Search

defense

What Does Technology Transfer Mean?

Technology transfer; It is defined as “the transfer of technical knowledge necessary for the establishment and operation of a new production unit, which is scarce or absent in developing countries”.

Technology transfer:

The technology levels of the underdeveloped countries are naturally backward. New technology development opportunities are limited. The access of these countries to new or advanced technologies mostly has to occur through technology transfer.

Technology transfer; It is defined as “the transfer of technical knowledge necessary for the establishment and operation of a new production unit, which is scarce or absent in developing countries”.

Technology transfer is a transfer process. It occurs as the transfer of scientific or technical knowledge of design, engineering, manufacturing and production techniques from one industry branch to another, from one country to another.

Everything Imported Doesn't Mean Technology Transfer:

Transfer of general reference documents such as military standards, specifications, manuals or commercial documentation for device use is not covered by technology transfer.

Technology transfer is an important resource for companies, sectors and countries that have not been able to produce their own technology. Technology transfer through foreign direct investments, patents, licenses and know-how (i.e. implicit or explicit learnable knowledge of how to do something) is a tool for both increasing national technology efforts and providing national technological talent accumulation.

Technology Capability Indicators:

Structure and performance indicators, education indicators, and science and technology indicators can be counted as national technological capability indicators. Technological Capability Indicators inspired by Lall's work are summarized in the table below.

Technological Innovations Are Protected by Patent Laws:

In industrial technology production, multinational companies and developed countries are almost monopolistic. These companies generally concentrate their R&D activities in the country where their headquarters are located. Innovations are protected by proprietary or patent laws. Every new invention cannot be produced and imitated by others without the approval of the company and country that produced it. The patent system protecting intellectual property rights was partially regulated in England by the Monopoly Law enacted by the British Parliament in 1623 as an attempt to prevent the king from arbitrarily granting patent certificates to anyone he wanted and to ensure that special rights were actually granted to those operating in certain fields or establishing businesses.

Underdeveloped countries therefore need technology transfer for their manufacturing industries. In addition, multinational companies that have a say in developed countries and/or international markets tend to protect patenting, intellectual property and license rights as an international competitive strategy in terms of technology production and their efforts to market them.

Global Value Chain:

Another approach to these issues is the reality of the global value chain (GVC). In the process of creating a global value chain, large multinational companies operate in a business environment based on vertical relationships that cross borders. While subcontracts are signed with host country companies, sustainable local relations are developed through joint ventures. In addition, these value chains offer important learning opportunities. Significant amounts of complementary knowledge and skills are provided to flow from main contractor multinational companies to companies in developing countries through these channels.

The Priority is to Improve the Quality of the Workforce:

The "creative" quality of mental labor (the ability to create new technology), which is used to produce new technologies, is, in a way, a criterion of desire for developing countries. The important thing is the quality and amount of the workforce that can effectively use the existing technologies in the first place. Instead of rediscovering the known, looking for ways to make maximum use of the known through adaptation, that is, transferring technology; It will be a more rational behavior for developing country producers. From a macro point of view, in order to talk about a real technology transfer, the party receiving the technology must internalize it, incorporate it into its products and production processes, and benefit from its sale or marketing.

Innovation Formation Process:

When the formation process of innovation is examined, two types of innovation can be mentioned:

  1. Innovations based on national (or internal) technological effort,
  2. Innovations based on labor and/or technology transfer.

Especially in the context of technology transfer as a source of innovation, if a country does not have the technology it needs (and the labor power to develop, effectively use and commercialize the technology) for its purposes, technology transfer and the innovations that emerge after the transfer come to the fore.

Technology Absorption Ability:

The method used in technology transfer is determined by factors such as the nature of the technology, the strategy of the donor country and firm, the ability of the receiving firm to absorb technology, and the industrialization policy of the receiving state. Absorbing ability is the firm's ability to recognize, adopt, digest and apply a new information or technology to a new commercial purpose-product. The important thing is the harmony and assimilation of the acquired technology. Appropriateness of technology and resource selection for developing countries is the key to success. If the technology gained by choosing among the alternatives based on a good analysis contributes to the formation of a strong and reliable scientific and technical infrastructure in the country that buys it, raises the technology level of the country, contributes to the development of technology and to gain a comparative advantage in the products produced, then that technology transfer has been successful.

International Technology Transfer:

International technology transfer; It consists of successive processes such as monitoring the technological developments in the world, selecting the technologies needed (knowledge, skills, machine system, etc.), importing the selected technologies into the country, starting production by adapting the imported technologies to national conditions and needs, developing and spreading the technology. Therefore, international technology transfer is a process that includes the assimilation, adaptation, application, even development and dissemination of acquired technologies. Developing countries can “buy” technology, but if the technology transfer desired to take place cannot focus on “know what for” or “know why”, the country remains at the level of only user of that product.

References:

Acemoğlu D, Robinson JA. (2018). Ulusların Düşüşü, Güç, Zenginlik ve Yoksulluğun Kökenleri, Velioğlu, FR (Çeviri editörü). 34. Baskı, İstanbul, Doğan Kitap.

Macdonald S. (1990). Technology and The Tyranny of Export Controls, Whisper Who Dares, Palgrave Macmillan, USA.

Menezes JE. (1989). The Brazilian Aerospace Industry: A Case Study of the Technological Impact of Offset Agreements in a Recipient Country, Submitted in Partial Fulfillment of The Requirements for the Degree of Master of Science In Management from the Naval Postgraduate School, Monterey, USA.

Şahin E. (2007). Alternatif Bir İktisat Politikası Olarak Bilgi  ve Teknoloji Temelli Kalkınma (Yüksek Lisans), Abant İzzet Baysal Üniversitesi Sosyal Bilimler Enstitüsü İktisat Anabilim Dalı, Bolu <https://tez.yok.gov.tr/UlusalTezMerkezi/TezGoster?key=wBmNpkQC9Nhi90NLW7E7-b4ztdoIT2Bu6k0R1uMvd4rkAe-wJFWcSMQ9_zy0rZKQ>, s.e.t. 10.06.2017.

Tiryakioğlu M. (2016). Yabancı Sermaye, Teknoloji ve Kalkınma İlişkisi, Yoksulluk Tuzakları, s.550-562 içinde Akçomak İS. vd. (2016). Bilim, Teknoloji ve Yenilik, Kavramlar, Kuramlar ve Politika, İstanbul Bilgi Üniversitesi Yayınları 561, İstanbul, 1. Baskı.

Dr. Hüseyin FAZLA
Ph.D Hüseyin FAZLA
All Articles

  • 20.04.2022
  • Time : 4 min
  • 4066 Read

Google Ads