👉 The transfer of intangible goods to make scientific findings economically usable
What is technology transfer?
Technology transfer refers to the transfer of technical knowledge. Through technology transfer, knowledge is made economically usable. For example, scientific and technical results, experience and skills from research and development are transferred to industry in order to enable or improve products, processes and services.
In this context, technology is any kind of measure, device and process with which the findings of the natural sciences can be made usable for humans.
Knowledge, in this context, is such know-how or skills and experience that can be applied to solve problems, produce things, or provide services. Know-how means, in particular, specialist knowledge, practical knowledge, expertise for practical implementation.
Economic progress, the creation of wealth, is increasingly based on knowledge. This can be the individual knowledge of a single person, or the collective knowledge, for example, about a manufacturing process in an entire industry. This knowledge is usually created through research and development. This can be done at universities, in companies, in research institutions or with individual individuals.
Therefore, there are different directions and actors of technology transfer. This takes place, for example, between:
- Universities/colleges and business, especially companies
- Miscellaneous companies
- Different locations or subsidiaries of a group
- Industrialised nations and developing countries and emerging economies
How does technology transfer take place?
A distinction can be made between different types of technology transfer. Here are the most important types:
- Technology transfer
This takes place when objects such as machinery or equipment are transferred from one company to another or from one country to another. Knowledge is then transferred through consulting, training and further education of operating and maintenance personnel. The recipient can also gain knowledge through mere delivery. Knowledge can also be transferred by changing, developing and adapting the objects. - Sale or licensing of IP
For example, patents, know-how, trademarks, designs or other IP, including in franchise systems. - Between third-party or affiliated companies
For example, to business partners to enable production technology, or to enable customers to use a machine in the best possible way. - Teaching, training, education and training
For example, by sending consultants to teach the use of a technology. - Documentation and media
A wide variety of data carriers and storage media can be used to transfer technological knowledge such as manuals, videos, cloud data, holograms, AR/VR tutorials, etc.) - Active or passive
This differs in the extent to which the transferee supports the transferee in the transfer and utilization of knowledge.
Important in the question of “how” technology transfer takes place are the challenges in technology transfer: challenges can include ensuring the quality of the transferred knowledge, protecting intellectual property, adapting the technology to new contexts, and navigating through regulatory hurdles.
Why does technology transfer take place?
Knowing how to do it alone does not lead to economic success. This means that technology transfer serves to ensure that the knowledge generated by research and development is transferred to where it can generate economic added value. Technology transfer takes place for several reasons:
- Exploitation of knowledge
Technology transfer enables the external exploitation of technological knowledge. The exchange makes it possible to make this knowledge available to third parties. - Economic progress
Technology transfer does not serve as a goal, but as a means of increasing economic growth, profitability and thus prosperity. The reason for this is the increase in the degree of use of the technology. - Collaboration
When different actors pool their knowledge and technological know-how, it can result in something that they would not be able to develop with their partial knowledge alone. - Developing countries
Developing countries are heavily dependent on technology transfer due to technological backwardness. - Cost-effective production sites
The use of low-cost production sites is a major reason for technology transfer. This means that empowerment through technological knowledge takes place where the prices for the factors of production (e.g. energy, labour, water, etc.) are more favourable than where the knowledge comes from.
What is the role of IP in technology transfer?
Intellectual property (IP) plays a crucial role in technology transfer. It includes various forms of protectable inventions and creations, such as patents, trademarks, copyrights, and trade secrets.
In the context of technology transfer, IP allows inventors or intellectual property owners to protect their technologies, products or processes while allowing them to be used by others. This is usually done through licensing agreements, where the IP owner (often a research institute or company) grants another company the right to use the proprietary technology.
IP transfer is particularly important in scenarios such as franchising or spin-offs, where the business model is built on the IP of the parent organization. In such cases, the parent company can grant a license to the spin-off that allows it to use the proprietary technology.
In addition, IP can also serve as a tool to promote innovation and economic growth by allowing companies to commercialize their technologies while protecting their investments in research and development.
We also speak of so-called mixed license agreements when knowledge/know-how is transferred in addition to a patent license. In addition, we also speak of so-called mixed knowledge transfer, which refers to a combination of different forms of knowledge transfer, whereby a distinction is made between two main forms:
- Personal knowledge transfer
This involves exchanging and discussing knowledge and experiences on a personal level. This can be, for example, in the context of informal discussions or in the context of workshops, trainings, tutorials or special further work concepts. - Codified knowledge transfer
A transfer of knowledge via special communication and information systems is called codified knowledge transfer. Long-term databases are of particular importance here.
So, blended knowledge transfer means, for example, that employees share their knowledge in informal conversations (personified knowledge transfer) and this knowledge could then be stored in a database (codified knowledge transfer) for future use.
How important is technology transfer?
The economic importance of knowledge and technology transfer is steadily increasing for several reasons:
- Competitive advantages
Companies that effectively share and share knowledge can gain a competitive advantage. This can lead to higher productivity and innovation. - Avoid loss of knowledge
Knowledge transfer can prevent the loss of knowledge, especially when key specialists or managers leave the company. - Shorter project durations
The transfer and exchange of knowledge within a company is central to the fast and successful completion of projects. This is particularly necessary due to ever shorter product life cycles and increasingly complex technologies and products. - Knowledge growth
As a result, knowledge continues to grow as a resource in its own right during transfer processes. - Globalization
In the modern globalized world, the exchange of knowledge between different regions and cultures is crucial for wealth creation. - Access to innovative technologies
Technology transfer allows companies to gain access to novel technologies that they would otherwise not have been able to develop themselves. This allows them to expand their offerings, outsource their R&D activities, and improve their products and services to attract new customers and increase their market share. - Shortness “Time-to-Maket”
Technology transfer enables companies to bring their new products and services to market more efficiently and quickly. It also allows them to react more quickly to changing market conditions and customer demands. - Systematic competitive advantages
Companies that use technology transfer can gain an advantage over their competitors by using innovative technologies to optimize their processes and improve their products and services. This allows them to better serve their customers and strengthen their position in the market. - Cost savings
Technology transfer can lead to significant cost savings, as companies do not have to bear the costs and risks of their own technology development. Instead, they can use existing technologies and quickly integrate them into their business processes, for example through licensing. This is especially true in view of the increasing complexity of products and technologies and thus an increasing development effort.