Conceptual model of platform for effective information technology transfer within the AsiaPacific re

1
Conceptual model of platform for effective
information technology transfer within the
Asia-Pacific region
APT Study Group

• Study Group 3
• APPLICATION AND SERVICE
• Study Question 3.4
• Jun Yoo-duk (jyd_at_iita.re.kr)

2
CONTENT

• Introduction
• Objectives of the study
• ICT technology Development strategy
• Make or Buy Analysis
• Technology Outsourcing
• Technology Transfer
• Technology Transfer
• Technology Transfer In Asia-Pacific region
• Asia-Pacific region Technology-Performance
• Sample model of technology Transfer Center
• Why technology transfer is needed in Asia-Pacific
  region
• Conclusions

3
Objectives of the Study
Introduction

• Objectives of APT
• Promote the expansion of telecommunication
  services and information infrastructure and the
  maximization of the benefits of information and
  telecommunications technology for the welfare of
  the people in the region
• Encourage technology transfer, human resource
  development and the exchange of information for
  the balanced development of telecommunication
  services and information infrastructure within
  the region 
• Objectives of the study
• To promote Technology development and transfer
  available to the Asia-Pacific region by
  considering different technology depths and
  infrastructures among nations.

4
Technology development strategy of developing
countries
Introduction
Marketing Strategy
Financial Strategy
Business Strategy
Production Strategy
The Other Strategy
Technology Strategy
International Economic Technology Environment
Domestic Economic Technology Environment
Policy Implication
Econometric Analysis for Policy Impact
Comparative Analysis for Policy Implication
Source song Lee, 2002
5
Introduction
IT Tech. Development strategy
Source Choung, 2001
6
Make(RD) or Buy(Outsourcing) Analysis
Introduction
Minimize RD
Buy
Maximize RD
Joint venture or Licensing In
Joint RD
Source Bae, 2002
7
Outsourcing
Introduction

• Framework of outsourcing
• WHY why consider outsourcing at all and the
  circumstances in which this may be the optimum
  solution for an organization
• WHAT what to outsource
• WHOM selection of suppliers
• HOW conditions in which outsourcing will work
  most effectively
• Buying external RD types
• Outsourcing any process of putting work
  externally or transfer in-house activities to
  suppliers
• Resourcing work is brought in
• Sub-contracting paying a third party
• Collaboration sharing resources ie parties
  share similar or complementary competencies.

Source Choung, 2002 IT Technology Development
Strategy
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WHY
Introduction

• Environment
• Globalizations, pace of technological
  advancements
• Shorter product life cycles
• Product development and speed to market become
  more important for maintaining competitive
  advantage
• Changing corporate strategy
• Business trends
• Buying in other activities from external
  suppliers
• Changing role of corporate RD
• Decentralized and diversified
• Centralization

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Introduction

• Motivation for outsourcing
• Business focus
• Transfer of responsibilities for management or
  delivery of non-core activities to organization
  to focus better on core activities
• Financial performance
• turnover per employee reducing costs because of
  benefits of scale sharing costs and risks with
  partners in the same industrial sector.
• Quality
• RD delivered by a specialist supplier with
  appropriate skills, equipment, management
  systems, etc., adds to the organization's
  competitive advantage.
• Productivity
• Getting others to manage and deliver what they
  do best, and allowing the organization to focus
  on what it does best may improve the productivity
  of what remains in-house.
• Time to market
• Outsourcing may be a way to shorten product
  development and thus reduce the time to market,

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A linear model of Technology transfer
Technology Transfer
Licenses Start-up
Commercialization Strategy
Intellectual Property Protection
Intellectual Asset Development
Disclosure
Research
Source Louis P. Berneman, 2000
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Technology transfer
Technology Transfer

• Aim
• Management of company's proprietary knowledge
• Management of intellectual property issue
• Evaluation of the effectiveness of technology
  transfer

INPUT
OUTPUT

• Current technological capabilities inventory
  (updated)
• Patent proposal
• Periodic and project reports
• Collection of proprietary know-how(last)
• Companys patent portfolio(last)
• Licensing out proposal
• Technology exploitation action plan

• Collection of proprietary know-how(updated)
• Companys patent portfolio(updated)
• License agreement
• Proposal of new exploitation routes
• Report on the effectiveness of technology
  transfer and exploitation process
• Report on RD activity

• Document proprietary knowledge
• Protect useful intellectual properties
• Manage licensing out
• Identify additional business opportunities
• Mange technology transfer
• Review effectiveness of technology
• transfer and exploitation

ACTIVITY LIST
Source Choung, 2002 IT Technology Development
Strategy
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Technology Transfer

• 1 document proprietary knowledge
• Activity
• Collecting the companys know how and storing on
  the collection of proprietary know-how
• Input documentation
• Current technological capability
• Periodic and final project reports
• Collection of proprietary know-how(last)
• Output documentation
• Collection of proprietary know-how(updated)
• Note
• Distinction between Technological capability
  inventory (list of classified technological
  capabilities) and collection of proprietary
  know-how( data relevant to each technology
  capability and necessary for its exploitation)

1. List of subjects and critical accomplishments
2. list of key people who are the knowledge
holders 3. Key technological documentation
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Technology Transfer

• 2 Protect useful intellectual properties
• Activity
• Patent proposal
• Analysis of Patentability
• Arrange the know into patent portfolio
• Input documentation
• Patent proposal
• Periodic and final project reports
• Collection of proprietary know-how(updated)
• Companys patent portfolio
• Output
• Companys patent portfolio (updated)
• Note
• Conjunction between protect know-how and exploit
  the patent

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Technology Transfer

• 3 Manage licensing out
• Activity
• Management of licensing out arrangement
• Analysis of licensing-out proposal
• Input documentation
• Licensing-out proposal
• Collection of proprietary know-how
• Companys patent portfolio
• Output documentation
• License agreement
• Note
• Alignment of companys strategies review by the
  strategic and technology planning function

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Valuing technology assets
Technology Transfer
Value of tech to customer full cost of the
supplier of developing the tech.
What it would cost the customer to develop the
technology
Source ADL(1997)
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Technology Transfer

• Technology transfer execution
• Critical elements of successful technology
  transfer
• 1. Technology manual
• Editing and testing the resulting manual are
  essential
• 2. Face to face briefings and consultations
• Question and answer session
• 3. Coaching and counseling
• 4. Periodic technology update
• In 1999, yet2.com was founded and technology
  transfer through the use of the Internet
• Claim
• Most of technology transfer occurs within the
  same industry, as individual licensing executives
  very rarely are able to look to companies from
  different industries.
• Technology transfer occurs fundamentally in the
  same geographic region, as individuals have
  limited contacts abroad.
• Most activity occurs among companies of the same
  size, as large companies do not have an efficient
  means of accessing technologies from smaller
  developers.

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Technology Transfer
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Technology Transfer
Example form of technology transfer

• Technology Overview
• - Title, technology type(process, design,
  material, software), technology benefits
• Novelty
• Technology differentiation and uniqueness
• Development Status and Potential Applications
• Application and potential advantage
• Development status
• Intellectual Property
• Patent number, patent summary
• Provider Company Demographics
• Related competencies
• Licensing
• Type of collaboration thought (Venture funding,
  RD contract, Joint venture, license, for sale)
• Collaboration description

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Technology Transfer

• Licensing and Intellectual Property Tips
  yet2.com
• Invest in Understanding Internal Technology
  Resources
• Large and diverse conglomerates often dont
  understand what technologies they have across the
  organization
• Focus on High Margin Activities
• Concentrate RD Efforts
• Use Licensing to Transform Product Development
• companies are able to conserve resources and get
  products to market faster, leaving them free to
  concentrate on core innovations and giving them
  increased competitive advantage in an era of
  rampant technological change
• Benefit from the Innovations of Other Industries
• Be Flexible about Licensing Partnerships
• Use Internet Tools to Improve Efficiency
• Licensing policy may differ from industry to
  industry

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Technology Transfer

• Different patterns of licensing by industry
• Electronics and computer industries
• Cross-licensing is a very common way to do
  business.
• Pharmaceutical industry
• In-licensing, and places great importance on
  forming collaborative relationships with biotech
  and other types of companies as well as with
  universities.
• Chemical industry
• Combination of patent rights and know-how
• Know-how component of the license is more
  important than the patent rights.

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Technology Transfer

• 4 Identify additional opportunities
• Activity
• Identify new potential new applications of
  companys knowledge
• Evaluation of commercial value of the additional
  value
• Input documentation
• Collection of proprietary know-how
• Companys patent portfolio
• Output documentation
• Proposal of new technology exploitation routes

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Technology Transfer

• 5 Manage technology transfer
• Activity
• Collect the information to review performances of
  the current know-how relevant to the existing
  need of the customer
• RD function looks after documents transfer,
  Personnel function in charge to implement the key
  staff transfer
• Input documentation
• Collection of propriety know-how (update)
• Companys patent portfolio(update)
• Technology exploitation action plan
• Output documentation
• Staff transfer report
• Know-ho documents transfer report

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Technology Transfer

• 6 Review effectiveness of technology transfer and
  exploitation within the company and outside
• Activity
• Performance of the process of transfer and
  exploitation and benefits achieved are evaluated
  once a year by the technology planning
• Input documentation
• Collection of proprietary know-how(updated)
• Companys patent portfolio(updated)
• License agreement
• Proposal of new technology exploitation routes
• Staff transfer report
• Know-how documents transfer report
• Output documentation
• Report on effectiveness of technology transfer
  and exploitation process
• Tool
• Rd METRICS

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Technology Transfer

• Successful Online Marketing marketplace
• You have to promote technology
• theres too much on the market and too much
  competition

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Technology transfer Market
Technology Transfer

• Technology trade
• - TAM (www.tam3.net)
• - Yet2.com(www.yet2.com)
• - Tech Exchange Online (www.teonline.com)
• - NTEM (www.ntem.ti.cn)
• - APCTT(www.apctt.org)
• - BTG Inl (www.btg.co.uk)
• - PAX (www.pax.co.uk)
• - CRTT(www.crtt.demon.co.uk)
• - LES (//les-europe.org)
• - KTTC(www.kttc.or.kr)
• - IITA(www.technomart.re.kr)- English
  service is under construction

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Introduction of Korea technology transfer center
Technology Transfer
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Technology Transfer
Technology registration
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Technology Search
Technology Transfer

• Introduction
• - You can search technologies that you need with
  our two different search methods search by
  category and search by keywords. In addition to
  that, we present 20 newest technologies every
  week. If you are not able to find the needed
  technology in our DB, had better youregister the
  details of the technology under a technology
  request section then,Our specialists will answer
  you promptly.
• Search by category
• - Industrial Field of the technology will be
  required and as you go through sub-categories,
  you'll be closer to the area of your interest
• Search by Keyword
• - Application Field and Keyword will be required
  and fast and accurate results will be obtained if
  proper conjunctions are used.

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Service
Technology Transfer

• Technology transfer
• - Create new products and new businesses through
  the transfer of technology and the licensing of
  intellectual property rights.
• - Promote growth of research-intensive
  institutes and research centers by facilitating
  the industrial use of technology developed at
  public institutes.
• - Import overseas technology and export domestic
  technology. Support with problems generated from
  differences in legal systems as well as in
  culture.
• Technology appraisal
• - Reliable Technology evaluation through
  specialized assessment tools and methods
• - Establish impartial and objective technology
  transfer and business transaction processes.
• - Build KTTCs own technology assessment model
  classified by industry or technological field.

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Technology Transfer

• Technology appraisal
• - Evaluate overall capacity of a company its
  technology level, its ability to develop desired
  technology, its intangible property, its
  production system, and its managing ability.
• - Replace the collateral loan culture with the
  credit-based loan culture using assessment of
  value of technology.
• - Provide seed money to companies with promising
  technology in its early stage of development.
• - Invest in firms with promising new technology
  to help them expand their businesses.
• - Purchase technology in advance and either
  resell or promote its commercial use when
  needed.Link capital with technology for an early
  commercialization of promising technology.

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Key Concepts in International Tech. Transfers
Technology Transfer In Asia-Pacific region

• International tech transfer is not simple
• success depends upon many factors, such as
• Capabilities and international experience of
  both supplier
• and recipient of the technology
• Trust between the potential partners
• Larger firms use reputational capital in
  negotiations
• Small firms must demonstrate commitment to
  success
• Government policies and restrictions
• IP transfer also requires know-how, a source of
  competitive advantage in cross-border transfers
• Cultural and language/communicational factors
  play huge role in failure or success of the
  alliance

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Barriers to International Tech. Transfer
Technology Transfer In Asia-Pacific region

• Legal Barriers
• Tremendous cost risk of international patenting
  
• Cultural differences, language, laws,
  business/economic situation, etc.
• Little knowledge of potential partners for
  marketing
• Nationalism or economic protectionism
• Geographical distance transaction costs
  correlated to distance between the parties
• Difficulty in enforcing IP rights and contracts
  at a distance

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Technology Transfer In Asia-Pacific region
Changes in Business Environment

• International environments
• Acceleration of globalization
• Rapid development of new technologies(IT, BT, NT
  etc.)
• Rapid growing of business RD expenditure
• Rising of RD outsourcing
• Shortening time to market
• Shaping economic block in order to overcome limit
  of growth engine
• Domestic environments
• Foreign financial crisis
• Changes in the direction of economic policy
• Antitrust, unfair trade, etc.
• Changes in corporate governance
• Changes in industrial structure

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Technology Transfer In Asia-Pacific region
Changes in technology Environment

• Interdisciplinary/trans-sectoral knowledge
  production
• Physical chemistry IT computational chemistry
• Acoustics IT speech recognition
• Biotechnology computational technology
  Bioinformatics
• ITBTNT
• Complexity and platform based technological
  development
• Strategic alliance and technological cooperation
• E-RD
• Increase use of IT technology
• New patterns of Research and Development
  (bioinformatics, Linux, GRID)

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Performance of Patent in US
Technology Transfer In Asia-Pacific region
Source USPTO(455 Telecommunication)
Thailand, Vietnam, Mongolia, Maldives,
Philippines, Papua New Guinea No patent in
USTPO(455 telecommunication)
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Example of Collaboration
Technology Transfer In Asia-Pacific region

• Throughout Korea/Japan/China collaboration from
  the perspective of innovation system
• Mutual understanding through human networking and
  seeding
• Building common ground of innovation system in
  the economic block level linkage among each
  nations institutions
• Enhance interactive learning via on-line and
  off-line networking
• Close participation of policy makers,
  intermediaries, private sector policy learning
  network
• Improve national innovation system as well as
  bring competitiveness of certain sectors
• Improve private sector competitiveness

37
Development Policy perspective to Technology
Acquisition
Technology Transfer In Asia-Pacific region

• Case of four Asian countries
• (Lall(1996),
  Mike Hobday(1995))

• There is a different model for each NIE of
  industrialization
• Each NIE had different industrial objectives and
  used different interventions
• As a result, each had a different pattern of
  industrial and export growth, reliance of FDI,
  technological capability and enterprise
  structure.

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Historical Phasing of Technology Development
Technology Transfer In Asia-Pacific region

• Phase 1 Industry start-up(late 1950s and 1960s)
• Phase 2 Take-off of simple manufactured
  goods(1970s)
• Phase 3 Take-off of professional
  electronics(1980s)
• Phase 4 Toward advanced electronics and
  information technology

Mechanisms of foreign technology acquisition in
electronics

• Foreign Direct Investment(FDI)
• Joint ventures/Licensing
• Original equipment manufacture(OEM)
• Own-design and manufacture(ODM)
• Sub-contracting/Foreign and local buyers
• Information means(overseas training, hiring,
  returnees)
• Overseas acquisitions/equity investments
• Strategic partnerships for technology

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Technology policy in Developing nations
Technology Transfer In Asia-Pacific region

• Phase I Development of Infrastructure Base for
  Foreign Multinational
• Solicitation of Foreign Direct Investment
• Creation of Attractive Investment Regimes Tax
  Incentives, Labor
• Incentives, Regulatory Incentives
• Public Expenditures on IT, Energy,
  Transportation Infrastructures
• Phase II Building National Domestic Economy
  through Foreign Technology Acquisition
• Offset Policies for Market Access
• Technology Transfer and Technology Acquisition
  Strategies
• Expanded Tax Incentives
• Incentives for Use of Domestic Subcontractors and
  Suppliers
• Phase III Development of Indigenous RD and
  Commercialization Capability
• Government Funding of Research and Development
• Investment in Technology Commercialization
• Investment in Higher Education and Human Resource
  Development
• Funding of RD in Specific High Technology Sectors

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ICT Technology policy for Korea
Technology Transfer In Asia-Pacific region

• Institutional role
• Government
• technology supply, standardization, Large scale
  Rd program, Infrastructure arrangement
• Public lab
• Seed role, system implementation, technology
  transfer
• Private sector
• commercialization, capability enhancement
• Major technology policy
• Technology Development, Human resources training,
  Industrial Infrastructure
• Major RD programmes
• Development and Commercialization of TDX
  Switching Systems (82-91)
• CDMA Technology Development (89-96)
• Semiconductor technology development (86-97)
• Ticom project (87-98)
• ATM stitching system (92-01)
• Optical transmission system (93-01)
• Existing problems for developing countries
• Revolutionary approach to technology development
• Policy Dilemma Time to market and Pilot project

41
Hong Kong
Technology Transfer In Asia-Pacific region

• Free trade, no selective targeting and an
  open-door policy to FDI.
• Unique initial conditions
• - long entrepot tradition
• - established infrastructure of trade and
  finance
• - the presence of large British companies
• - influx of entrepreneurs and trained textile
  and metalworking engineers and technicians from
  mainland China
• Export-oriented light manufacturing under free
  trade
• - light labour-intensive manufacturing industry
  where learning costs were relatively low and
  predictable
• Lack of selective promotion
• - product quality improved and new consumer
  products were added
• - little industrial or technological deepening
  over time
• - Deindustrialisation as wages and land costs
  rose and relocated its manufacturing to other
  countries, mainly China
• - Very undesirable in other developing
  economies.

42
Singapore
Technology Transfer In Asia-Pacific region

• Interventionist policy combined with free trade
• Heavily relies on MNCs
• - Strong efforts to induce MNCs to establish RD
  facilities
• - Reducing the need for indigenous technological
  effort
• Intervention of the government
• - Targeting activities for promotion
• - Aggressive seeking and using FDI
• - Creating the specific skills needed
• - Setting up public enterprises to undertake
  activities, where foreign investment was
  unfeasible or undesirable
• - Heavy reliance on foreign investments
• Comparatively lowness of Technological depth of
  the affiliates
• - This technological strategy is feasible only
  for relatively small and specialised economies.

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Korea
Technology Transfer In Asia-Pacific region

• Much further in developing advanced and heavy
  industry than Taiwan.
• - More detailed and pervasive intervention
• Deliberate creation of large private
  conglomerates
• - Very complex technologies(without a heavy
  reliance of FDI)- undertake the cost and risk of
  absorbing
• - Develop tech. by their own RD
• - Set up world scale  facilities
• - Create their own brand names and distribution
  networks.
• Selective and functional support by building a
  massive technology infrastructure and creating
  general and technical skills.

44
Taiwan
Technology Transfer In Asia-Pacific region

• Import protection, directed credit selectivity on
  FDI, support for indigenous skill and technology
  development and strong export promotion.
• The developing world's most advanced system of
  technology support for SMEs.
• No promotion of giant private conglomerates, no
  attempting the intense drive into heavy industry
  
• The government played a very active role in
  helping SMEs to locate, purchase, diffuse and
  adapt new foreign technologies.

45
Industrial policy objectives of NIEs (I)
Technology Transfer In Asia-Pacific region
46
Industrial policy objectives of NIEs (II)
Technology Transfer In Asia-Pacific region

• More interventionist strategies on trade and
  domestic resource allocation.

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Conclusion
Conclusions

• Policy perspective
• Different national tech. Transfer strategies are
  required for the characteristics and innovation
  system of each product
• When a developing nation is setting the national
  technology strategy, it must fully utilize
  accumulated resources and technological
  capabilities
• New approach perspective
• Need for collaboration among countries to
  overcome the Barriers to International Tech.
  Transfer
• Need for detail model for technology transfer in
  A-P region
• Need for further study about technology and
  business environments of each country
• Activating Techno-Mart Tech. Transfer
  conference

48
Future Plan

• Year 2004
• IT Knowledge creation opportunities by joint
  collaboration among AP countries
• Recommend detail model for technology transfer
  within the Asia-Pacific region