Methods of External Technology Transfer-6

Today we continue our discussion on external methods of technology transfer. A trade secret is any commercial formula, device, pattern, process, or information that affords an enterprise an advantage over others who do not know it. The information is not generally known and has value. Trade secrets must be maintained by avoiding public disclosure. 

In contrast, know-how is a broader term that describes factual knowledge not usually amenable to a precise description. Know-how is usually accumulated knowledge as result of trial and error. Know-how typically gives an enterprise the ability to produce something that could not be produced as accurately or successfully without it. Know-how may include trade secrets and cannot be protected or licensed unless it is first recorded in a tangible medium. 

Unlike patents, in the U S State, rather than federal, laws protect trade secrets. These laws allow the trade secret owner to prosecute someone for unauthorized use, observation, or lack of adequate security measures, the information moves into the public domain and loses protection under trade secret law. Trade secrets are effective to protect product innovations that incorporate various technological barriers to analysis, and process innovations that can be hidden from exposure.

Methods of External Technology Transfer-4

A trade secret is any commercial formula, device, pattern, process, or information that affords an enterprise an advantage over others who do not know it. The information is not generally known and has value. Trade secrets must be maintained by avoiding public disclosure.

 

In contrast, know-how is a broader term that describes factual knowledge not usually amenable to a precise description. Know-how is usually accumulated knowledge as result of trial and error. Know-how typically gives an enterprise the ability to produce something that could not be produced as accurately or successfully without it. Know-how may include trade secrets and cannot be protected or licensed unless it is first recorded in a tangible medium. Technology know-how is very important part of business for online business. For example blinds companies who manufacture roller shades and woven wood shades and sell it online, for them technological know how very important part of their external transfer is.

Unlike patents, in the US State, rather than federal, laws protect trade secrets. These laws allow the trade secret owner to prosecute someone for unauthorized use, observation, or lack of adequate security measures, the information moves into the public domain and lose protection under trade secret law. Trade secrets are effective to protect product innovations that incorporate various technological barriers to analysis, and process innovations that can be hidden from exposure.

Methods of External Technology Transfer-4

A patent does not give the inventor the right to practice his or her invention, only the right to exclude others from doing so. The inventor is given exclusive use of the invention and the right to assign that use. However, a grant of a patent has been found not to be useful for excluding imitators and/or capturing royalty income in most industries.

A grant of a patent is often likely to offer little benefit to its holder. Patents gives the patentee the right to exclude others from its use, but does not give the patentee the right to use the patent if such use infringes on patents of others. The United States patent system places the burden on the patentee to detect any infringers to sue for redress. A patent covers a particular means of achieving a given end, but not the end itself, even if the end and, perhaps the market it identifies, are novel. 

Trade Secrets and Know-how 

Trade Secrets and Know-how are others forms of intellectual property which can be used for technology transfer. A trade secret is any commercial formula, device, pattern, process, or information that affords an enterprise an advantage over others who do not know it. The information is not generally known and has value. Trade secrets must be maintained by avoiding public disclosure.

Methods of External Technology Transfer-3

Intellectual Property 

Another method for transferring technology is to transfer intellectual property, which is an intangible right that can be bought and sold, leased or rented, or otherwise transferred between parties in much the same way that rights to real property or other personal property can be transferred. Intellectual property can consist of patents, trade secrets, copyrights, designs, know-how, and trademarks. The transfer of intellectual property rights is an important and often substantial component of the technology transfer process. Intellectual property rights are most often transferred through contracts or licenses. I got a statement from roller shade blinds and woven wood shades blinds manufacturer. He says intellectual property transfer is most important and substantial component of this. 

Inventions and patents  

Invention is the act or process of discovering something new, physical or conceptual. A United States patent is an agreement between the United States government and the inventor. This agreement grants the inventor the right to exclude others from making, using or selling the invention for a defined period of time within the United States. The patent law of the United States Specifies that any person who “Invents or discovers any new and useful Process,    machine, manufacture, or composition Of matter, or any new and useful improvements There of, may obtain a patent”.

Methods of External Technology Transfer-2

The most frequently stated objective of co-operative and collaborative alliances is to develop or transfer new technologies. A worldwide trend is the use of partnership, strategic alliances, and other collaborative mechanisms to alleviate difficulties in all aspects of technological development. These partnerships provide faster and less costly methods to develop new technology products processes and services, e.g., SEMATECH, a collaboration of members of the United States Semiconductor industry. Co-operative R&D allow partners to reach critical structures more rapidly for large complex technology projects, e.g., the European Airbus Project.

Partnerships and strategic alliances allow merging of technological knowledge and skills from multiple enterprises, improving innovation in the chosen technology. Bidault and Cumings found that cross-industry alliances proved more innovative than alliances with competitors. These cross-industry alliances occur more frequently than in the past. However, these alliances have a high risk of failure and produce more incremental than radical innovations. 

Many characteristics of alliance are often in conflict with objectives of the technology development originally envisioned.

Technology driven cooperative and collaborative alliances can be managed through various enterprise structures. The strategic alliance all involves obtaining synergism through leveraging mutual resources. This also achieves diversification risk and mutual learning or technology transfer. Strategic alliances for technology transfer can be: 

·         Technical exchanges

·         Cross-licensing

·         Co-Production

·         Marketing agreements

·         Joint product developments programs

·         Joint ventures with equity ownership

Methods of External Technology Transfer-1

An enterprise can acquire or transfer technology through a number of formal mechanisms, which include: 

·         Co-operative and collaborative ventures

·         Licensing

·         Contracting

·         Enterprise acquisition 

Co-operative and Collaborative Ventures 

Co-operative and collaborative ventures are structures between two or more enterprises. These ventures can take various organizational forms. One form of venture is through equity in a jointly owned new enterprise. A general partnership is another form of venture where the partners can be competitors suppliers, or customers. The partners do not need to be limited to those within a single nation. Consortia consist of one or more enterprises including universities, industry and federal laboratories. Strategic alliances are an organizational format where two or more entities enter in to a formal agreement to jointly pursue certain technological objectives. The term of the enterprise of partnership can be limited or unlimited in duration. The degree of sharing resources can vary from little to total, or be limited to specific aspects of the shared objectives. Collaboration, according to Tucci among participants can take the form of research, exchanging proven technologies across single product line, joint development of one of more products, and collaboration across marketing and research. 

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External Technology Transfer-1

Today we are going to discuss on External Technology transfer

External Technology Transfer 

Successful external technology transfer depends on a number of factors including:

·         Type

·         Complexity

·         Transfer mechanism

·         Relationships

·         Core competencies

·         Organizational culture 

According to Hakansson and Snehota “no enterprise is an island”. Technology external relationships are an important strategic consideration for amplifying internal capabilities and skills. One benefit is the synergy effects upon value and cost, i.e., increased value through increased quality and reduced cost through sharing resources and learning curves. The networking potential of external relationships, leading to cascading positive impacts, is another result of external technological relationships. 

Studies of four hundred and ninety-two enterprises showed a relevance of technology-oriented relationships to an enterprise’s innovation capabilities. The R&D intensity and co-operation as determinants of technological innovation success. This illustrates that R&D external technology transfer contributes to reduce cost due to participating in R&D co-operation. 

Methods of External Technology Transfer 

An enterprise can acquire or transfer technology through a number of formal mechanisms, which include: 

·         Co-operative and collaborative ventures

·         Licensing

·         Contracting

·         Enterprise acquisition

Internal Technology Transfer-3

Still today we have already discussed on different topic like definition and classification, Channels of technology transfer, technical consortium types of technology transfer methods of technology transfer etc.. As a part of our talk today we continue our discussion on Internal Technology Transfer. The internal transfer of integration of technology is different due to the complexity of the technology being transferred from R & D or applied basic science to the product of production stage of development. Iansiti developed an information process framework, shown in for the development of products based on new innovative capabilities. It shows the informational relationship between research, technology integration, and the product development process. The model serves as a framework for understanding the development process of new technology, which has both a high level of complexity and component uncertainly. 

The process and success of the internal integration or technology transfer are associated with the overall effectiveness of the total enterprise developmental process. The research indicates that more successful enterprises are characterized by a system focused on the integration process. These enterprises emphasize the gathering of accurate information on how the technical factors would impact functionality and cost. This informational gathering is obtained prior to moving the technology from R & D to product development. The problems, which may occur in later stages of product development, are directly lined to the decision in the critical internal technology integration or transfer stage.

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Internal Technology Transfer-2

Deciding which staff members should be involved in the internal technology transfer process, according to Garvin is an element of the process Multifunctional teams composed of the developers and receivers of the technology are the most effective in insuring a smooth transfer. Communication between the various enterprise elements involved in the internal technology transfer process is a critical factor in the decision process. It is important to develop effective communication methods for bridging the cultural, informational and geographic differences that often-separate enterprise elements in an internal technology transfer process. Multifunctional teams with responsibilities throughout the entire project greatly enhance communication. Where multifunctional teams do not exist, there direct transfer of personnel and formal documentation can assist communication. 

The internal transfer of technology differs within an enterprise depending on the nature of the technology being transferred. The internal transfer of integration of technology is different due to the complexity of the technology being transferred from R & D or applied basic science to the product of production stage of development. Iansiti developed an information process framework, shown in for the development of products based on new innovative capabilities. It shows the informational relationship between research, technology integration, and the product development process.

Internal Technology Transfer-1

In large enterprises, technology is not often developed, produced and introduced through only one organizational element. This is changing through the use of multifunctional teams. However, the movement of a technology from an R & D team to manufacturing and then to marketing is a very complex process. The actual process of transferring technology within the enterprise involves a number of decisions. One of the decisions is on timing i.e., when the technology is ready to move from research and development to production and finally to market.  

The competing concerns for making this decision include customer needs, i.e., when are the technology at a stage to meet the customer requirements? The timing decision also depends on development of specifications and operating parameters that are sufficiently detailed to ensure efficient, repeatable production. Timing is a function of preemption of competition. A late market introduction can have significant adverse effects on technology profitability; however, premature release can also have major adverse impacts. The timing of internal technology transfer is critical. 

Location of technology transfer is a critical decision factor, which includes whether the new technology should reside in an existing or new portion of the enterprise.

We continue our discussion our next post. 

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