Technology Transfer Essay

Technology Transfer

In order to sustain the business in the competitive market in the technological industry, successful innovation with effective technology transfer is the critical factor (Siegel et al., 2003)

Successful innovation depends on the development and integration of new knowledge in the innovation process (Cassiman and Veugelers, 2002). Both research & development and technology transfer are relating to organization’s knowledge base and productivity, while research & development involves not only innovation but also learning (Hu et al., 2005). Besides doing own research and development, firms should be able to combine different innovation activities and acquiring technological knowledge from other organizations through technology

Bozeman (2000) suggests that in the technology transfer point of view, technology as an entity which must rely on a subjectively determined but specifiable set of processes and products. For example, when a technological product is transferred, the knowledge upon which its composition is based is also diffused. Technology transfer is not only the product that is transferred but also knowledge of its use and application (Sahal, 1981). Without the knowledge base, the physical entity cannot be put to use.

Technology transfer is defined in many different ways, according to the discipline of the research and the purpose of the research. In general, Roessner (2000) defines technology transfer as the formal and informal movement of know-how, technical knowledge, or technology from one organizational setting to another. The term has been used to describe and analyze a wide range of organizational and institutional interactions involving some forms of technology-related exchange in private firms, government laboratories, universities, and nonprofit research organizations (Roessner, 2000).

Determinants of Technology Transfer

To assess the impact and effectiveness of technology transfer and acquisition, Siegel et al. (2003) suggested 3 determinants of technology transfer, which are:

i. Internal Inputs 
 ii. Environmental/Institutional

Based on previous researches, Bozeman and Coker suggested two principal models for evaluating the effectiveness of technology transfer, which are ‘Out-the-door’ model and ‘Market Impact’ model.

The Out-the-door model assumes that transfer itself equates with success (Bozeman and Coker, 1992). Once the technical good has been adopted by another organization, then an instance of successful technology transfer has been accomplished. The model simply involves a transfer agent who develops a technology and transfer the technology to recipient through some intellectual property mechanism such as patent and license (as shown in Figure 5.1). Based on Out-the-door model, technology transfer is conceived as a probability distribution with success ‘parameters’, then increasing the instance of transfer increases the likelihood of