearances from State Govt. and other bodies for power etc
PROJECT EXECUTION:
l Technology Transfer.
l Design/know-how, experts, training
l Use of Indian consultants
l Procurement of equipments, components and materials.
l Payments for technology, RM, and equipments.
l Project implementation.
TECHNOLOGY ADAPTION:
l Trial runs
l Debottlenecking /rectifications
l Production based on selective imports of components/RM
l Indigenization of RM/ components, equipments.
l Adjust product/process technology to suit local conditions.
TECHNOLOGY ABSORPTION:
l Analyze and unpackaged technology
l Investigate product/process designs and technology.
l Optimize technology for higher quality and performance.
l Design; develop components/raw materials/equipments.
l Use research linkages.
TECHNOLOGY IMPROVEMENT AND UPGRADATION:
l Improve product/process designs and technology for better performance/utilization.
l Use Research linkages.
l Upgrade product/process to reach larger scales/capabilities.
Benefits of technology Absorption and up gradation
l Repeated collaborations for the same product/process are avoided.
l Acquisition of further technologies becomes selective.
l Ability is developed to unpackaged technology.
l Savings can be affected in foreign exchange.
l Effective utilization can be made to achieve desired results.
l Exports are increased.
l Know-why and technology up gradation capabilities are built up.
l Technically competent groups of scientists and engineers trained in technology absorption get matured and strengthened.
l The base for technological self-reliance is enhanced.
l Product and Process cost saving can be done.
l Increase in sales and profits.
Future Thrust for Technology absorption
l Industry should attempt to obtain best available technology closest to international trends and provide R&D at the stage of project planning.
l Speedy indigenization of raw materials and components.
l Efforts for unpack aging of tailor-made equipments in the acquired technology
Suggested measures for technological absorption in Indian Industry
l The units should have their own technology policy for its acquistion, absorption and adaptation, on long-term as well as short-term basis.
l Travel grants and incentives may be considered for participation in international seminars. symposia etc. as well as for training abroad to keep abreast with the latest development in their fields
l The R&D personnel from in-house/national laboratories etc. should be involved intimately in the transfer of technology from the conceptual stage itself.
l Incentives and support should be given for prototype development and testing facilities, pilot studies etc. for adaptation, absorption and up gradation of imported technologies.
l International R&D collaborations can be encouraged
l Information about the acquisition of foreign technologies should be widely disseminated with a view to making R&D personnel aware of the needs of the industry. It enables them to formulate the programmed accordingly.
l Tax benefits and fiscal incentives may be considered for investments made in absorption and up gradation of processes/products.
l An information base for modern available technologies on global basis should be setup
l In case of Fast technologies such as electronics, foreign collaboration agreements should be of shorter durations.
l The standards for various products, components and materials need to be revised and updated on continuous basis particularly for industries like automobiles.
l A complete documentation of all the national research facilities may be compiled with regard to their activities and developments carried out by them.
l A periodical review meeting of the R&D chiefs of the industrial units to discuss technology absorption efforts may be organized.
l Incentives should be given to firms for adhering and following a faster phased manufacturing programmed as specified in the collaboration agreement.
l A time-bound programmed for absorption and adaptation of imported technology should be drawn by the company after the collaboration agreement.
l Involvement of Senior R&D personnel in negotiations and acquisition of technology.
l User’s support for development and speedy utilization of absorbed and upgraded product.
l Setting up of research advisory committees by major companies, importing high cost and complex technologies.
l Support by Government to catalyze the above efforts of industry to ensure effective and complete absorption of imported technology
ADOPTION:
It is the process under which the various features of the technology which is the subject of transfer are suitably modified, changed or altered keeping in the view the needs of the buyer. In other words, the needs of the buyer of technology get crystallized and the supplier makes suitable modifications in the technology being supplied so that it conforms, as far as possible, to the requirements of the buyer
ADAPTION:
l It is a phase that takes place after a technology has been adopted and put into use in production activities/facilities. During this stage, a number of alterations and modifications to suit the indigenous conditions are made and they may relate to the use of raw materials/components manufactured. It covers both product modifications as well as production technology changes, using indigenous skills as well as local materials.
ABSORPTION:
l It involves ‘Know-why’ exercises, basic investigations into the product and or process and or systems. This will require unpack aging of a technology package. It requires R&D projects in know-why, optimization and improvement of product/process/systems and related equipments.
OPTIMISATION:
l It is the effective savings in the use of material and energy consumption both in product and processes which constitute optimization of technology.
STAGES IN TECHNOLOGY ABSORPTION:
PROJECT FORMULATION:
• Prefeasibility report/project report
l Technology negotiations
l Approvals/clearances with Government
l Foreign collaboration agencies
l Funds from financial institutions
l Land Acquisition
l Clearances from State Govt. and other bodies for power etc
PROJECT EXECUTION:
l Technology Transfer.
l Design/know-how, experts, training
l Use of Indian consultants
l Procurement of equipments, components and materials.
l Payments for technology, RM, and equipments.
l Project implementation.
TECHNOLOGY ADAPTION:
l Trial runs
l Debottlenecking /rectifications
l Production based on selective imports of components/RM
l Indigenization of RM/ components, equipments.
l Adjust product/process technology to suit local conditions.
TECHNOLOGY ABSORPTION:
l Analyze and unpackaged technology
l Investigate product/process designs and technology.
l Optimize technology for higher quality and performance.
l Design; develop components/raw materials/equipments.
l Use research linkages.
TECHNOLOGY IMPROVEMENT AND UPGRADATION:
l Improve product/process designs and technology for better performance/utilization.
l Use Research linkages.
l Upgrade product/process to reach larger scales/capabilities.
Benefits of technology Absorption and up gradation
l Repeated collaborations for the same product/process are avoided.
l Acquisition of further technologies becomes selective.
l Ability is developed to unpackaged technology.
l Savings can be affected in foreign exchange.
l Effective utilization can be made to achieve desired results.
l Exports are increased.
l Know-why and technology up gradation capabilities are built up.
l Technically competent groups of scientists and engineers trained in technology absorption get matured and strengthened.
l The base for technological self-reliance is enhanced.
l Product and Process cost saving can be done.
l Increase in sales and profits.
Future Thrust for Technology absorption
l Industry should attempt to obtain best available technology closest to international trends and provide R&D at the stage of project planning.
l Speedy indigenization of raw materials and components.
l Efforts for unpack aging of tailor-made equipments in the acquired technology
Suggested measures for technological absorption in Indian Industry
l The units should have their own technology policy for its acquistion, absorption and adaptation, on long-term as well as short-term basis.
l Travel grants and incentives may be considered for participation in international seminars. symposia etc. as well as for training abroad to keep abreast with the latest development in their fields
l The R&D personnel from in-house/national laboratories etc. should be involved intimately in the transfer of technology from the conceptual stage itself.
l Incentives and support should be given for prototype development and testing facilities, pilot studies etc. for adaptation, absorption and up gradation of imported technologies.
l International R&D collaborations can be encouraged
l Information about the acquisition of foreign technologies should be widely disseminated with a view to making R&D personnel aware of the needs of the industry. It enables them to formulate the programmed accordingly.
l Tax benefits and fiscal incentives may be considered for investments made in absorption and up gradation of processes/products.
l An information base for modern available technologies on global basis should be setup
l In case of Fast technologies such as electronics, foreign collaboration agreements should be of shorter durations.
l The standards for various products, components and materials need to be revised and updated on continuous basis particularly for industries like automobiles.
l A complete documentation of all the national research facilities may be compiled with regard to their activities and developments carried out by them.
l A periodical review meeting of the R&D chiefs of the industrial units to discuss technology absorption efforts may be organized.
l Incentives should be given to firms for adhering and following a faster phased manufacturing programmed as specified in the collaboration agreement.
l A time-bound programmed for absorption and adaptation of imported technology should be drawn by the company after the collaboration agreement.
l Involvement of Senior R&D personnel in negotiations and acquisition of technology.
l User’s support for development and speedy utilization of absorbed and upgraded product.
l Setting up of research advisory committees by major companies, importing high cost and complex technologies.
l Support by Government to catalyze the above efforts of industry to ensure effective and complete absorption of imported technology
TECHNOLOGY FORECASTING
TECHNOLOGY FORECASTING:
Necessity of technology Forecasting.
Role of Technology Forecasting
Classification of Technology Forecasting approaches
Technology Forecast and Technology innovation Chain
Technological Forecasting Methods\
DEFINITIONS:
n Tech forecast deals with certain characteristics such as levels of technical performance, rate of technological advances.
n Tech forecasting also deals with useful machines, procedures or techniques.
Technological forecast is a prediction of the future characteristics of useful machines, products, processes, procedures or techniques.…
n Basic scientific findings/discovery of a principle
n Laboratory or bench level feasibility
n Operating prototype/pilot plant
n Commercial introduction or operational use
n Widespread adoption
n Diffusion to other areas
n Social and economic impact
Necessity of Tech Forecasting
n Scanning the technological environment
n Anticipating emerging technological changes,
n Identifying suitable technologies by evaluating alternatives,
n Planning for technologies for future needs.
There are four elements of a forecast which can be specified and estimated.
1) The time period
2) The nature of technology
3) The characteristics to be exhibited by the technology,
4) The probability associated with the characteristics
Role of tech forecasting
n It identifies limits beyond which it is note possible to go,
n It establishes feasible rates of progress,
n It describes the alternatives which are open and can be chosen from,
n It indicates possibilities which might be achieved, if desired,
n It provides a reference standard for the plan
n It furnishes warning signals, which can alert the decision maker.
Classification of tech forecasting approaches:
n Exploratory forecasting transcends into the future from the past performance or experience. Its techniques deal with analysis of technological capability, features of the past, evaluation of the present, looking forward to the future.
n Normative forecasting begins from the future and works out desired landmarks backwards to the present state. In other words, the mind is projected into the future by postulating a desired or possible state of technological development to satisfy a specific need.
FORECASTING METHODS
n BRAIN STORMING
n DELPHI TECHNIQUE
n TECHNOLOGY MONITORING
n GROWTH CURVES
n RELEVANCE TREES
n MORPHOLOGICAL ANALYSIS
BRAINSTORMING:
It is conducted by a group of people who attempt to forecast about a specific technology by collecting/contributing all the ideas spontaneously. It is to stimulate the generation of ideas on a given technology. Ideas are formed/offered spontaneously in a relatively unstructured environment
Steps involved in Brainstorming
n Step 1: Identification of a person as the group leader. He must have requisite experience of integrating or channeling the ideas to lead to solution.
n Step 2: Identification of the problem by a group so that multiple dimensions of the problem involved are clearly highlighted.
n Step 3: Definition and redefinition of the problem so that it is unambiguously understood by the group.
n Step 4: Idea generation process is initiated. Once a number of ideas are collected, a number of triggering questions are initiated to help combine ideas or approaches.
n Step 5: The recorded ideas are reviewed, classified and streamlined into related ideas and clusters.
n Step 6 : Rearranged ideas are evaluated possibly through a series of eliminating questions
Group to be effective, has to have a variety of people such as:
n Users of technology
n Experts, knowledgeable in technology
n Experts, knowledgeable about market
n Economists/financial analysts
n Dreamers with new ideas
n Persuaders who can help acceptance of an idea
n Technology forecasters
n Consultants
Applications of Brainstorming
n For obtaining new ideas of products/process/services/procedures
n For identifying new uses on market segments
n For overcoming bottlenecks
n For identifying alternative options or methods.
Advantages and Disadvantages:
n It is easy to organize and resources needed are modest.
n But it requires and experienced person to conduct it.
n Sufficient time is needed for organizing a brainstorming exercise.
n Further considerable preparation has to be made before the actual exercise begins.
DELPHI TECHNIQUE:
n When there is no historical data, especially situations in which new technologies are involved, expert opinion is the only possible source for a forecast,
n When impact of external factors is more important than the factors that governed the previous development of the technology
n When ethical considerations rather than technical and economic considerations govern the development of a technology.
Steps involved in Delphi technique:
n Step 1: Identify the specific area or field in which a Delphi exercise has to be carried out.
n Step 2: Identify a set of users, technology generators/experts, equipment manufactures, development bankers, and social scientists and others who can help in preparing a set of questions for forecasting technological developments in the given area.
n Step 3: A small core group is formed to prepare questionnaire with the help of persons at its feasibility, time frame and resources needed for commercial use and impact.
n Step 4: the questionnaire is then administered to a number of participants to cover a wide cross-section of interests.
n Step 5: The first round questionnaire is obtained and processed wherein minority views are also included.
n Step 6: The second round questionnaire, containing the processed responses of the first round questionnaire, is sent back to the participants to give their revised comments.
n Step 7: The second round results are then processed to get the consensus results.
Applications of Delphi technique:
n identify new factors likely to influence the future state of technological development
n Obtain probabilistic estimates of technological performance over a specified time horizon
n Obtain forecasts of a time scale for an event where other methods cannot be used.
n Obtain subjective quantitative measures of technological performance in the absence of objective data
n Advantages: obtaining forecasts when there is a limited amount of historical data and for fields which are highly interactive and interdisciplinary involving diverse parameters such as social, technical, economic, political and managerial.
n Disadvantages: It does not have any logic underlying each prediction and if repeated, it may not give reproducible results and although it may produce a high degree of convergence, but there is no high degree of reliability.
Technology Monitoring
n Step 1: Information Scanning
n Step 2: Screening the scanned information
n Step 3: Evaluation of the screened information and development of ideas.
n Step 4: Utilization of the evaluated ideas for R&D planning, project formulations, product diversifications etc.
Information Scanning
n Competitor’s R&D plans, approach/ideas, manufacturing programme, marketing thrust/share, financial health etc.
n Environment/health of the industry/sector
n Government’s policies, incentives/disincentives, regulation/control
n Manpower capabilities: educational/skills development, R&D etc.
n Social attitudes/preferences/prejudices
n Demand and supply estimates.
Screening of the scanned information
It is essential that the information of relevance be identified, according to short and long term objectives of the organization, for detailed scrutiny and evaluation
Evaluation of the screened information and development of ideas
n The forecaster would be in a position, depending on the trend/signal identified on a specific technological field, to advise the decision maker to embark on new plans for initiating appropriate action in areas like R&D/production/marketing/diversification of product range etc.
Utilization of evaluated ideas
n The decision maker would be in the position to get all relevant inputs i.e. technological forecast, government policies, financial commitments, business environs etc. in order to make up his mind as to whether particular course of action could be pursued or not.
Applications
Technology monitoring is a useful tool for anticipating changes through continuously monitoring the signals of change, especially in the following:
n To plan R&D
n To obtain new ideas on products/process/technology
n To identify areas or corporate diversification/investment/collaboration
n To identify possible sources for technology acquisition/licensing.
Relevance Trees
n Step 1: Arrange in hierarchical order the objectives, sub objectives, activities, missions or tasks.
n Step 2: Ensure all possible ways of achieving the objectives have been included or assessed.
n Step 3: Evaluate the relevance of individual tasks and sub-objectives to the overall objectives.
Advantages and Disadvantages
n Provides systematic method for assessing the route to be used for achieving a defined future objective or solving a given problem.
n Helps in deciding whether an objective is likely to be achieved or not,
n Helps in determining alternative ways by which a given objective might be achieved.
n Ensure that adequate and appropriate attention is applied to all tasks and activities depending on their relevance.
n The relevance tree for a large complex technology will be complicated to be handled.
Necessity of technology Forecasting.
Role of Technology Forecasting
Classification of Technology Forecasting approaches
Technology Forecast and Technology innovation Chain
Technological Forecasting Methods\
DEFINITIONS:
n Tech forecast deals with certain characteristics such as levels of technical performance, rate of technological advances.
n Tech forecasting also deals with useful machines, procedures or techniques.
Technological forecast is a prediction of the future characteristics of useful machines, products, processes, procedures or techniques.…
n Basic scientific findings/discovery of a principle
n Laboratory or bench level feasibility
n Operating prototype/pilot plant
n Commercial introduction or operational use
n Widespread adoption
n Diffusion to other areas
n Social and economic impact
Necessity of Tech Forecasting
n Scanning the technological environment
n Anticipating emerging technological changes,
n Identifying suitable technologies by evaluating alternatives,
n Planning for technologies for future needs.
There are four elements of a forecast which can be specified and estimated.
1) The time period
2) The nature of technology
3) The characteristics to be exhibited by the technology,
4) The probability associated with the characteristics
Role of tech forecasting
n It identifies limits beyond which it is note possible to go,
n It establishes feasible rates of progress,
n It describes the alternatives which are open and can be chosen from,
n It indicates possibilities which might be achieved, if desired,
n It provides a reference standard for the plan
n It furnishes warning signals, which can alert the decision maker.
Classification of tech forecasting approaches:
n Exploratory forecasting transcends into the future from the past performance or experience. Its techniques deal with analysis of technological capability, features of the past, evaluation of the present, looking forward to the future.
n Normative forecasting begins from the future and works out desired landmarks backwards to the present state. In other words, the mind is projected into the future by postulating a desired or possible state of technological development to satisfy a specific need.
FORECASTING METHODS
n BRAIN STORMING
n DELPHI TECHNIQUE
n TECHNOLOGY MONITORING
n GROWTH CURVES
n RELEVANCE TREES
n MORPHOLOGICAL ANALYSIS
BRAINSTORMING:
It is conducted by a group of people who attempt to forecast about a specific technology by collecting/contributing all the ideas spontaneously. It is to stimulate the generation of ideas on a given technology. Ideas are formed/offered spontaneously in a relatively unstructured environment
Steps involved in Brainstorming
n Step 1: Identification of a person as the group leader. He must have requisite experience of integrating or channeling the ideas to lead to solution.
n Step 2: Identification of the problem by a group so that multiple dimensions of the problem involved are clearly highlighted.
n Step 3: Definition and redefinition of the problem so that it is unambiguously understood by the group.
n Step 4: Idea generation process is initiated. Once a number of ideas are collected, a number of triggering questions are initiated to help combine ideas or approaches.
n Step 5: The recorded ideas are reviewed, classified and streamlined into related ideas and clusters.
n Step 6 : Rearranged ideas are evaluated possibly through a series of eliminating questions
Group to be effective, has to have a variety of people such as:
n Users of technology
n Experts, knowledgeable in technology
n Experts, knowledgeable about market
n Economists/financial analysts
n Dreamers with new ideas
n Persuaders who can help acceptance of an idea
n Technology forecasters
n Consultants
Applications of Brainstorming
n For obtaining new ideas of products/process/services/procedures
n For identifying new uses on market segments
n For overcoming bottlenecks
n For identifying alternative options or methods.
Advantages and Disadvantages:
n It is easy to organize and resources needed are modest.
n But it requires and experienced person to conduct it.
n Sufficient time is needed for organizing a brainstorming exercise.
n Further considerable preparation has to be made before the actual exercise begins.
DELPHI TECHNIQUE:
n When there is no historical data, especially situations in which new technologies are involved, expert opinion is the only possible source for a forecast,
n When impact of external factors is more important than the factors that governed the previous development of the technology
n When ethical considerations rather than technical and economic considerations govern the development of a technology.
Steps involved in Delphi technique:
n Step 1: Identify the specific area or field in which a Delphi exercise has to be carried out.
n Step 2: Identify a set of users, technology generators/experts, equipment manufactures, development bankers, and social scientists and others who can help in preparing a set of questions for forecasting technological developments in the given area.
n Step 3: A small core group is formed to prepare questionnaire with the help of persons at its feasibility, time frame and resources needed for commercial use and impact.
n Step 4: the questionnaire is then administered to a number of participants to cover a wide cross-section of interests.
n Step 5: The first round questionnaire is obtained and processed wherein minority views are also included.
n Step 6: The second round questionnaire, containing the processed responses of the first round questionnaire, is sent back to the participants to give their revised comments.
n Step 7: The second round results are then processed to get the consensus results.
Applications of Delphi technique:
n identify new factors likely to influence the future state of technological development
n Obtain probabilistic estimates of technological performance over a specified time horizon
n Obtain forecasts of a time scale for an event where other methods cannot be used.
n Obtain subjective quantitative measures of technological performance in the absence of objective data
n Advantages: obtaining forecasts when there is a limited amount of historical data and for fields which are highly interactive and interdisciplinary involving diverse parameters such as social, technical, economic, political and managerial.
n Disadvantages: It does not have any logic underlying each prediction and if repeated, it may not give reproducible results and although it may produce a high degree of convergence, but there is no high degree of reliability.
Technology Monitoring
n Step 1: Information Scanning
n Step 2: Screening the scanned information
n Step 3: Evaluation of the screened information and development of ideas.
n Step 4: Utilization of the evaluated ideas for R&D planning, project formulations, product diversifications etc.
Information Scanning
n Competitor’s R&D plans, approach/ideas, manufacturing programme, marketing thrust/share, financial health etc.
n Environment/health of the industry/sector
n Government’s policies, incentives/disincentives, regulation/control
n Manpower capabilities: educational/skills development, R&D etc.
n Social attitudes/preferences/prejudices
n Demand and supply estimates.
Screening of the scanned information
It is essential that the information of relevance be identified, according to short and long term objectives of the organization, for detailed scrutiny and evaluation
Evaluation of the screened information and development of ideas
n The forecaster would be in a position, depending on the trend/signal identified on a specific technological field, to advise the decision maker to embark on new plans for initiating appropriate action in areas like R&D/production/marketing/diversification of product range etc.
Utilization of evaluated ideas
n The decision maker would be in the position to get all relevant inputs i.e. technological forecast, government policies, financial commitments, business environs etc. in order to make up his mind as to whether particular course of action could be pursued or not.
Applications
Technology monitoring is a useful tool for anticipating changes through continuously monitoring the signals of change, especially in the following:
n To plan R&D
n To obtain new ideas on products/process/technology
n To identify areas or corporate diversification/investment/collaboration
n To identify possible sources for technology acquisition/licensing.
Relevance Trees
n Step 1: Arrange in hierarchical order the objectives, sub objectives, activities, missions or tasks.
n Step 2: Ensure all possible ways of achieving the objectives have been included or assessed.
n Step 3: Evaluate the relevance of individual tasks and sub-objectives to the overall objectives.
Advantages and Disadvantages
n Provides systematic method for assessing the route to be used for achieving a defined future objective or solving a given problem.
n Helps in deciding whether an objective is likely to be achieved or not,
n Helps in determining alternative ways by which a given objective might be achieved.
n Ensure that adequate and appropriate attention is applied to all tasks and activities depending on their relevance.
n The relevance tree for a large complex technology will be complicated to be handled.
PRICING OF TECHNOLOGY
PRICING OF TECHNOLOGY:
CATEGORIES OF PAYMENTS: Payments for the technology may be divided into three broad categories, although in practice an agreement may involve a combination of all three: lump sum payment, royalties and fees.
LUMP SUM PAYMENT:
Lump sum payments are calculated in advance through the agreed sum may be paid in installments. This method may be appropriate where it is desired to obtain the technology by outright purchase. It may also be a means of obtaining the data on a patented process. Traditional reasons for down payment or lump payments are as follows:
Down payment is a transfer cost representing the specific costs borne by the licensor to prepare a “technology package” for the licensee. Costs could arise form preparing drawings, specification lists, operating manuals, on-site training of personnel etc.
ROYALTIES:
Payments are made for the use of all forms of industrial property rights, the ownership rights, the ownership rights of which are established by national statutory law (patent, trade mark, copyright) civil law or international consensus. Royalties may be paid as a percentage of sales value, whether the technology is in the forms of know-how or the use of patented equipment/process of production.
FEES:
Fee for technology which may be remunerated specifically include training, whether in the licensor’s or in the licensee’s works, the position for technical experts required to introduce the technology and fee for expert assistance in the setting up of associated research and development, design and engineering services.
The basic principles of governing the acquisition of technology were:
Import of technology and foreign investment in this regard, were to be continued to be permitted in a selective basis where; need had been established, technology indigenously was likely to delay the achievements of development targets.
Government form time to time, would identity such as areas of high national priority, in respect of which procedures would be simplified further to ensure timely acquisition of the required technology.
CATEGORIES OF PAYMENTS: Payments for the technology may be divided into three broad categories, although in practice an agreement may involve a combination of all three: lump sum payment, royalties and fees.
LUMP SUM PAYMENT:
Lump sum payments are calculated in advance through the agreed sum may be paid in installments. This method may be appropriate where it is desired to obtain the technology by outright purchase. It may also be a means of obtaining the data on a patented process. Traditional reasons for down payment or lump payments are as follows:
Down payment is a transfer cost representing the specific costs borne by the licensor to prepare a “technology package” for the licensee. Costs could arise form preparing drawings, specification lists, operating manuals, on-site training of personnel etc.
ROYALTIES:
Payments are made for the use of all forms of industrial property rights, the ownership rights, the ownership rights of which are established by national statutory law (patent, trade mark, copyright) civil law or international consensus. Royalties may be paid as a percentage of sales value, whether the technology is in the forms of know-how or the use of patented equipment/process of production.
FEES:
Fee for technology which may be remunerated specifically include training, whether in the licensor’s or in the licensee’s works, the position for technical experts required to introduce the technology and fee for expert assistance in the setting up of associated research and development, design and engineering services.
The basic principles of governing the acquisition of technology were:
Import of technology and foreign investment in this regard, were to be continued to be permitted in a selective basis where; need had been established, technology indigenously was likely to delay the achievements of development targets.
Government form time to time, would identity such as areas of high national priority, in respect of which procedures would be simplified further to ensure timely acquisition of the required technology.
Technology Transfer
Technology Transfer: It is acquisition and use of knowledge. Basically there are two ways of acquiring new technology.
Develop it or purchase.
Technology Transfer
The important reasons for purchasing technology.
It involves little or no R &D investment.
Technology can be used quickly.
Technical and financial risks are quite low.
Good reasons for selling technology.
Increasing return on R&D investment.
Technology may not have immediate use.
Technologies have been utilized up to its limit.
Therefore technology transfer occurs because if existence of buyers and sellers. The sellers are called transfers or licensors and buyers are called transferees or licensees in technology transfer process.
There is no transfer of technology unless and until the technology knowledge is put to use.
The factor in technology transfer include
· Transplantation of technology
· A sense of opportunism
· Nature of transferred technology how it is transferred is critical to success of technology transfer process.
Models of Technology Transfer:
Research Development
Key entities
Diffusion Adaption
(R&D Diffusion Model)
Need Felt
Application of solution Articulated as
Problem
Choice of Solution Search for solutions
Problem solver Model
Technology Transfer Model:
Adaption
Development Communication Utilization
Technical Transfer Modes:
Technology Base User / Needs Public sectors
Engineering Technology Traffic safety
Communication Transfer Emergency Health
Medicine Modes Crime Prevention
Electronics Public Transport
Energy Preserving Water
(Passive/ Energy conserve
Active/Semi active) Urban constrn
Private Sectors
Structures Industries
Chemicals Agricultural
Materials Mining
Computer
Passive Mode: For the technology is transferred through published literature, manuals, such as television repair manuals and how to guide for home repairs.
TECHNOLOGY BASE TECHNICAL INFORMATION USER
*PRIMARY
INNOVATOR
* PUBLICATIONS FOR APPLN OF
TECHNOLOGY
* COMPUTERISED
DATABASES
* PERSONAL CONTACTS
Semi-active mode: Here the role of technology transfer agents is limited, the agent act as a interpreter or communicator no active participation in the application of technology.
TECH BASE TECH INFORMN TECH TRAN AGENT USER
Active mode: The transferring process is carried out to demonstrate by the transfer agent or the consultant. Agent fully involved and acts as a bridge in technology transfer from enterprise.
TECH BASE TECH INFORMN CHAMPION AND TEAM USER
Horizontal transfer: It implies transfer of technology from one firm to another. Such transfers take place generally between the firms located in different countries, mainly due to reasons of competition and maturity of technologies.
Vertical transfer: It means transfer of technology from an R&D organization to a firm. Such transfers are mostly within the country and technologies are new, and may often require further efforts in terms of establishing commercial viability. Such a transfer involves considerable risk.
DIMENSIONS OF TECHNOLOGY TRANSFER:
· What is actually transferred
· The mode of transfer
· The absorption capabilities of the recipient enterprise.
· The capabilities and motivation of the supplier enterprise and
· The technology gap between the supplier and the recipient.
FEATURES OF TECHNOLOGY PACKAGE:
The technology package consists of three principal elements namely, product design, production technique and management system. The three principal categories of technical information or know-how inherent in technological systems are general knowledge, system specific and firm-specific knowledge.
1) General Knowledge refers to information common to industry such as blueprint reading, tool and fixture design and fabrication, welding techniques etc.
2) Systems specific knowledge refers to information and industrial capability within a firm that gives it a competitive advantage over rival firms. This knowledge and know-how may consist of special solutions or procedures to a problem, acquired in the previous manufacturing experience in related product or process fields.
3) Firm specific knowledge differs from system specific in that cannot be attributed to a particular production item and usually results from the firm’s overall activities in such as gray-iron casting or their material fields.
ROUTES OF TECHNOLOGY TRANSFER:
The principal routes of enterprise-enterprise technology transfer are:
Licensing or franchise: Licensing and Franchise arrangements vary from a complete package of instructions, technical assistance and training to mere permission for the manufacture and sale of a product.
Suppliers of Materials and Parts: Suppliers of materials and parts are often willing to provide a full range of technical support, information and manufacturing know-how, and thy can be as effective in know-how transfer as in industrial licensing arrangements. The manufacturing of color TV sets in India is a classic example of this type.
Equipment Supplier: A variety of technical services are provided by equipment suppliers, including operational and maintenance procedures and even processing know-how . Some technologies are machine based and therefore the know-how is transferred along with supply of plant and equipment.
Outright purchase e.g., of turnkey plants or of complete manufacturing and operating specifications, drawings, know-ho, performance data and technical assistance.
Acquisition of the company or business owning the technology.
Joint ventures with the technology owners.
Franchising of trademarks and technical, management, and marketing know-how.
Combinations and variations of any of the above.
Develop it or purchase.
Technology Transfer
The important reasons for purchasing technology.
It involves little or no R &D investment.
Technology can be used quickly.
Technical and financial risks are quite low.
Good reasons for selling technology.
Increasing return on R&D investment.
Technology may not have immediate use.
Technologies have been utilized up to its limit.
Therefore technology transfer occurs because if existence of buyers and sellers. The sellers are called transfers or licensors and buyers are called transferees or licensees in technology transfer process.
There is no transfer of technology unless and until the technology knowledge is put to use.
The factor in technology transfer include
· Transplantation of technology
· A sense of opportunism
· Nature of transferred technology how it is transferred is critical to success of technology transfer process.
Models of Technology Transfer:
Research Development
Key entities
Diffusion Adaption
(R&D Diffusion Model)
Need Felt
Application of solution Articulated as
Problem
Choice of Solution Search for solutions
Problem solver Model
Technology Transfer Model:
Adaption
Development Communication Utilization
Technical Transfer Modes:
Technology Base User / Needs Public sectors
Engineering Technology Traffic safety
Communication Transfer Emergency Health
Medicine Modes Crime Prevention
Electronics Public Transport
Energy Preserving Water
(Passive/ Energy conserve
Active/Semi active) Urban constrn
Private Sectors
Structures Industries
Chemicals Agricultural
Materials Mining
Computer
Passive Mode: For the technology is transferred through published literature, manuals, such as television repair manuals and how to guide for home repairs.
TECHNOLOGY BASE TECHNICAL INFORMATION USER
*PRIMARY
INNOVATOR
* PUBLICATIONS FOR APPLN OF
TECHNOLOGY
* COMPUTERISED
DATABASES
* PERSONAL CONTACTS
Semi-active mode: Here the role of technology transfer agents is limited, the agent act as a interpreter or communicator no active participation in the application of technology.
TECH BASE TECH INFORMN TECH TRAN AGENT USER
Active mode: The transferring process is carried out to demonstrate by the transfer agent or the consultant. Agent fully involved and acts as a bridge in technology transfer from enterprise.
TECH BASE TECH INFORMN CHAMPION AND TEAM USER
Horizontal transfer: It implies transfer of technology from one firm to another. Such transfers take place generally between the firms located in different countries, mainly due to reasons of competition and maturity of technologies.
Vertical transfer: It means transfer of technology from an R&D organization to a firm. Such transfers are mostly within the country and technologies are new, and may often require further efforts in terms of establishing commercial viability. Such a transfer involves considerable risk.
DIMENSIONS OF TECHNOLOGY TRANSFER:
· What is actually transferred
· The mode of transfer
· The absorption capabilities of the recipient enterprise.
· The capabilities and motivation of the supplier enterprise and
· The technology gap between the supplier and the recipient.
FEATURES OF TECHNOLOGY PACKAGE:
The technology package consists of three principal elements namely, product design, production technique and management system. The three principal categories of technical information or know-how inherent in technological systems are general knowledge, system specific and firm-specific knowledge.
1) General Knowledge refers to information common to industry such as blueprint reading, tool and fixture design and fabrication, welding techniques etc.
2) Systems specific knowledge refers to information and industrial capability within a firm that gives it a competitive advantage over rival firms. This knowledge and know-how may consist of special solutions or procedures to a problem, acquired in the previous manufacturing experience in related product or process fields.
3) Firm specific knowledge differs from system specific in that cannot be attributed to a particular production item and usually results from the firm’s overall activities in such as gray-iron casting or their material fields.
ROUTES OF TECHNOLOGY TRANSFER:
The principal routes of enterprise-enterprise technology transfer are:
Licensing or franchise: Licensing and Franchise arrangements vary from a complete package of instructions, technical assistance and training to mere permission for the manufacture and sale of a product.
Suppliers of Materials and Parts: Suppliers of materials and parts are often willing to provide a full range of technical support, information and manufacturing know-how, and thy can be as effective in know-how transfer as in industrial licensing arrangements. The manufacturing of color TV sets in India is a classic example of this type.
Equipment Supplier: A variety of technical services are provided by equipment suppliers, including operational and maintenance procedures and even processing know-how . Some technologies are machine based and therefore the know-how is transferred along with supply of plant and equipment.
Outright purchase e.g., of turnkey plants or of complete manufacturing and operating specifications, drawings, know-ho, performance data and technical assistance.
Acquisition of the company or business owning the technology.
Joint ventures with the technology owners.
Franchising of trademarks and technical, management, and marketing know-how.
Combinations and variations of any of the above.
Tuesday, January 8, 2008
Technology changes
At the level of technology
1. Technology developers which are firms involved in innovation in their pursuit of competitive advantage.
2. Technology facilitators who provide the resources for financing and executing the innovation efforts.
3. Customers who are interested in fruits of technology development.
4. Regulatory agents, government bodies who shape the firm of products and processes by establishing standards or specifications.
5. Stakeholders who may be the beneficiaries ( e.g. suppliers to the innovating firms ) or victims of technology change ( e.g. Industry become obsolete by technology change )
Technology change – Innovation, Imitation and adoption lies significant learning by firms both individually and collectively. Three ways of learning are:
1. Environmental surveillance through technical and market Intelligence. Technical Intelligence creates awareness within a firm about the availability of scientific and technical knowledge. Market Intelligence creates awareness of customer needs and market potential.
2. Experimentation within firms where by firms can learn problem solving by simulation and by trial and error. Both failures and successes during innovation provides rich avenues of learning about what works and what does not.
3. Imitation through competitive Intelligence means learning from competitors about successful and unsuccessful attempts may enable a firm to learn without investment.
IMITATION Supply side (Competitors )
ADOPTION
INNOVATION
Demand side (Consumers )
INNOVATION means to renew to make new or to alter.
· A technology change new to both enterprise and economy (e.g. PC by Apple )
· A change that has diffused into economy and is adopted by the firm ( adoption of computers by printing firms to typesetting services )
· Innovation refers both to the output and process of arriving at a technologically feasible solution to a problem triggered by a technological opportunity or customer needs.
· Innovation refers to the process by which individuals or organizations arrive at a technical solution
· Innovation refers to a product or service.
COMPONENTS OF INNOVATION:
· A hardware component consisting of the physical aspects of innovation.
· A software component consisting of information based that is needed to use the innovation.
· An evaluation information component consisting of information that is useful for decisions related to adoption of innovation.
PROCESS OF INNOVATION :
Market pull : It is the advancement of technology oriented primarily toward a specific market need and secondarily towards technical performance.
Technology push : It is the advancement of technology oriented toward increased technology performance secondarily towards specific market needs.
CLASSIFICATION OF INNOVATIONS :
INCREMENTAL INNOVATIONS MODULAR INNOVATIONS
Product tech : Microprocessors Product tech : Mobile phones
Process tech : Continuous Improvement Process tech : Quality circles
ARCHITECTURAL INNOVATIONS RADICAL INNOVATIONS
Product tech : Interior decorations Product tech : CDS, Pen drives
Process tech : Just-in-time Inventories Process tech : Robotics in manufacturing
1. Technology developers which are firms involved in innovation in their pursuit of competitive advantage.
2. Technology facilitators who provide the resources for financing and executing the innovation efforts.
3. Customers who are interested in fruits of technology development.
4. Regulatory agents, government bodies who shape the firm of products and processes by establishing standards or specifications.
5. Stakeholders who may be the beneficiaries ( e.g. suppliers to the innovating firms ) or victims of technology change ( e.g. Industry become obsolete by technology change )
Technology change – Innovation, Imitation and adoption lies significant learning by firms both individually and collectively. Three ways of learning are:
1. Environmental surveillance through technical and market Intelligence. Technical Intelligence creates awareness within a firm about the availability of scientific and technical knowledge. Market Intelligence creates awareness of customer needs and market potential.
2. Experimentation within firms where by firms can learn problem solving by simulation and by trial and error. Both failures and successes during innovation provides rich avenues of learning about what works and what does not.
3. Imitation through competitive Intelligence means learning from competitors about successful and unsuccessful attempts may enable a firm to learn without investment.
IMITATION Supply side (Competitors )
ADOPTION
INNOVATION
Demand side (Consumers )
INNOVATION means to renew to make new or to alter.
· A technology change new to both enterprise and economy (e.g. PC by Apple )
· A change that has diffused into economy and is adopted by the firm ( adoption of computers by printing firms to typesetting services )
· Innovation refers both to the output and process of arriving at a technologically feasible solution to a problem triggered by a technological opportunity or customer needs.
· Innovation refers to the process by which individuals or organizations arrive at a technical solution
· Innovation refers to a product or service.
COMPONENTS OF INNOVATION:
· A hardware component consisting of the physical aspects of innovation.
· A software component consisting of information based that is needed to use the innovation.
· An evaluation information component consisting of information that is useful for decisions related to adoption of innovation.
PROCESS OF INNOVATION :
Market pull : It is the advancement of technology oriented primarily toward a specific market need and secondarily towards technical performance.
Technology push : It is the advancement of technology oriented toward increased technology performance secondarily towards specific market needs.
CLASSIFICATION OF INNOVATIONS :
INCREMENTAL INNOVATIONS MODULAR INNOVATIONS
Product tech : Microprocessors Product tech : Mobile phones
Process tech : Continuous Improvement Process tech : Quality circles
ARCHITECTURAL INNOVATIONS RADICAL INNOVATIONS
Product tech : Interior decorations Product tech : CDS, Pen drives
Process tech : Just-in-time Inventories Process tech : Robotics in manufacturing
Technology changes by innovation
TECHNOLOGY CHANGE: INNOVATION
Technology change can be described at two levels. at the level of the individual firm or at the level of the technology.
FIRM LEVEL:
It may be described as four stages in process of problem solving.
1. Problem recognition: Successful technological change begins when a firm recognizes the potential of a technology for new products or process, or when it recognizes a market need that needs to be fulfilled. When technical feasibility dominates design, we call the process as “technology push”. When market demand drives the process we call it “market pull”.
2. Technology selection: During this stage, the firm formulates several design concepts which are based on different technologies that will serve the market needs.
3. Solution development: In case of products, the may involve the development of prototype. In case of process innovation this may finalize a general approach or a blueprint for organizational change. Problem solving may be in two ways. A new solution is formulated within the innovation firm. or A ready made solution is adopted by the firm from outside.
4. Commercialization/Implementation: The economic benefits of an innovation are never fully realized until an item is actually introduced into the market or cost reductions from the process change are achieved.
PROBLEM
RECOGNITION
TECHNOLOGY
SELECTION
SOLUTION
DEVELOPMENT
COMMERCIALIZATION
Triggers Alternatives Mode of implementation Forms of change
Technology change can be described at two levels. at the level of the individual firm or at the level of the technology.
FIRM LEVEL:
It may be described as four stages in process of problem solving.
1. Problem recognition: Successful technological change begins when a firm recognizes the potential of a technology for new products or process, or when it recognizes a market need that needs to be fulfilled. When technical feasibility dominates design, we call the process as “technology push”. When market demand drives the process we call it “market pull”.
2. Technology selection: During this stage, the firm formulates several design concepts which are based on different technologies that will serve the market needs.
3. Solution development: In case of products, the may involve the development of prototype. In case of process innovation this may finalize a general approach or a blueprint for organizational change. Problem solving may be in two ways. A new solution is formulated within the innovation firm. or A ready made solution is adopted by the firm from outside.
4. Commercialization/Implementation: The economic benefits of an innovation are never fully realized until an item is actually introduced into the market or cost reductions from the process change are achieved.
PROBLEM
RECOGNITION
TECHNOLOGY
SELECTION
SOLUTION
DEVELOPMENT
COMMERCIALIZATION
Triggers Alternatives Mode of implementation Forms of change
Technology And Organisation Structure
IMPORTANCE OF TECHNOLOGY MANAGEMENT:
Technology and management of technology are critical for an enterprise for its successful operation on long-term basis. There are three basic considerations for starting any new firm based on technological innovation.
a) The idea for a technological innovation:
b) A potential market:
c) Team work in both technological and business enterprise:
The idea of a technological innovation should be based with the potential market and technology team should closely interact with the rest of divisions of the enterprise leading to successful logical conclusions in terms of products/processes to be developed as per the objectives set in the beginning. This strategy is reflected in the form of a “Business Plan” of and enterprise which needs to be prepared and approved before starting the new business.
The Business Plan: It is a strategic summary of new venture. Its purposes are:
i) To ensure, by clear focus in strategy, that important points necessary to the success of any business venture have been considered.
ii) To persuade financial investors to invest in the new venture. A new venture business plan could include the following :
a) Current business status
· Business objectives
· Management and organization
b) Products or Services
· Product description
· Technological background
· Competition
Benefits to customers
· Market
· Marketing strategy
c) Capitalization
· Capital requirements
· Financial forecasts
· Benefits to investors
Technology and Competition:
If technology is to give a competitive edge, management must manage it as a part of the business system. Technological innovation can be integrated with production, marketing, finance and personnel into a balanced business system. Managing technology essentially involves four central concepts:
a) New Ventures
b) Innovation
c) Research
d) Research Infrastructure
New Ventures: Ideas central to new venture are concerned with entrepreneurial management, overall business plan, and the dynamics of organizational growth.
Innovation: Ideas central to innovation include concepts such as types of innovation, processes of innovation, the technology S-curve, technology life cycle, economic life cycles, sources of innovation, business opportunities in a technological system, marketing and new technology, corporate diversification through new venture, and technology in manufacturing strategies.
Research: Technological change is new knowledge about what things to produce and how to produce them; and in the corporation, new knowledge often comes from corporate research. Research management includes organization of research, project management, research personnel, and corporate research strategy.
Research Infrastructure : With the expansion and increase of intensity of international competition, the R&D infrastructure of a nation plays a critical role in economic competition.
Managing technology is taking risks in novel products and developing new markets. In the world of rapid technological progress and changing competitive environments and market needs, firms must pay increasing attention to developing new innovative products for domestic and world markets, and therefore an efficient technology management system is important.
Technology and management of technology are critical for an enterprise for its successful operation on long-term basis. There are three basic considerations for starting any new firm based on technological innovation.
a) The idea for a technological innovation:
b) A potential market:
c) Team work in both technological and business enterprise:
The idea of a technological innovation should be based with the potential market and technology team should closely interact with the rest of divisions of the enterprise leading to successful logical conclusions in terms of products/processes to be developed as per the objectives set in the beginning. This strategy is reflected in the form of a “Business Plan” of and enterprise which needs to be prepared and approved before starting the new business.
The Business Plan: It is a strategic summary of new venture. Its purposes are:
i) To ensure, by clear focus in strategy, that important points necessary to the success of any business venture have been considered.
ii) To persuade financial investors to invest in the new venture. A new venture business plan could include the following :
a) Current business status
· Business objectives
· Management and organization
b) Products or Services
· Product description
· Technological background
· Competition
Benefits to customers
· Market
· Marketing strategy
c) Capitalization
· Capital requirements
· Financial forecasts
· Benefits to investors
Technology and Competition:
If technology is to give a competitive edge, management must manage it as a part of the business system. Technological innovation can be integrated with production, marketing, finance and personnel into a balanced business system. Managing technology essentially involves four central concepts:
a) New Ventures
b) Innovation
c) Research
d) Research Infrastructure
New Ventures: Ideas central to new venture are concerned with entrepreneurial management, overall business plan, and the dynamics of organizational growth.
Innovation: Ideas central to innovation include concepts such as types of innovation, processes of innovation, the technology S-curve, technology life cycle, economic life cycles, sources of innovation, business opportunities in a technological system, marketing and new technology, corporate diversification through new venture, and technology in manufacturing strategies.
Research: Technological change is new knowledge about what things to produce and how to produce them; and in the corporation, new knowledge often comes from corporate research. Research management includes organization of research, project management, research personnel, and corporate research strategy.
Research Infrastructure : With the expansion and increase of intensity of international competition, the R&D infrastructure of a nation plays a critical role in economic competition.
Managing technology is taking risks in novel products and developing new markets. In the world of rapid technological progress and changing competitive environments and market needs, firms must pay increasing attention to developing new innovative products for domestic and world markets, and therefore an efficient technology management system is important.
Importance of Technology management
IMPORTANCE OF TECHNOLOGY MANAGEMENT:
Technology and management of technology are critical for an enterprise for its successful operation on long-term basis. There are three basic considerations for starting any new firm based on technological innovation.
a) The idea for a technological innovation:
b) A potential market:
c) Team work in both technological and business enterprise:
The idea of a technological innovation should be based with the potential market and technology team should closely interact with the rest of divisions of the enterprise leading to successful logical conclusions in terms of products/processes to be developed as per the objectives set in the beginning. This strategy is reflected in the form of a “Business Plan” of and enterprise which needs to be prepared and approved before starting the new business.
The Business Plan: It is a strategic summary of new venture. Its purposes are:
i) To ensure, by clear focus in strategy, that important points necessary to the success of any business venture have been considered.
ii) To persuade financial investors to invest in the new venture. A new venture business plan could include the following :
a) Current business status
· Business objectives
· Management and organization
b) Products or Services
· Product description
· Technological background
· Competition
Benefits to customers
· Market
· Marketing strategy
c) Capitalization
· Capital requirements
· Financial forecasts
· Benefits to investors
Technology and Competition:
If technology is to give a competitive edge, management must manage it as a part of the business system. Technological innovation can be integrated with production, marketing, finance and personnel into a balanced business system. Managing technology essentially involves four central concepts:
a) New Ventures
b) Innovation
c) Research
d) Research Infrastructure
New Ventures: Ideas central to new venture are concerned with entrepreneurial management, overall business plan, and the dynamics of organizational growth.
Innovation: Ideas central to innovation include concepts such as types of innovation, processes of innovation, the technology S-curve, technology life cycle, economic life cycles, sources of innovation, business opportunities in a technological system, marketing and new technology, corporate diversification through new venture, and technology in manufacturing strategies.
Research: Technological change is new knowledge about what things to produce and how to produce them; and in the corporation, new knowledge often comes from corporate research. Research management includes organization of research, project management, research personnel, and corporate research strategy.
Research Infrastructure : With the expansion and increase of intensity of international competition, the R&D infrastructure of a nation plays a critical role in economic competition.
Managing technology is taking risks in novel products and developing new markets. In the world of rapid technological progress and changing competitive environments and market needs, firms must pay increasing attention to developing new innovative products for domestic and world markets, and therefore an efficient technology management system is important.
Technology and management of technology are critical for an enterprise for its successful operation on long-term basis. There are three basic considerations for starting any new firm based on technological innovation.
a) The idea for a technological innovation:
b) A potential market:
c) Team work in both technological and business enterprise:
The idea of a technological innovation should be based with the potential market and technology team should closely interact with the rest of divisions of the enterprise leading to successful logical conclusions in terms of products/processes to be developed as per the objectives set in the beginning. This strategy is reflected in the form of a “Business Plan” of and enterprise which needs to be prepared and approved before starting the new business.
The Business Plan: It is a strategic summary of new venture. Its purposes are:
i) To ensure, by clear focus in strategy, that important points necessary to the success of any business venture have been considered.
ii) To persuade financial investors to invest in the new venture. A new venture business plan could include the following :
a) Current business status
· Business objectives
· Management and organization
b) Products or Services
· Product description
· Technological background
· Competition
Benefits to customers
· Market
· Marketing strategy
c) Capitalization
· Capital requirements
· Financial forecasts
· Benefits to investors
Technology and Competition:
If technology is to give a competitive edge, management must manage it as a part of the business system. Technological innovation can be integrated with production, marketing, finance and personnel into a balanced business system. Managing technology essentially involves four central concepts:
a) New Ventures
b) Innovation
c) Research
d) Research Infrastructure
New Ventures: Ideas central to new venture are concerned with entrepreneurial management, overall business plan, and the dynamics of organizational growth.
Innovation: Ideas central to innovation include concepts such as types of innovation, processes of innovation, the technology S-curve, technology life cycle, economic life cycles, sources of innovation, business opportunities in a technological system, marketing and new technology, corporate diversification through new venture, and technology in manufacturing strategies.
Research: Technological change is new knowledge about what things to produce and how to produce them; and in the corporation, new knowledge often comes from corporate research. Research management includes organization of research, project management, research personnel, and corporate research strategy.
Research Infrastructure : With the expansion and increase of intensity of international competition, the R&D infrastructure of a nation plays a critical role in economic competition.
Managing technology is taking risks in novel products and developing new markets. In the world of rapid technological progress and changing competitive environments and market needs, firms must pay increasing attention to developing new innovative products for domestic and world markets, and therefore an efficient technology management system is important.
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