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
Wednesday, January 23, 2008
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
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