11.2. STAGES OF TECHNOLOGY TRANSFER

Transferring technology from an R&D lab to manufacturing, marketing, and the ultimate user is an important function. Different organizational elements can play useful roles in successfully reaching this goal. To see how different roles and functions can best be organized, it would help to examine the stages or steps of technology transfer.

Rogers (1983, 1995) suggests five main steps leading to the adoption of technology:

• Knowledge

• Persuasion

• Decision

• Implementation

• Confirmation

Knowledge occurs when a potential user learns about the new technology and gains some understanding of its capabilities and usefulness. At this stage the user wants to know what the innovation is, what its capabilities are, and how it works. Persuasion occurs when the user forms a favorable or an unfavorable attitude toward the innovation. Here the user is looking at comparative advantages and disadvantages of the innovation. Decision occurs when the user engages in activities that lead to adoption or rejection of the innovation. Implementation occurs when the user incorporates the innovation into the way of doing things. Confirmation occurs when the user seeks to confirm the implementation decision and continues to use the innovation. This step is not always well understood, which is why many innovations first implemented are later discontinued. Certain activities to reinforce user acceptance of the innovation need to continue after implementation.

Adoption of innovation involves considerable uncertainty and thus some risk since it is not always clear what benefits will follow. Operational problems can often occur during the implementation stage, thus increasing costs and reducing benefits. Some of this uncertainty can be reduced by demonstration projects and by implementing the innovation on a partial basis. Organizations that do not reward prudent risk-taking are less likely to adopt innovations.

Adoption of innovation typically follows a bell curve, or an S-curve if considered cumulatively. Rogers (1983, p. 247) describes five categories of adopters. In general, early adopters are prudent risk-takers, are better informed and educated, and act as opinion leaders for the organization. The role of early adopters is to decrease the uncertainty about an innovation by adopting it and by adjusting it to fit the organization's needs. Early adopters then communicate this information to other potential users within the organization and to peers outside the organization. The late majority and laggards adopt innovation last.

Successful adoption normally requires resources (people, funds, and time), some training in using the innovation, and, at times, some changes in the way organizations operate. This involves commitment to and acceptance of the innovation at both the individual and organizational levels. Organizational structure and its routine functioning provide stability and continuity to an organization. The adoption of innovation may seem to threaten this stability and continuity, and thus it is understandable that there often is some resistance to innovation.

Some innovations may require manufacturing before they can be utilized by the ultimate user. For example, if the innovation involves a longer-lasting lightbulb or a complex instrument to monitor toxic wastes, the device must first be manufactured. Some innovations, such as computer systems, improved analysis procedures, or improved design criteria, can be transferred to the user without major intermediate steps. In both cases, before the innovation is implemented, the manufacturing department or the user has to become aware of the innovation and be persuaded to go on to the next steps: decision and implementation.

During the early steps—knowledge and presentation—marketing people can play an important role. Marketing people may, for example, develop information brochures or demonstrations that capture the imagination of the users, motivating them to seek further information. As users move to the decision stage and beyond, the R&D group and other individuals intimately familiar with the innovation need to play the pivotal role.