Chapter 11. TECHNOLOGY TRANSFER

This chapter focuses on technology transfer for a mission-oriented research organization. A mission-oriented research organization has its objectives defined in specific organizational goals rather than in technical terms and is vertically integrated. In other words, these organizations span activities covering basic research, applied research, development, and even technical support for operational activities. Non-mission-oriented research organizations have their objectives defined primarily in scientific terms—for example, the study of high-energy physics, nuclear energy, toxic substances, atmospheric physics, and bioacoustics. Academic research is generally non-mission-oriented and is usually small-scale research carried out in academic departments of universities. Much of the technology transfer from non-mission-oriented research organizations to application in real-life situations is likely to occur via a buffer organization similar to a mission-oriented R&D organization, and hence the focus on such organizations.

For R&D organizations, technology transfer, or tech transfer, may be defined as the 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.

A new technology has to have considerable relative advantage and has to provide significant value to the customer before it is embraced by the wider user community. The new technology can be more expensive than the older technology, but the value in terms of quality, flexibility, and responsiveness it provides motivates the user to take the necessary steps in adopting this technology.

In utilizing new technology, there are numerous management challenges. Continuous improvement is the basis of future competitive advantage for a firm. Howard and Guile (1992) suggest some general rules for a manager responsible for adopting new technology:

• Do not accept performance as it is and focus on continual improvement.

• Do not just do the same thing a bit faster (or cheaper, or automatically). Careful reexamination of product and process designs is essential to make significant improvements.

• Recognize and learn to deal with people's natural reluctance to accept change that is necessary to incorporate innovation in the firm. Some examples given are:

  • "There is nothing wrong with our manufacturing processes; the problem is the product designers."

  • "We can't afford to spend time and money on incorporating changes and this will only slow us down."

  • "We simply need to get labor rates down."

  • "If only our foreign competitors were not allowed to dump their lower-quality products in our market, then there is nothing we could not handle internally."

  • "In the U.S. we have too many regulations that affect productivity and technology implementation".

This chapter covers items from technology transfer hypotheses and stages of technology transfer to developing a technology transfer strategy.