Commercial Advantages of Technology Transfer

Technology transfer is more about competition than about technology. Competition is an undeniable aspect of human nature; it is more than the Darwinian competition of survival of the fittest – competition amongst mankind is primarily about progress and development. Technology is the result of competition.

Thousands of years ago much of mankind progressed from a nomadic lifestyle to an agricultural lifestyle, whereby man planted crops and ultimately developed cities – such is the hunger of mankind for development. Such is the competitive nature of mankind that drives us forward in a non-stop struggle with ourselves to do something “better”; to build something “better”.

Underpinning this capacity for development is mankind’s innate ability to deal with technology: it is technology that enables progress.

One of the soundest measurements of the success of a company is whether it is growing in some manner. In order to acquire growth - new products are essential, new markets are essential, as new technology again underpins the development of the growth or expansion of any company.

Greater efficiency of production processes also leads to more competitive pricing, but generally those production efficiencies are gained from technology transfer.

Being the competitive creatures that we are, every company competes with one another, consciously, or not. One of the biggest questions of any entrepreneur or corporate leadership is, what is the competition is doing? Have they designed a better product at a better price, or are they in the process of such designs?

Globalisation and Local Manufacturers

Worse, with increasing globalization local manufacturers find themselves having to compete with larger companies that are exporting their products into the home territory of the local manufacturer.

Many smaller companies fail to recognize the changes in their local marketplace (i.e. demand for the imported product) until the smaller company is squeezed out of business.

And those “many smaller companies” have only themselves to blame for this unfortunate turn of events. For decades all of the texts books about commerce and business management have been stating clearly that change is inevitable, and if a business doesn’t grow and adapt to change, then surely its competitor will! By not changing, by not adapting to new technologies, many SMEs are simply closing the door on their future. By not changing with new technologies, one company is giving their advantages and their position in the market to the competitive company that does adapt to the changes.

The commercial advantages of not changing are zero. All our political, commercial and financial history is built on change.

Fears about the financial cost of change are not so relevant to the argument. Which is the greater cost, to cut the company profits because of strong competition? Or to close the company, because of an inability to meet the changes?

New technology will cost money, but at least the company will remain in business, producing further income for years to come.

Investment In Advanced Sciences

Many SMEs consider that it's impossible to invest in the technology of rocket-science or modern biotechnology – which is correct! No ordinary SME has access to the mega-millions required in rocket-science, but technology transfer is a common way of doing business in the most progressive economies in the world.

The major government bodies, such as the military forces or the prime education institutes can, and do, invest mega-millions into research; but often that research is transferred to the private sector.

Transferring technology to the private sector is highly effective amongst the G8 nations and is controlled by a number of serious Offices of Technology Transfer (OTTs) in some of the most famous universities in the world. For relatively small fees the OTTs make advanced technologies available to SMEs.

Through the EU Network of Innovation Relay Centres many SMEs can now have access to transnational technology transfers (TTT) and remain competitive in the SME’s market sector.

The biggest commercial advantage of technology transfer is simply remaining in business (instead of giving it all to the competitor). The same competitor that took access to new technology through an IRC office, or an OTT.

The Cost

Surprisingly, the large institutions that have invested so heavily in science, research, and technological development, are generally strongly interested in making their technology available to SMEs. These large public corporations do not expect SMEs to pay significant amounts of money for access to the new technology: frequently there is a negotiation based on a relatively small lump sum - followed by royalty payments according to the success of the product in the market place.

The large institutions recognise the value and the power of the entrepreneurs that form SMEs, and are quite prepared to support the SMEs by not making unreasonable demands for payments. The IRCs are able to act as negotiator or broker between the owner of the technology and the entrepreneur from the SME. It levels the "playing field" and makes it fair on both sides of the negotiation.

There are generally no fees charged by the IRC Network or IRC-Ege for this activity of brokering a transaction.