MANAGEMENT
of
TECHNOLOGY
The Key to Competitiveness and Wealth
Creation
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Tarek Khalil | Ravi Shankar
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Technology
Transfer
RANBAXY ENTERS INTO ANTIHIV DRUGS MARKET
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Ranbaxy Laboratories Limited (Ranbaxy) is the largest
pharmaceutical company of India, which is now owned by the
Daiichi Sankyo Group of Japan
Despite an entry in pharmaceutical area in 1970s, only by late 1980s
that Ranbaxy showed the fruits of its R&D efforts by developing of a
novel process for Cefaclor, which was the best selling antibiotic drug
in 1980s
Ranbaxy had another excellent experience in development of a new
process in drug discovery system
The NDDS of Ranbaxy was able to produce a one-dose-a-day
formulation in place of multiple-dose-a-day therapy formulation of
Bayer
Bayer did not waste much time and entered into a licensing
agreement with Ranbaxy
RANBAXY ENTERS INTO ANTI-HIV
DRUGS MARKET (Contd.)
Third example of a similar type is technology transfer related arrangement
with Gilead Sciences, Inc., which was founded in 1987 in California
Gilead retained the rights to manufacture and market generic equivalents of
(i) Elvitegravir, an investigational integrase inhibitor, (ii) Cobicistat, an
investigational anti-retroviral boosting agent, and (iii) Quad, which combines
four Gilead HIV medicines in a once-daily, single-tablet regimen
Under the agreement Ranbaxy, which is one of the four licensees will also
receive a complete technology transfer of Gilead manufacturing process to
support their efforts to obtain local regulatory approvals and scale up
production
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Through a technology transfer arrangement in 2006, Ranbaxy got the
marketing right in India and many other developing nations for two drugs,
Tenofovir and Emtricitabine, developed by Gilead that were very popular in
HIV therapy
INTRODUCTION
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
A user of a technology does not have to be its
creator or inventor
Transfer of technology is a process essential for
the wide application and utilization of
technology by one or more users
We discuss here some cases of international
technology transfer, present examples of
successful national programmes of technology
transfer, and examine a model of intra-firm
technology transfer
DEFINITIONS AND
CLASSIFICATIONS
Technology transfer is a process that permits the flow of technology
from a source to a receiver
Technology transfer can be divided into the following categories:
International technology transfer
Regional technology transfer
Cross-industry or cross-sector technology transfer
Inter-firm technology transfer
Intra-firm technology transfer
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Jain and Triandis (1990) define technology transfer as 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 things
CHANNELS OF TECHNOLOGY
FLOW
General channels
Reverse-engineering channels
Licensing
Franchise
Joint venture
Turnkey project
Foreign Direct Investment (FDI)
Technical consortium and joint R&D project
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Planned channels
INTERNATIONAL TECHNOLOGY
TRANSFER
The technological production base previously confined to the
industrialized nations of the West and the North has recently spread
to a large number of other countries
international technology transfer, through mutual cooperation
agreements, or through direct purchases from the United States,
Germany, Japan, and other industrialised countries
The migration of technology and production facilities from the
United States to Japan and other Asian countries in the 1970s and
1980s occurred because of a lack of competitiveness in U.S.
manufacturing
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
In a majority of cases, the migration of technology occurred through
INTERNATIONAL TECHNOLOGY
TRANSFER (Contd.)
Avoiding headto-head
contests for
supremacy, the
target niches
where they can
quickly turn
technologies
into world-class
products
Technology Specialisation Among the Tigers
Source: Business Week, Dec. 7, 1992
Tigers prefer to
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
technology
INTERNATIONAL TECHNOLOGY
TRANSFER (Contd.)
The Singapore Model
Establish/maintain a clean, effective government that is well respected by the
people
Build on areas of strength
Encourage savings to increase investment while avoiding external debt
Encourage family projects and local industry to create economic
opportunities, and keep people from emigrating to large cities
Do not waste funds on huge projects
Encourage investment by both small investors and multinationals
Promote education
Develop effective strategies for technology transfer
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Avoid internal squabbles for national unity
TECHNOLOGY TRANSFER IN
TAIWAN
In Taiwan, industrial technology R&D is enhanced by a nonprofit
corporation known as the Industrial Technology Research Institute
(ITRI)
technology: the National Tsinghua University and the National ChiaoTung University
To facilitate the transfer further, an industrial park is located in close
proximity to permit a project incubated in ITRI to be spun off to a
privately owned facility in the industrial park
Technology transfer through people is a very effective transfer
mechanism
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Taiwan has located ITRI next to two of its top universities in science and
U.S. NATIONAL TECHNOLOGY
TRANSFER
The United States is by far the most intensive technology-producing country in the world
How is it, then, that U.S. competitiveness declined in the 1970s and 1980s and that the nation
has a huge deficit in its balance of trade?
The National Aeronautics and Space Administration (NASA) has been very active in promoting
Perrin (1990) described a proactive approach to the transfer of Department of Defense (DOD)
technologies to solve civil problems
Perrin enumerated the advantages of the active transfer process as follows:
Conveys timely information on current and planned developer and user programmes
Provides real-time feedback and criticism on specific technology or problem items
Allows the transmittal of ancillary information and know-how that is not available in formal literature or
reports
Permits the transfer agents to manage and control in a user-need or applied direction
Requires a relatively small expenditure of effort and time relative to the results obtained
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technology transfer and has created a national network of Technology Transfer Centres
U.S. NATIONAL TECHNOLOGY
TRANSFER (Contd.)
The national network of Technology Transfer Centres and offices sponsored by NASA is dedicated to the timely
transfer of scientific advances and technologies resulting from NASAs aeronautics and space programmes and
other federal R&D to practical applications throughout the U.S. economy.
NASA field centres: Each of NASAs field centres has a Technology Transfer Office to coordinate and manage a full
range of technology transfer activities, including new technology reporting, technical assistance, cooperative
projects, and industry outreach.
Regional Technology Transfer Centres: The NASA Regional Technology Transfer Centres (RTTCs) are staffed by
technology transfer experts offering technical consultation services and linkage to other experts in the field. The
RTTCs provide services to industry within their designated regions and assist industry clients to locate, assess, and
commercialize technologies from NASA and the federal R&D base.
National Technology Transfer Centre: The National Technology Transfer Centre (NTTC) serves as a national
clearinghouse/gateway for federal technology transfer and provides services and assistance in training, planning,
and outreach.
Earth Data Analysis Centre: The Earth Data Analysis Centre (EDAC) provides technology transfer services in
support of the distribution and transfer of remote sensing/geographic information systems data and technology.
Technology Application Team: The Technology Application Team (TAT) works with industry to identify and solve
critical problems with existing NASA technology and to develop cooperative projects and relationships that
address technological needs of national or industry-wide significance.
Computer Software Management and Information Centre: The Computer Software Management and Information
Centre (COSMIC), operated by the University of Georgia, is NASAs technology transfer programme for collecting
and documenting computer software technology produced by NASA and distributing it to U.S. private,
government, and academic organizations.
Centre for AeroSpace Information: The Centre for AeroSpace Information (CASI) maintains mailing lists and
distributes NASA technology transfer publications, including the annual Spinoff report. CASI provides responses
and referrals to inquiries about technology transfer. CASI also provides centralised technology transfer
documentation support for all NASA centres.
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Source: National Aeronautics and Space Administration, 1995.
NASA National Network
U.S. NATIONAL TECHNOLOGY
TRANSFER (Contd.)
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
U.S. NATIONAL TECHNOLOGY
TRANSFER (Contd.)
Wood and EarNisse (1992) mentioned the following factors as
contributing to the successful technology transfer project from
Sandia to Quartex:
Sufficient proprietary rights from Sandia to Quartex to justify the
risk of investment
Potential for additional proprietary coverage for the technology
through improvement patents and new technology
A landmark invention
Diverse market applications for the technology
Incentives for sustained technology transfer and support by a
product champion
Required resources within Quartex for product commercialization
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Technology transfer fit for Quartexs strategic planning.
U.S. NATIONAL TECHNOLOGY
TRANSFER (Contd.)
Wood and EarNisse (1992) mentioned the following factors as
contributing to the successful technology transfer project from
Sandia to Quartex:
Sufficient proprietary rights from Sandia to Quartex to justify the
risk of investment
Potential for additional proprietary coverage for the technology
through improvement patents and new technology
A landmark invention
Diverse market applications for the technology
Incentives for sustained technology transfer and support by a
product champion
Required resources within Quartex for product commercialization
Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Technology transfer fit for Quartexs strategic planning.
INTRAFIRM TECHNOLOGY
TRANSFER
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A firm attempting to transfer technology from one site to
another or from one division to another must approach the
transfer process in a systematic and deliberate manner
In fact, complicated transfer projects may require two
teams, one at the source and one at the receiving end of the
technology
In this model, the project starts when a company decides to
acquire new technology through the purchase of a smaller
entrepreneurial company located thousands of miles away
In this particular case, the team comprises two separate
groups: one at the headquarters and one at the acquiredcompany location
Intrafirm
Technology
Transfer Model
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Source: Beruvides and Khalil, 1990; 1990 Institute of Industrial
Engineers
INTRAFIRM TECHNOLOGY TRANSFER
(Contd.)
INTRAFIRM TECHNOLOGY TRANSFER
(Contd.)
Several useful guidelines for setting up a
transfer team are recommended by Beruvides
and Khalil (1990):
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The smaller the team, the better.
People work best in an atmosphere of trust and
healthy competition.
Building teamwork and motivating the team
members are critical.
The chain of command and communication
channels should be well understood by all.
Success is largely dependent on the quality of the
people selected to perform the tasks
WEBLINKS
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