From Technology Transfer to Technology Sharing and Alliances for Mutual Advantage Jatinder (Jeet) N. D. Gupta Eminent Scholar of Management of Technology College of Administrative Science University of Alabama in Huntsville Huntsville, Alabama, USA February 21, 2007

Three Waves of Economic Change 1. Agricultural Wave 2. Industrial Wave 3. Information/Technology Wave The transition from one wave to another takes a long period of dislocation depending on cultural acceptance of change The transition from one wave to another takes a long period of dislocation depending on cultural acceptance of change

The Third Wave Economy 1. Driven (enabled) by technology 2. Impacted by global issues 3. Utilizes knowledge as a resource/asset 4. Requires “instant” fulfillment of demand 5. Based on individuality and uniqueness 6. Results in a need for customization and flexibility

Managing in the Third Wave  Strategy: Pursue Renewal, Not Retrenchment  Customer Value: Match Competencies to Customers  Knowledge Management: Leverage Knowledge for Competitive Advantage  Business Organization: Organize Around Networks and Processes

Managing in the Third Wave (continued)  Market Focus: Find and Keep Strategic, Profitable, and Loyal Customers  Measurement and Control: Strike a New Balance Between Control and Empowerment  Shareholder Value: Measure the New Source of Wealth Creation - Intellectual Assets  Productivity: Encourage and Reward Value-Creation Work  Transformation: Collaborate to compete

Definition of Technology Technology is the confluence of multiple scientific disciplines tested and proven and put to use for a nation’s prosperity. Abdul Kalam President of India

Envisioning an Empowered Nation  President Abdul Kalam envisions to empower India through technology and a developed India by  However, without management of technology and its appropriate sharing and alliance, it is a difficult, if not impossible, to realize that vision.

Dominant Technologies 1. Information Technology 2. Biotechnology 3. Nanotechnology 4. Product Technology While there are other technologies, the above are the most powerful and emerging technologies from the transfer viewpoint.

Technology Transfer Process  A firm with superior technology enters into agreement with a firm without such technology to provide such technology.  It is considered technology transfer particularly if it is done from a developed nation to a developing nation.

Technology Transfer Process  For the technology transfer, receiving firm agrees to the terms and conditions proposed by the providing firm which also includes payment of royalties for the use of such technologies.

Benefits of Technology Transfer  The receiving firm can now take advantage of the technology to gain competitive advantage in the global markets  The providing firm can offset the research and development costs and hence can spend more on future technological developments.

Problems with Technology Transfer  Many studies have shown that technology transfer agreements: –De-motivate for the receiving firm to develop their own technological capabilities –Motivate to develop dependencies on the providing firm. –Create a sprit of non-innovation which results in lack of competitiveness over the long-term. –Reduce the flexibility that the firm can offer in the market place.

Problems with Technology Transfer  Uses the first or the second wave model in its design and operation.  Is based on the principle of competition and getting the most out of the other organization rather than collaboration and partnership.  Does not provide for dynamism and change.

Possible Solutions  Replace the term “Technology Transfer” with “Technology Sharing”.  Create strategic alliances and joint ventures rather than write technology transfer agreements.  Ensure that the concerned documents include provisions for technology enhancements, people development, and information/technology sharing  Cross-employ people involved in technology developments in the receiving and providing firms.

Suggested Context  Technology sharing assumes that: –Each partner has something important to share and contribute to each other. –Each partner is treated as an equal and must get rewards equally. –Each partner is treated as a dynamic entity where future requirements may change and hence the technology sharing needs may be different.  Thus, it is alliance of the equals for the benefit of the global society.

Management of Technology Sharing and Alliances  In order to create maximum value from technology sharing and alliances, the process must be managed  Left to itself, it could produce disastrous results and may lead to a lowering of societal values and norms.

What does it take to Manage Technology sharing process? At the macro-level:  Create a technology vision for the global society  Prepare a global technology sharing infrastructure  Develop educational and training programs in the management of technology sharing and alliances  Create and maintain knowledge depositories regarding technology sharing and related disciplines  Invest in making technology available to general public  Propagate the enabling feature of technology sharing and alliances  Develop policies and procedures to ensure equality and dynamism of technology sharing and alliances processes.

What does it take to Manage Technology sharing? At the micro-level:  Create a plan to manage technology sharing within a receiving and a providing firm  Create a mutually agreed upon R&D plan for technology development  Develop enabling viewpoint and infrastructure for technology sharing and alliances  Empower people to effectively use, develop and alter technology applications covered by the technology sharing agreements  Rewrite technology agreements so as to reward innovation and knowledge creation rather than inhibit them.  Share, retain and manage knowledge and intellectual capital between the receiving and providing firms.

Need for New Educational Programs  New educational programs in technology sharing, alliances and/or knowledge management need to be created and supported  Interdisciplinary research and learning requires the programs to involve people from different backgrounds  Continuous revision and updating of such educational programs are essential.  Creation of flexible educational programs

Concluding Remarks  Technology transfers may have been oversold and may have over-lived their usefulness.  Technology transfer obsession can have negative impact in enterprises and societies  More research is needed to understand the social impact of technology sharing and alliances  Perhaps we need to go back and study the rise and fall of technological civilizations  Management of technology sharing and alliances is an imperative for the transformation of a developing economy to a developed economy.  Educational programs need to be created and supported in technology sharing, alliances and knowledge management  National policies related to technology sharing infrastructure and support need to be developed, implemented and used.  Research and development is needed to develop appropriate strategic alliances and joint ventures that are dynamic and future oriented rather than static. Thus, we need to know lot more about technology transfer, sharing and alliances development and management and its processes to reap its full benefits.

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