Innovation Strategy Management Lecture 14 Lecture 15

Programme Part 1 – The basis of Innovation Part 1 – The basis of Innovation Part 2 – Innovation and New Product Development Part 2 – Innovation and New Product Development Part 3 – Innovation and Technology development Part 3 – Innovation and Technology development Part 4 – Innovation and Intellectual Property Part 4 – Innovation and Intellectual Property Part 5 – EU Green paper of Innovation Part 5 – EU Green paper of Innovation Part 6 – Innovation policies in different countries Part 6 – Innovation policies in different countries

Part 3 Innovation and Technology development

Lecture 14: Technology Transfer and innovation I Introduction to technology transfer Introduction to technology transfer Models of technology transfer Models of technology transfer Limitations and barriers to technology transfer Limitations and barriers to technology transfer Internal organizational factors and inward technology transfer Internal organizational factors and inward technology transfer

The role of technology Transfer in Innovation The dominant economis perspective The dominant economis perspective Information transfer and technology transfer Information transfer and technology transfer

Technology Transfer is the application of technology to a new use or user. It is the process by which technology developed for one purpose is employed either in a different application or by a new user. The activity principally involves the increased utilisation of the existing science/technology base in new areas of application as opposed to its expansion by means of further research and development. Technology Transfer is the application of technology to a new use or user. It is the process by which technology developed for one purpose is employed either in a different application or by a new user. The activity principally involves the increased utilisation of the existing science/technology base in new areas of application as opposed to its expansion by means of further research and development. Langrish et al. (1982)

The process of promoting technical innovation through the transfer of ideas, knowledge, devices and artefacts from leading edge companies, R&D organizations and academic research to more general and effective application in industry and commerce. The process of promoting technical innovation through the transfer of ideas, knowledge, devices and artefacts from leading edge companies, R&D organizations and academic research to more general and effective application in industry and commerce. Seaton and Cordey-Hayes (1993)

The tangibility of knowledge

Models of technology transfer (11) Licensing (1) Licensing (1) patents patents trademarks trademarks copyright copyright

Other reasons for licensing are (Rothberg, 1976): Other reasons for licensing are (Rothberg, 1976): to avoid or settle patent infringement issues to avoid or settle patent infringement issues to diversify and growth the addition of new products to diversify and growth the addition of new products to improve the design and quality of existing products to improve the design and quality of existing products to obtain improved production or processing technology to obtain improved production or processing technology to ensure freedom of action in the companys own R&D programme to ensure freedom of action in the companys own R&D programme to save R&D expense and delay to save R&D expense and delay to eliminate the uncertainty and risk involved in developing alternative processes and technology to eliminate the uncertainty and risk involved in developing alternative processes and technology to accommodate customer needs or wishes to accommodate customer needs or wishes to qualify for government and other desirable contracts. to qualify for government and other desirable contracts.

Science park model (2) Science park model (2) Started in the US Silicone Valley Started in the US Silicone Valley Intermediary agency model (3) Intermediary agency model (3) Regional Technology Centres (RTC) Regional Technology Centres (RTC) university technology transfer managers university technology transfer managers

Directory model (4) Directory model (4) Derwent World Patents Derwent World Patents Technology Exchange Technology Exchange Technology Catalysts... Technology Catalysts... US universities offer directories of technologies too US universities offer directories of technologies too Teaching Company Scheme model (5) Teaching Company Scheme model (5) state funded programme between universities and SMEs state funded programme between universities and SMEs

Ferret model (6) Ferret model (6) from Defence Technology Enterprises (DTE) from Defence Technology Enterprises (DTE) Hiring skilled employees (7) Hiring skilled employees (7) Technology transfer units (8) Technology transfer units (8) US Federal Labs US Federal Labs University departments University departments British Technology Groups... British Technology Groups...

Research clubs (9) Research clubs (9) M62 Sensors and Instrumentation Research Club M62 Sensors and Instrumentation Research Club European Space Agency (ESA) (10) European Space Agency (ESA) (10) Consultancy (11) Consultancy (11) multibillions 1990 multibillions

Limitations and barriers to technology transfer NIH syndrome (not invented here) NIH syndrome (not invented here) reject new ideas from outsiders reject new ideas from outsiders

Conceptual framework of technology transfer and inward technology transfer

Internal organizational factors and inward technology transfer /on company level/ /on company level/ Innovators: the first adopt a new idea Innovators: the first adopt a new idea Initiators: the first after innovators Initiators: the first after innovators Fabians: adopt idea after widely used in industry Fabians: adopt idea after widely used in industry Drones: the last firm to adopt new ideas Drones: the last firm to adopt new ideas 1) technology-driven SME 2) technology-following SME 3) technology-indifferent SME

Factors that would foster technology transfer: Factors that would foster technology transfer: High quality of incoming communication High quality of incoming communication A readiness to look outside the firm A readiness to look outside the firm A willingness to share knowledge A willingness to share knowledge A willingness to take on new knowledge, to license and enter joint ventures A willingness to take on new knowledge, to license and enter joint ventures Effective internal communication and co-ordination mechanisms Effective internal communication and co-ordination mechanisms A deliberate survey of potential ideas A deliberate survey of potential ideas Use of management techniques Use of management techniques An answer of costs and profits in R&D departments An answer of costs and profits in R&D departments Identification of the outcomes of investment decisions Identification of the outcomes of investment decisions Good-quality intermediate management Good-quality intermediate management High status of science and technology on the board directors High status of science and technology on the board directors High-quality chief executives High-quality chief executives A high rate of expansion A high rate of expansion

Lecture 15: Technology Transfer and innovation II Developing a receptive environment for technology transfer Developing a receptive environment for technology transfer FEMIRC, IRC FEMIRC, IRC Identify external technology Identify external technology Managing the inward transfer of technology Managing the inward transfer of technology

4A conceptual framework of technology transfer ActivityProcess Awareness Describes the processes by which an organization scans for and discovers what information on technology is available Association Describes the processes by which an organization recognizes the value of this technology (ideas) for the organization Assimilation Describes the processes by which an organization communicates these ideas within the organization and creates genuine business opportunities Application Describes the processes by which an organization applies this technology for competitive advantage

Identifying external technology: the importance of scanning and networking Linking external technologies to internal capabilities Linking external technologies to internal capabilities

Sources of information from scanning and networking

Creating business opportunities through association: a concept framework for the development of genuine business opportunities

Managing the inward transfer of technology final stage final stage application of the business opportunity for competitive advantage application of the business opportunity for competitive advantage Technology transfer and organizational learning Technology transfer and organizational learning

The inward technology transfer process

Individual and organizational learning: integrated model of knowledge

The Braille dot cell and the Braille alphabet