The paper "Technology Transfer Foreign Direct Investments and Global Value Chains" is an outstanding example of a business assignment. Technology transfer is a process that involves the movement of technology from an entity to another. The process of technology transfer can be deemed successful when the transferee, the receiving entity, is able to engage in the effective use of technology transfer and ensure its eventual assimilation (Ramanathan 2007). The process of moving technology involves technological knowledge, physical assets and know-how. In some situations, technology transfer may be confined to the relocation and exchange of personnel of moving of a specific set of capabilities.
Technology transfer has been used in referring to the movement of technology from the laboratory to industry, developed to developing countries or from one application to another domain. From a restrictive perspective, technology transfer is perceived as the movement of information and the application of information into use (Ramanathan 2007). There are economists who have analysed technology transfer based on the properties of generic knowledge, which focus on variables related to product design. There have been attempts to broaden the definition where they perceive technology transfer as the movement of skills, knowledge, values, organization and capital from their sources to their sites of adaptation and application (Smarzynska 2004). Technology transfer can also be perceived in the context of the diffusion of innovations.
This makes technology transfer a proactive process of dissemination or acquiring knowledge, experience and related artefacts. This means that technology transfer is an intentional and goal-oriented approach but not a free process. Technology transfer process further presupposes the existence of an agreement between the transferring and the receiving entity (Ramanathan 2007). Technology transfer can be classified as vertical or horizontal.
Vertical technology transfer model refers to the movement of technology from basic research to applied research for enhancing development initiatives. These research initiatives are then transferred to the production process. In horizontal transfer, there is movement and use of technology used in one location, an organization or context to its relocation, a different organization of context. Vertical technology transfer is an internal technology transfer while horizontal is an external technology transfer approach (Kaplinsky & Readman 2001). It is possible to perceive vertical technology transfer as a managerial process used in moving technology from one phase of its life cycle to another.
This is considered a valuable elaboration because it seeks reinforcement of the understanding that it is possible to ensure horizontal technology transfer at any stage of the technology cycle. There are also three types of transfer, which include material, capacity and design transfer. The material transfer is the movement of the new material product while design transfer relates to the transfer of blueprint and designs which can play the role of facilitating the manufacturing of the product or material by the transferee.
Capacity transfer entails the transfer of know-why and expertise to adapt and modify the product or material to suit numerous requirements (Ramanathan 2007). With the increasing trends in globalization, technology transfer is considered necessary because of the existence of different paths of development. There is a close relationship between technological levels and technological development paths. This means that different markets, countries and economies depend on one another for the realization of a unified worldwide standard of technology, worldview, culture and civilization (Morrissey & Almonacid 2004).
Successful technology transfer in the context of an economy happens when a developed economy succeeds in transferring skills, knowledge, resources to an underdeveloped economy. When the undeveloped economy or market succeeds in the development of implementation strategies, and develop a work plan on how to ensure success in the execution of technology transfer demands. In the context of agriculture and economics, technology transfer can be considered to have occurred when the transferee begins mechanization and computerization of agriculture. This is regarding the process of developing measures that focus on providing knowledge and skills to farmers in the form of training.
In addition, it also involves the development of collaborative initiatives between the transferee and the transferring country to ensure the acquisition of the right and most appropriate machinery for the realization of the technology transfer objective. The process of technology transfer adoption requires deliberations into the possible challenges that may be faced in the transfer process and the development of effective mitigation approaches (Jagoda & Ramanathan 2005).
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