TECHNOLOGY TRANSFER

PRESENTED BY: SATYA SNIGDHA DAS

SOURABHA RAY

WHAT IS TECHNOLOGY TRANSFER

• Basically in two ways technology can be acquired: Develop it or Purchase it.

• Simply saying the second way of acquiring new technology is commonly called as technology transfer.

• Transfer of technology is a process which is very essential for the wide application,utilisation and upgradation of technology which has been developed.

DEFINITION

• Technology transfer is a process that permits the flow of technology from a source to a receiver. The source is the owner or holder of knowledge while the recipient is the beneficiary of such knowledge.

• Technology transfer is a process by which science and technology are transferred from one individual or group to another that incorporates this new knowledge into its way of doing thgings.(BY :Jain and Triandis)

• It is the process of providing the technology developed from one organisation for other potentially useful purposes.(NASA)

CATEGORIES OF TECHNOLOGY TRANSFER

CATEGORY DESCRIPTION EXAMPLE

Horizontal technology transfer

Near maturity technology may shift between countries

Licensing

Vertical technology transfer From R & D organization to a firm

Nano technology

International technology transfer

Transfer across national boundaries

From industrialized countries to developing countries

Regional technology transfer From one to another region of the country

Andhra Pradesh to Punjab

Cross industry technology transfer

From one industrial sector to another

Space program to commercial application

Inter-firm technology transfer

From one firm to another Machine tool manufacturing firm to a producing furniture firm

Intra-firm technology transfer

Within a firm from one location to another

Mumbai factory to factory at chennai.

MODELS OF TECHNOLOGY TRANSFER• 1. Through bridging Agencies

BRIDGING AGENCIES

TECHNOLOGY SOURCES

TECHNOLOGY USERS

Bridging agencies : the govt. departments,financial institutions,industries,technology transfer agencies,consultants,venture capital companies,research companies,R&D organisations . etc

2.Research And Development Diffusion Model

DIFFUSION

RESEARCH DEVELOPMENT

ADOPTION

KEY ENTITIES

3.Problem Solver Model

NEED FELT

APPLICATION OF SOLUTION

ARTICULATED AS PROBLEM

SEARCH FOR SOLUTIONS

CHOICE OF SOLUTION

4.TECHNOLOGY TRANSFER SUMMARY MODEL

ADAPTION

COMMUNICATION UTILIZATIONDEVELOPMENT

MODES OF TECHNOLOGY TRANSFER

1.THE PASSIVE MODE

TECHNOLOGY BASE USERTECHNICAL INFORMATION

•Publications•Computerised Data Base•Personal Contacts

•Primary Innovator for Application of Technology

2.THE SEMIACTIVE MODE

• Publications• Computerized

data bases• Personal Contacts

• Secondary Innovator for application technology

TECHNOLOGY BASE USER

TECHNOLOGY TRANSFER

AGENT

TECHNICAL INFORMATION

•Primary Innovator for Application Technology

3.THE ACTIVE MODE

• Publications• Computerized

data bases• Personal Contacts

• Primary Innovator for application technology

TECHNOLOGY BASE USER

CHAMPION AND HIS

TEAM

TECHNICAL INFORMATION

•Secondary Innovator for Application Technology

ROUTES OF TECHNOLOGY TRANSFER

1. Suppliers of Material and Parts2. Equipment Supplier3. Licensing4. Franchise5. Joint Venture6. Turnkey Project7. Foreign Direct Investment(FDI)8. Technical Consortium and Joint R&D Project

CASE OF TECHNOLOGY TRANSFER IN CHINESE AUTOMOBILE INDUSTRY

• The Chinese automotive industry :fast growing production and potential market, which attracts a lot of foreign automakers to establish strategic alliance in China.

• The automotive industry of China has been rapidly growing since the year 2000 . The annual vehicle production output of China increased from 2 million vehicles in 2000 to over 18 million vehicles in 2011 .

• Despite the fast development of the Chinese automobile industry, the lack of advanced technologies and independent research and development innovation is a major challenge for Chinese automakers.

• Technology transfer is seen as a key factor to help the Chinese automotive industry to gain access into the global market

• The government has encouraged building joint venture Research and Development (R&D) centers in Beijing with advantageous tax policies in order to promote technology and knowledge transfer. In fact, large amount of global automakers have established joint ventures with local companies due to the requirement of current government policies.

• Despite the steady growth of R&D investment in China, the weak R&D capability still exists. Therefore, Chinese domestic automakers have started to buy foreign brands to acquire the advanced technology and access the world auto market

LEAD CHINESE AUTO COMPANIES AND THEIR JOINT VENTURES

Chinese Automakers Foreign Joint Ventures

BAIC (Beijing Auto) Beijing Benz, Beijing Hyundai

Brilliance Auto, Huachen Auto Group BMW Brilliance

Chang’an Auto (Chana Auto)

Chang’an-Ford, Chang’an-Mazda,Chang’an- Suzuki

Changhe Auto, Chang’an Changhe Suzuki

Dongfeng Motor

Dongfeng Nissan, ZhengZhou,Dongfeng Honda, Dongfeng YuedaKia

FAW (First Automobile Works)FAW Volkswagen, FAW Audi,FAW GM, FAW Mazada, FAW Toyota

GAC (Guangzhou Automobile group co.)GAC-Honda, GAC Toyota, GAC Flat,GAC Mitsubishi

Geely Auto Volvo Cars

SAIC (Shanghai Automotive Industry Co.) Shanghai GM, Shanghai Volkswagen

THE CASE

• Two case studies were chosen and analyzed, the first being the technology transfer between the Swedish firm – Volvo Cars and the Chinese firm – Geely and the second being the technology transfer between the German firm – Volkswagen and the Chinese firm –First Automobile work

The Case of Geely and Volvo Cars

• VOLVO’S PERSPECTIVE• Chinese automobile industry policy of making JVs with 50%

shares.• In order to stay competitive in Chinese market, Volvo Cars has to

produce cars in China.• Volvo’s decision of being going opposite way cause most of

Western companies keep their core technologies in headquarters.• Volvo want the way to transfer should be transfer to JV company

directly by being in very controlled in intellectual property (IP).

GEELY’S PERSPECTIVE

• To take the benefit of Volvo Car’s complete system such as advanced platform, well-managed organization structure and intelligent employees.

• the whole Volvo is a system and it can survive by itself. But Geely offers them a way to reduce more cost and produce efficiently

• Volvo cars only had tiny market share in the huge Chinese market. However, the sales of Volvo cars have increased in the post JV years.

Technological capability

• Volvo using local engineers to produce cars locally. In Volvo’s R&D center in Shanghai, the majority of the engineers are local Chinese engineers

• they have regular seminars as well as training program in both Geely and Volvo Cars, which can help their employees to acquire know-how skills and enhance the speed of technology transfer

• due to the Chinese automobile industry • are lack of maturity and are in the copy phase at the moment. It

is also a big challenge for Swedish leaders to train people and develop people.

• , the cultural differences are challenging to both Chinese and Swedish engineers.

Case of First Automotive Work and Volkswagen

• The FAW- Volkswagen Automobile was established in 1991, it is a joint venture passenger carmaker between FAW Group Corporation (share investments of 60%) and Volkswagen AG (share investments of 40%). FAW-Volkswagen adopts advanced technologies and equipment to manufacture some of the world’s most famous brands

• Automobile industry policy • There are three major motivations driving Chinese automakers to

start partnership with foreign automakers: 1. Gain profits; 2. Learn skills and transfer knowledge; 3. Enhance the capability of the whole industry

• It was realised that Chinese automotive industry can be better developed through technology transfer.

• It was a big challenge for China to produce their own cars in the 1980s due to the limited capability and high cost. Govt policy tried to change it.

• Technology transfer • For FAW-VW the technology of car manufacturing for example to

laser-welding technology has been transferred from foreign automakers.

• So Lack of diversified technology lead to technology transfer. • Generally, foreign experts of VW come to FAW-VW’s plants in

China to guide Chinese employees. Especially, every time they are going to invest in new products, their German partners will come to china company and work together

• Moreover, sending employees regularly abroad or to their partner’s company to learn skills, exchange knowledge and gain experience is also an efficient approach.

• When it comes to the technology transfer difficulties,the experience and expertise of western industry was not so easily compatible.

• Environmental and design- related technologies need to be transferred. Due to FAW aims to reach the environmental polices that are launched by the Chinese government and implement the requirements of ISO 9001.

• Additionally, product-related technologies such as software which is used to improve the production system, as well as the material and manufacturing.

THANK YOU