OPEN INNOVATION AND
TECHNOLOGY TRANSFER
INTRODUCTION TO TECHNOLOGY TRANSFER
Technology Transfer is the application of technology to a new use or user.
It is the process by which technology developed for one purpose is employed either
in a different application or by a new user. The activity principally involves the
increased utilisation of the existing science/technology base in new areas of
application as opposed to its expansion by means of further research and
development.
(Langrish et al., 1982).
Technology transfer is intentional, goal-oriented interaction between two or more
social entities, during which the pool of technological knowledge remains stable or
increases through the transfer of one or more components of technology (Autio &
Laamanen, 1995).
INTRODUCTION TO TECHNOLOGY TRANSFER
Baranson (1970) defines technology transfer as transmission of know-how (knowledge)
which enable the recipient enterprise to manufacture a particular product or provide a
specific service.
The transfer of technology requires a sustained relationship between two enterprises
over a period of time to enable the receiving enterprise to produce the product with the
desired level of quality standards and cost efficiency.
Technology transfer does not only transfer the technical know-how (knowledge)
required to produce the product to the recipient but also the capacity to master, develop
and later produce autonomously the technology underlying the products.
INTRODUCTION TO TECHNOLOGY TRANSFER
Technology transfer needs to be perceived in terms of achieving three core objectives:
• the introduction of new techniques by means of investment of new plants
E.g. A large automotive company in a developing economy wants to produce electric vehicle (EV)
batteries, a technology it currently does not possess. The company forms a joint venture with an
established global battery manufacturer (e.g., a partnership between a local manufacturer and a major
Asian battery producer).
• the improvement of existing techniques
E.g. An older oil refinery uses a standard catalytic cracking process but faces increasing energy costs and
emissions regulations. The refinery contracts a specialized engineering firm that developed a new,
patented catalyst composition and a sophisticated digital twin control system to manage reaction
kinetics.
• the generation of new knowledge
E.g. Partnerships between universities (knowledge generators) and companies (knowledge users) lead
to new discoveries, patents, and products.
The Economic Perspective of Technology Transfer
TECHNOLOGY TRANSFER AND KNOWLEDGE TRANSFER
Technology transfer is closely associated with the transfer of information, know-how,
technical knowledge which is embodied in the products, processes and managements.
Both technology and knowledge transfer are inseparable because when a technological
product is transferred or diffused the knowledge upon which its composition is based is also
transferred.
The technology will not occur without knowledge transfer as knowledge is the key to control
technology.
The Tangibility of Knowledge
Acquisition of external technology/knowledge matrix
Acquisition of external technology/knowledge matrix
It is not normally used to describe, say, the purchase of new computer software.
Technology transfer is defined as:
«The process of promoting technical innovation through the transfer of ideas,
knowledge, devices and artefacts from leading edge companies, R&D organizations and
academic research to more general and effective application in industry and
commerce.»
(Seaton and Cordey-Hayes, 1993: 46)
Source: Simms & Frishammar, 2024).
Technology acquisition: how much control of the
technology is required?
MODELS OF TECHNOLOGY TRANSFER
• Licensing
• Science park model
• Intermediary agency model
• Directory model
• Knowledge Transfer Partnership model
• Ferret model
• Hiring skilled employees
• Technology transfer units
• Research clubs
• European Space Agency (ESA)
• Consultancy
LICENSING
• Essentially, licensing involves the technology owner receiving a license fee in return for
access to the technology. Very often, the technology in question will be protected by
patents. The details of each licensing agreement will vary considerably.
• Mutual self-interest is the common dominator behind most licensing contracts, as it is in
other business contracts. Licensing is the act of granting another business permission to
use your intellectual property.
LICENSING
Other reasons for licensing are to:
• avoid or settle patent infringement issues;
• diversify and grow through the addition of new products;
• improve the design and quality of existing products;
• obtain improved production or processing technology;
• ensure freedom of action in the company’s own R&D programme (patents held by other
companies may inhibit R&D activities);
• save R&D expense and delay;
• eliminate the uncertainty and risk involved in developing alternative processes and
technology;
• accommodate customer needs or wishes; and
• qualify for government and other desirable contracts.
SCIENCE PARK MODEL
The idea is to develop an industrial area or district close to an established centre of
excellence,
often a university. The underlying rationale is that academic scientists will have the
opportunity to take laboratory ideas and develop them into real products. In addition,
technology- or science-based companies can set up close to the university so
that they can utilize its knowledge base.
HIRING SKILLED EMPLOYEES
One of the oldest methods of technology transfer, and one of the most effective
according to many research managers, is hiring people with the necessary skills and
knowledge. For R&D managers who wish to establish a range of research projects in
an area of technology where the company has limited knowledge or experience, this
is one of the fastest methods of gaining the necessary technology.
TECHNOLOGY TRANSFER UNITS
These units or offices are formal offices or departments (often within universities, public
research institutes, or corporations) that manage the transfer of research results, inventions,
and intellectual property to external partners such as companies or entrepreneurs.
CONSULTANCY
Individual researchers or research institutions provide expert advice, problem-solving, or
technical services directly to firms or government bodies.
R&D research groups within large organizations often will contact several consultants prior
to establishing a research project in a particular field related to the consultant’s area of
expertise. Consultants are able to offer help, advice and useful contacts to get the research
project off to a flying start.
LIMITATIONS OF MODELS
• They fail to understand the recipient organization's needs.
• Technology viewed in terms of technical attributes.
• Underestimate the extent of interaction required.
• Assume an ability on the part of organizations to communicate their problem in the form
of a technical requirement.
ABSORPTIVE CAPACITY
• The ability to evaluate and utilize outside knowledge is largely a function of the level of
prior-related knowledge.
• Prior knowledge includes basic skills, shared language, knowledge of recent scientific or
technological developments in the field.
• Prior-related knowledge confers the ability to recognize the value of new information,
assimilate it and apply it to commercial ends.
• These abilities collectively constitute ‘absorptive capacity’.
A Conceptual Framework For the Development of
Business Opportunities
Interlinking systems of knowledge-transfer relationships
PATENT HIGHLIGHTS
• In 2024, innovators from around the world submitted a record breaking 3.7 million patent
applications, up 4.9% on 2023.
PATENT HIGHLIGHTS
• China’s IP office received 1.8
million patent applications in
2024, more than three times
the number submitted to the
US Patent and Trademark
Office.
• The US Patent and Trademark
Office received around
333,000 non-resident
applications – more than twice
the number received by China.
PATENT HIGHLIGHTS
• In 2024, Asia further
consolidated its position as the
hub of global innovation, with
that region’s IP offices
receiving seven out of every 10
patent applications filed
worldwide.
• Offices located in Asia received
70% of patent applications
filed worldwide in 2024.
PATENT HIGHLIGHTS
• Among the top 20 origins, applicants residing in Finland (+15.4%), India (+19.1%) and Türkiye
(+14.6%) recorded double-digit filings growth in 2024.
• Patent filings for unique inventions more than doubled, increasing from 0.95 million in 2008 to
2.17 million in 2022.
• Patent filings in computer technology have grown by 10.3% over the past decade and now
represent 13.2% of global filings.
• It was followed by electrical machinery (7.2%), measurement (6.2%), digital communication
(5.8%) and medical technology (4.9%).
• Energy-related patent applications rose by 3.2% in 2023, reaching 47,200 published applications.