Technology Transfer

1. Technology Transfer Technology Diffusion and Commercialization

2. Technology transfer • A technology developed by an organization for a particular purpose was further given to other entities in order to exploit its potential in some areas. • A transfer/transformation/transition process between the technology originator/possessor and the receiver

3. The economic view of technology transfer • Information is the intrinsic core • Technology is the exterior expression • Practice Research Approach • Information economics, • Transaction cost Economics, • Institutional Economics

4. The transferring level • International—from the DCs to NICs or LDCs • Regional—indigenous vs. foreign • Industrial—the threat of outsiders • Corporation—licensing program • Internal—the issue of transferring price

5. Channels of technology flow • Public dissemination • Reverse engineering • Purposeful acquisition • Licensing • Franchise • Joint venture • Turkey project • Foreign direct investment • Technological consortium & joint R&D

6. Technology consortia • Some European technological development consortia coordinated by EC/EU • Race (Research in Advanced Communication in Europe) • ESPRIT (European Specific Programs of Information Technology) • JESSI (Joint European Submicron Silicon program) • EUREKA (European Research Coordination Agency) • Airbus (Mercedes-Benz & British Aerospace, etc) • ITC consortia for developing and marketing of IT & communication technologies • The term of fair and non-discrimination licensing for necessary patents

7. Technology transfer crossing industries • U.S. Department of defense • 1980 Stevenson-Wydler technology innovation act • 1986 technology transfer act • 1989 national competitiveness & technology transfer act • E.g., the 2G CDMA mobile technology

8. International technology transfer • The goose-fleet pattern—the international technology transfer from U.S. to Japan, and then retransfer to four Asia Tigers, and Thailand, Indonesia, Malaysia, China, Vietanam, etc. (the TLC model for international technology transfer according to the cost of factors)

9. Singaporean lessons • Government championship • Efficient public order and stable political regime • Advanced infrastructure • Facilitate the establishment of Asian operation center for global corporations

10. Taiwanese lessons • National industrial championship • The high flexibility of medium- and small-sized corporations • National technological research & incubation center for facilitating technology diffusion— evaluation and imitation of technology • Focus on the manufacturing capability • Science & technology park for fostering the industry cluster • Transplanting the deeply absorptive capacity—overseas education, training and homing returns

11. The action-and-reaction between transferor and transferee • Information asymmetries • The territory exclusion term • The obligation of technology feedback—the claim of cross licensing • The syndrome of not-invent-here • The incentive of invention around

12. The macro view of international technology transfer • Counterparts • the private enterprises of developed countries, LDs (transferor), vs. the governments of less developed countries, LDCs (transferee) • The transferor • economic gains of technology by strategically taking the advantage of LDCs (transferees) • The transferee • the governmental interventions for GDP growth contributed from the expected technology externalities of transfer • prevent the indigenous resources and employment from being exploited • The processes of technology transfer are more political than economic negotiation

13. Analysis framework of international transfer of technology supply side DCs transaction mechanism: governance structure designing perceived transaction cost micro hierarchy .the nature of technology .wholly owned or majority-owned subsidiary .selection, negotiation, drafting, (direct foreign investment package) bonding cost of contracts .equity joint venture .legal system for IPR .the contractual joint venture .political stability .partnership or strategic alliance .social context and cultural congruence .pure contract (licensing, technical assistance) .financial and taxation policy market .localized, customized, decentralized .the education level and absorptive ability vs. globalized, standardized, centralized macro .market potential & economics of scale demand side LDCs

14. Rogers’ diffusion focus Robinson's transfer focus Maturity Relative advantage Dynamism status of art of tech Compatibility Availability Complexity Complexity Triability functional Imitability Observability degree of tech Relative Importance Environment specificity Scale specificity specificity Firm specificity of technology Factor specificity Product/process types of technology Core/peripheral Production continuity Comparison with technology diffusion and transfer

15. Transfer concerning focus • Technology transaction mode • The nature of technology: general/specific, tacit/explicit, tangible/intangible, mature/emerging, standardized/integrated, product design/process integration • The phase of transfer :development/production/marketing • Accompanying mechanism • payments of transfer: time base or performance criteria—installation/operation/profitability • measurement of transfer: metering scale and information monitoring • Circumstance & context • Home country: the policy of leakage/security • Host country: the policy of spillover/employment • Evolutionary process

16. Technology absorptive capacity • Resource endowment, people talent, education system, path dependence, infrastructure/property law/business managerial practice/social norm • Appropriate technology—criteria defined by political, social, and economic development and progress • Availability of complements: the trade-off between the broadly low-end and the scarce high-end cluster

17. Extended readings • Robinson, Richard (1988), The International Transfer of Technology: Theory, Issues, and Practice, Ballinger Pub Co. • Johnson, Chalmers A. (1983), MITI and the Japanese Miracle: The Growth of Industrial Policy, 1925-1975, Stanford University Press.