Roundtable II
Cooperation in Technology Transfer
Tuesday, 29 November 2005
Vienna, Austria
Structure of the Presentation
 Technology Transfer - Insight
 Technology Competitiveness in Developing countries - Factors
 Technology Upgradation - Hindsight
 Technology Development – Challenges
 India – Case studies
 Technology Transfer – Way Ahead
Technology Transfer - Insight
Technology Transfer
Phases
Technology
acquisition
Technology Transfer
Skill Development Know How
Forms
Knowledge
Management
Patents &
Licenses
Technology
adaptation
Dissemination
Increases production efficiency - Long Term competitiveness of SMEs
Technology Transfer - Process
Technology Creation
Technology Sourcing
Knowledge
Innovation
Development
Testing
Identification
Verification
Design
Modification
Testing
Evaluation
Awareness
Decision Making
Application
Brokering
Technology Transfer is the suite of processes encompassing all dimensions of the
origins and uptake of know-how, experience and equipment amongst, across and within
countries, organizations and institutions.
Technology Transfer – Main Issues
 Slow uptake of technologies that support sustainable
development, despite many initiatives for increased and effective
transfer of technologies.
 Need to emphasize on specific and practical methodologies and
tools for promoting the adoption and use of latest technologies.
 Absence of ubiquitous approach. Need to prioritize initiatives for
developing countries depending on their needs and status.
Technology Competitiveness in
Developing countries - Factors
Technology Competitiveness in Developing
countries - Factors
 Technology imports
• Small number of developed countries provide most of technological
innovations. Most of the developing countries are neither innovating
nor adopting. <Technology innovating economies..>
• Lacks capability to create globally competitive technologies
• Lack of access to information on new technologies and innovations
 Technology infrastructure
• R&D institutes and testing facilities in developing countries fall short
of quality when compared to industrialized countries
• Lack of collaborative research
• Isolation of universities and R&D from Industry
Technology Competitiveness in Developing
countries - Factors
 Pace of technological change
• SMEs lack the capability to constantly upgrade technologies in view
of rapidly changing technologies in developed countries
• Easier in Process industries
 Technology acquisition
• Unit level technology absorption is low
• Lack of incentive, direction and capability to update existing
technologies
• Lack of ready access to capital
• Relatively high transaction cost
Technology Competitiveness in Developing
countries - Factors
 Unit Level Interventions
• Smaller firms find difficult to finance and coordinate the requisite
level of technological activity
• Low participation in network of organizations and institutions
involved in diffusing information on technologies. (specially SMEs)
 Availability of Skilled Manpower
• Shortage of trained personnel
• Lack of continuous capability development of manpower in technical
dimensions
• New technologies are not adopted due to lack of skilled people thus
widening the technology gap.
Technology Upgradation - Hindsight
Knowledge Drivers of the 21st Century
NANOTECH
NETWORKS
ATOMS
NEURONS
BIOTECH
GENES
Building
Blocks &
Knowledge
tools of
21ST
Century
COMPUTERS
BITS & BYTES
Technology Foresight Process Summary
Demography
Define the question(s)
Economics
‘Global’ Trends
Environment
Society
Government
technology
Business Vectors
Technology Dynamics
Growth Opportunities
Organization’s
Power Assets
Emerging Growth Opportunities
©L Carlson Consulting
Technology Interaction Matrix
Pacer, Gating
2nd order effect
Exponential
Software
Micro-elec.
Med. Dev.
H/M Int.
Sensors
Photonics
Wireless
Biotech
Nanotech
Adv. Mat.
Enabling
Power
Application Needs
ICT Support to Design
RDCS: Robust Design Computation System
ICT Support to Product Design
OIS: Design – Manufacturing – Customer
Feedback : Integrated Model
ICT Support to Manufacturing
Customer Relationship Management (CRM)
Customer Relationship Management (CRM)
 Systems that allow you to manage relationship
 Strategy that puts the customer first, it's getting intimate
with the customer - solidifying loyalty




Understanding and tracking customer habits
Links data together from all parts of the business
Warehouse of all the info of your customer
Maximizer, ACT!, Salesforce.com, Pivotal
Nanotechnology Applications
Building blocks
Coatings and surfaces
Environmental, energy,
health & safety systems
Consolidates and
composites
Biochemical
Dispersions &
structures
Biodevices
and systems
NSEC
Processing and
integration
System architectures
NanoTechnology
Research
MRSECs,
STCs, ERCs,
IUCRCs
NNUN
PhotonicsOptics
Electronic-magnetic
systems
Modeling tools and instruments
Management of applications matter !
Technology Development –
Challenges
Technology Development - Challenges
 Can be met through innovations management
 To be able to invest in technology creation at the risk of failing
 Adequate infrastructure required for technology creation
 IPR issues
 Adequate information relevant to strategic planning and market
development
 Developing countries have already lost precious time
 Creation of useful and usable technologies is a major factor in
ensuring that there is opportunity to make informed and confident
choices in technology investment projects
Technology Creation should be best left for developed countries.
Developing countries should focus on adapting, learning and
dissemination.
India – Case Studies
Machine Tools sector in India
 A holistic programme implemented by UNIDO-ICAMT (International Centre
for Advancement of Manufacturing Technology).
 Emphasis on Technology dissemination through sensitization workshops,
unit level interventions, participation in International fairs, Technology
missions, skill upgration and market development activities.
 Growth in 2004-05 was 47%
 Annual growth of over 90% in the number of CNC machines production in
the last two years.
 50% increase in production of components and accessories.
 101% increase in export of target group of machine tools – from USD 6.6
million to USD 13.3 million
While the Technology innovation is still low, the sector has done extremely
well due to Technology dissemination, Skill upgradation, Unit level
interventions & market development activities.
Auto Components sector in India
 Indian auto component industry has grown from US $ 3.9 Billion to US
$ 6.7 Billion in 3 years
 Exports have increased from US $ 578 Million in 2001-02 to US $
1000 Million in 2003-04.
 India has become the 2nd largest two wheeler manufacturers in the
world
 Increased competitiveness is due to increased capability of latest
technologies for continuous improvement when compared to other
countries.
 Emphasis on process engineering skills, product engineering and
continuous improvement capability.
While the Research & Development activities are still at low level, the sector
has witnessed phenomenal growth due to application of ICT tools,
Technology dissemination, Skill upgradation, Knowledge management in the
area of Engineering Design.
Indian Software: Global Brand
By Verticals:
25,000
21,500
USD Million
Manufacturin
g
13%
20,000
15,900
15,000
12,450
10,100
10,000
8,470
Domestic
Exports
Total
12,500
9,870
Telecom
Equipment
6%
BFIS
37%
6,300
5,000
2,170
2,580
3,400
4,500
By Geography:
0
2000/01
2001/02
2002/03
2003/04
2004/05
Year
Software & Services Grow over 30
%
Others
25%
17,000
7,680
2,420
Retail
6%
Telecom
Service
7% Health Care
6%
North
America
68%
W. Europe
21%
Japan
2%
Latin
America &
Asia Pac ROW
3%
6%
~ 80% of Fortune 500 outsource their IT from India
Source: NASSCOM
India: Fast Growing Market …
India Hardware Industry projected at US $ 69 billion by 2008
4 million PC Shipments – 2004
65 million mobile subscribers
2.5 million broadband in 2004
- 2004
10 million broadband in 2008
14 Mil PC Shipments - 2008
200 M Mobile subscribers by
1 million Set Top Box – 2004
15 million Set Top Box - 2008
2007
•
More than 3 million cell phone
subscribers added every month
•
Sub $ 40 Mobile Phone
•
Sub $ 225 PC ‘s would increase
PC penetration.
9.25 million TV Sets – 2004
16 million TV Sets – 2008
Indian IT Industry
Industry Turnover (2004-05)
Hardware Domestic:
Hardware Exports:
Software Exports:
Software Domestic:
Industry Turnover by 2008:
US $ 27.75 billion
US $ 5 billion
US $ 1.25 billion
US $ 17 billion
US $ 4.5 billion
More than US $ 100 Billion
While the Research & Development activities have been low, the sector has
witnessed boom due to knowledge workers, Skill upgradation & capability
development.
Indian Telecom Sector
From
To

Monopoly service providers

Competitive regime with multiple
players (public & private sector)
across service segments

Peak long distance tariff from Delhi to
Mumbai of Rs.30/minute ($
0.65/minute)

Rs.2-3 per minute ($ 0.04-0.07/minute)

Rs.1-2 per minute ($ 0.02-0.04/minute)

48 mn fixed line subscribers
including FWT and Limited mobility
CDMA

56 mn mobile subscribers
Competition
Tariffs

Peak cellular outgoing tariff of
Rs.16/minute ($ 0.35/minute)

18 mn fixed line subscribers in March
1998

<1 mn cellular subscribers in March
1998
Subscribers

Total industry revenue of US$ 4 bn in
FY98

~ US$ 18 bn for FY05

<2% telephony penetration in March
1998

9.37% penetration

No regulator

Independent and active regulator
(TRAI) and appellate tribunal (TDSAT)
Industry Size
Penetration
Regulator
TRAI: Telecom Regulatory Authority of India; TDSAT : Telecom Disputes Settlement and Appellate Tribunal
Indian Telecom Sector - Latest Technology at Affordable Prices
 National policy is technology neutral but encourages global state of the
art technologies
 All leading equipment and handset vendors have established significant
presence in India
 They have been instrumental in making mass wireless service viable
 Capex / sub has dropped from US$300-400/sub to US$70-80/sub
 Entry handset prices have dropped from US$400-500 to US$50
 Coexistence of dual wireless technology – CDMA and GSM
 Growth at the rate of 30%
Leapfrogging in Technology Adaptation has attributed to Telecom boom.
PAN-African Network
 53 PAN-African countries to be connected as one network
through Satellite and Fiber Optics
 Network to provide:
•
•
•
•
•
•
•
Tele-education
Tele-medicine
VVIP communication network
Internet
Videoconferencing
VOIP services
Support e-governance, e-commerce, infotainment, resource mapping
and metrological services
PAN-African Network
 To connect 5 universities to 53 learning centers, 10 Super
specialty hospitals to 53 Remote hospitals in rural areas
 Indian Institutions to only make the programme running till the
expertise is passed on to PAN-African countries
 PAN-African network will be established, maintained and
managed within a period of 3 years.
 Handholding training will be imparted to the users and handed
over by the end of 3 years
Novel way for sharing of knowledge & technology
Technology Transfer – Way Ahead
Technology Transfer in Developing countries – Road Map





Establishment of International Technology Centres
Adopt demand-driven approach
Focus on specific industrial sectors
Establish Technology Trackers in leading industrialized countries
Encourage application of technologies at the enterprise level through rapid
build up of awareness of need, diagnosis of economical requirements,
technology transfer management etc
 Emphasis on capability development
 Establishment of cooperative and collaborative partnerships between key
stakeholders
Technology Transfer in Developing countries – Road Map
 Implementation of technology driven programmes
 Focus on technology areas of core competence and with cross
sectoral impact demand of developing countries, thus increasing the
international activities.
 Design and implementation of technology transfer plans and specific
actions
 Dissemination of technology information – access to reliable and
relevant information




Skill development activities
Provide outreach programmes for SMEs for effective dissemination.
A system that minimizes contractual and other legal risks.
Access to Decision Support Tools.
Technology Upgradation – Key Focus Areas
Key
Drivers
Others
Technology Innovations/R&D
Global Benchmarking of Quality
Market access
ICT Applications to Technology &
Management Processes
Technology Dissemination
Capacity building
Skill upgradation
Thank You
Technology Innovating Economies
US-Patents per million population
USA
314.43
Japan
Taiwan
260.99
239.78
Switzerland
Sweden
Israel
195.65
195.65
163.32
Finland
Germany
Canada
140.21
135.73
115.80
Denmark
89.55
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