technology transfer between europe and india
TRANSCRIPT
Factors influencing technology transfer strategies between Europe and India
AMJAD SHAIKH
TECHNOLOGY TRANSFER CONSULTANT
FRANCE
© Amjad Shaikh, 2014.
Presented at Euro India Technology Sourcing EITS 2014, Metz, France
Content:
• Definitions
• Modes and Transaction
• TT Drivers and Factors
• Industrial Examples
• Technology Recipient
• Implementation
© Amjad Shaikh, 2014.
The Technology Transfer: Definition
The UNCTAD
Definition
Technology: “Systematic knowledge for the manufacture of a product, for the application of a process or for the rendering of a service (UNCTAD, 1985, chapter 1, para.1.2.).
Technology transfer: “Technology transfer” is the process by which commercial technology is disseminated. This takes the form of a technology transfer transaction, which may or may not be covered by a legally binding contract (Blakeney, 1989, p. 136), but which involves the communication, by the transferor, of the relevant knowledge to the recipient.
© Amjad Shaikh, 2014.
o The assignment, sale and licensing of all forms of industrial property
o The provision of know-how and technical expertise in the form offeasibility studies, plans, diagrams, models, instructions, guides,formulae, basic or detailed engineering designs, specifications andequipment for training, services. involving technical advisory andmanagerial personnel, and personnel training;
Direct
investment
o The provision of technological knowledge necessary to acquire, installand use machinery, equipment, intermediate goods and/or rawmaterials which have been acquired by purchase, lease or othermeans;
o The provision of technological contents of industrial and technical co-operation arrangements” (UNCTAD, 1996a, vol. I, p. 183).3
o The provision of technological knowledge necessary for theinstallation, operation and functioning of plant and equipment, andturnkey projects;
Licensing
Joint
Venture
Modes and Transaction
© Amjad Shaikh, 2014.
The TT: Drivers and factors
Global Trade Policies – e.g. TRIPS agreement
Identification of partners – capability, trust, cross cultural issues
Funding availability
O&M – Spares, After sales service, development of local supply chains
Demonstration of projects – stakeholder participation
Local adaptation of technology
National Government Policies – IPR, Foreign exchangeThe
Tra
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The complexity of product and production technique to be transferred
Transfer environment in donor and recipient countries
Absorptive capabilities of the recipient firm
Transfer capability and profit maximizing strategy
KEY DRIVERS OF TRANSFER
Product
Environment
Recipient
Donor
International Transfer: Transfer across national boundaries,as distinct from enterprise-to- enterprise transfer withinnational boundaries, is perceived and valued differently bytransmitters of technology because of differences in legalsystems, conflict of political interests, and the addeduncertainties of changes in exchange rates
© Amjad Shaikh, 2014.
Technology Transfer to India
Practical Challenges
and Opportunities
Finding a suitable partner Finding demonstration possibilities (e.g. technology center,
public demo sides,…) To protect Product in the Indian Market (IPR issues) Local component Developing a Business case – understanding prices , needs and
markets
By the year 2020, Productivity in India will have a sustained overall growth of8% and per Capita GDP will double. Indians will buy 5 times more carsOver 100 million Indians will enter work force App 150 million Indians willmove to urban areas There will an annual growth of 66% two wheelers,30% in commercial vehicles, 285% in air traffic to half a million passengers,24% in mobile subscribers with 5 million subscribers to speak a fewexamples. New high speed network of trains with ~25,000 Km of track.Indian Investment in machines - currently $5 billion andIncreasing by $10 billion, in next 5 years.
© Amjad Shaikh, 2014.
INDIA OPPORTUNITIES
Practical Examples
Company A:
Swedish company has provided innovative solution within online detection of microorganisms .
Management Issues Technical Issues
1. Establishing a pilot project together with the partner and the end user having commercial activities in focus
Software development, remote access through cloud configuration
2. Site surveys - Gathering background information of the site
Prepare to adapt to new environment minimizing the cultural difference
3. Education of the product and hygienic aspects Technical feasibility – gaps in claim/actual result
3. Is it user friendly? will the villagers of India be able to use it?
What is the life cycle for the device?
© Amjad Shaikh, 2014.
Practical Examples
Company B:
A German company seeking to enter into Indian Market for its process distillation technology through developing local supply chain.
Management Issues Technical Issues
1. Identifying suitable partner and suppliers Software development, remote access through cloud configuration
2. Site surveys - Gathering background information of the site
Raw material availability
3. Training of suppliers on international codes, standards.
Technical feasibility – gaps in claim/actual result
© Amjad Shaikh, 2014.
Practical Examples
Company C:
A French company develop partnership in India for motor manufacturing.
Management Issues Technical Issues
1. Challenges in focusing on sourcing partner Supplier for precision components not available
2. Intellectual property issue in sharing know how
Prepare to adapt to new environment minimizing the cultural difference
3. Education of the product aspects Technical feasibility
© Amjad Shaikh, 2014.
Key Points for Technology Recipient
Technology adoption: Lack of information and assessment tools has resulted in poorselection of technology.
Technology adaptation: Adapt the imported technology to your needs to avoid negativeeffects on employment, cultural patterns and habits, and effects leading to increasingdependence on imported raw materials and spare parts.
Intellectual property: The related IPR challenges are to identify the IPR elements in thetechnology, to understand the IPR options related to technology transfer and formulateappropriate terms.
Technology up gradation: Technology recipient should look into the aspects related to futuretechnological up-gradations, when signing technology transfer agreements.
Skilling of manpower: - Appropriate clear provision for training of technical people of theindustries from technology suppliers to handle and maintain the technology transferred.
Sourcing of components and sub-assemblies: Develop own technological capability toabsorb and adapt the imported technology rather than to look for short-term solutions.
© Amjad Shaikh, 2014.
Implementation
Description
(N-1)
Requirements
Verification
Viability
TT (N)
YES
YES
YES
YES
NO
NO
NO
NO
Our stage–gate process assist in deliveringsuccessful tech transfer projects by: Identifying the technology needed and making a
business case to obtain corporate approvalSearching for possible technology sources and
assessing offersNegotiating with short-listed suppliers and finalizing
the dealPreparing a TT implementation plan Implementing and assimilatingAssessing the impact of the TT project
The “Generic Technology Transfer Assessment Steps”
© Amjad Shaikh, 2014.
Thank You
Technology Transfer Consulting
Rumilly
France
Contact: [email protected]
0033(0)695703517
© Amjad Shaikh, 2014.