DBA 1734 TECHNOLOGY TRANSFER PART - A 1. Define Technology upgradation.

The technology up gradation project was initiated with the assistance of World Banks FSDIP project and has continued its pace under the Technical Assistance for Banking Sector (TABS) program, again sponsored by the World Bank. The project has already successfully installed the base infrastructure at Karachi Head Office and initial deployment of the banking package (Globus); ERP package (Oracle Financials) and data warehouse has also been implemented to a considerable level. The major components of the automation project are: Hardware system Globus (Banking Solution) Enterprise Resource Planning (ERP) Data Warehouse Networking Trainings

2. What is Technology Process Mapping?

A process map is a tool to visually illustrate how the work flows. It is also a communication tool, a business planning tool and a tool to help manage the organization. Key elements include: Inputs Outputs Activity steps Decision points Functions

The lines and symbols on a process map help us to record concise sentences for every step in the process that tells the reader: What is happening? Where it is happening. When it is happening. Who is doing it? How inputs and outputs are handled and distributed.

3. What are the conflicts arises in Technology Interests?

Conflicts of interest are a predictable and expected result of proper research and commercialization efforts at the University. Once a technology has been licensed, a potential revenue stream is created. That revenue can be influenced, positively or negatively, by the results of continuing research on that technology. When inventors, company founders, stockholders or others who stand to benefit from the technologys commercial success are also involved in University research on the technology, a conflict of interest exists. The Universitys policies and procedures on conflict of interest may be viewed at the Research Compliance Program website.

Implications for Research

Most conflicts of interest can be managed by a combination of disclosure, oversight, and attention to the key principles of transparency, separation and independence.

4. Define Technology broker.

The idea of Technology brokering is to span multiple, otherwise disconnected industries, to see how existing technologies could be used to create breakthrough innovations in other markets. Technology brokering requires companies to be strong in two areas.[1] As Andrew Hargadon, technology brokerings founder, summarized: Firstly, the company must have the ability to bridge distant communities, usually when a company can move easily across a range of different markets they have a better view of how technologies can be used in new ways. Secondly, technology brokering involves creating new markets and industries based around innovative combinations of existing technology. These two strengths are difficult to have simultaneously because the strong ties the companies have with customers and supplies in one industry prevent the company from moving easily into other markets and experimenting with new ideas .[2] Yet, when a company is able to combine these two strengths it can result in being the first to experience technological advances.

5. What are the common goals on Innovation?

Programs of organizational innovation are typically tightly linked to organizational goals and objectives, to the business plan, and to market competitive positioning. One driver for innovation programs in corporations is to achieve growth objectives. As Davila et al. (2006) notes, "Companies cannot grow through cost reduction and reengineering alone... Innovation is the key element in providing aggressive top-line growth, and for increasing bottom-line results." [16]

One survey across a large number of manufacturing and services organizations found, ranked in decreasing order of popularity, that systematic programs of organizational innovation are most frequently driven by: Improved quality, Creation of new markets, Extension of the product, range, Reduced labor costs, Improved production processes, Reduced materials, Reduced environmental damage, Replacement of products/services, Reduced energy consumption, Conformance to regulations

6. Distinguish between Technology Incubators and Research & Technology parks.

Business incubators are programs designed to accelerate the successful development of entrepreneurial companies through an array of business support resources and services, developed and orchestrated by incubator management and offered both in the incubator and through its network of contacts. Incubators vary in the way they deliver their services, in their organizational structure, and in the types of clients they serve. Successful completion of a business incubation program increases the likelihood that a start-up company will stay in business for the long term: older studies found 87% of incubator graduates stayed in business,[1] in contrast to 44% of all firms.[2]

While each country or municipality may have different reasons for creating technology parks, generally the primary goal of a technology park arrangement is to increase the number of "entrepreneurial, knowledge-based small and medium-sized enterprises" (or SMEs) in an economy.6 SME's have been described as "the backbone of the private sector as they help diversify the economy." 7 Developing countries with no local expertise in technology may use technology parks to attract foreign direct investment to create jobs and increase tax revenues.

7. What do you mean by royalties?

Royalties (sometimes, running royalties, or private sector taxes) are usage-based payments made by one party (the "licensee") to another (the "licensor") for the right to ongoing use of an asset, sometimes an intellectual property (IP). Royalties are typically agreed upon as a percentage of gross or net revenues derived from the use of an asset or a fixed price per unit sold of an item of such, but there are also other modes and metrics of compensation. A royalty interest is the right to collect a stream of future royalty payments, often used in the oil industry and music industry to describe a percentage ownership of future production or revenues from a given leasehold, which may be divested from the original owner of the asset.

8. What is the role of periodicals in technology transfer?

Simply put, technology transfer is the process by which a technology, expertise, know-how or facilities developed by one individual, enterprise or organization is transferred to another individual, enterprise or organization. Effective technology transfer results in commercialization of a new product or service or in the improvement of an existing product or process.

The creation or absorption of new technology has become a vital component for companies to improve or maintain their competitive position in the market place. Companies operating in sectors where competition takes place on the basis of price alone, such as the extraction or commercialization of raw materials, may rely on new technologies to improve their efficiency in the extraction of raw materials by improving their productive processes or acquiring new machinery and equipment. They may also use new technology to better commercialize their products or to improve their management structure, control and communication.

9. What do you mean by finance syndication?

A syndicated loan is one that is provided by a group of lenders and is structured, arranged, and administered by one or several commercial banks or investment banks known as arrangers.

The syndicated loan market is the dominant way for corporations in the U.S. and Europe to tap banks and other institutional financial capital providers for loans. The U.S. market originated with the large leveraged buyout loans of the mid-1980s,[1] and Europe's market blossomed with the launch of the euro in 1999.

Globally, there are three types of underwriting for syndications: an underwritten deal, bestefforts syndication, and a club deal. The European leveraged syndicated loan market almost exclusively consists of underwritten deals, whereas the U.S. market contains mostly best-efforts.

Underwritten deal Best-efforts syndication Club deal

10. What is an IP Audit? An IP Audit is defined as a systematic review of the IP assets owned, used or acquired by a business. Its purpose is to uncover under-utilized IP assets, to identify any threats to a companys bottom line, and to enable business planners to devise informed strategies that will maintain and improve the companys market position. In many cases SMEs do not have the resources to conduct a full audit of all its IP and will find it difficult to put a value to each of the components making up an IP portfolio. Putting aside these difficulties, and at the risk of reducing the exercise to the too-hard basket it is important for every business to document and value what is, in many cases, its most important intangible assets. The above example merely illustrates the hidden assets found in any company (in this case an SME) and how an IP audit can facilitate the identification of importance, in terms of contribution to companys competitiveness and bottom line, different IP assets it own or use. PART - B 1. Explain the procedure for Technology opportunities, sale up, decision making and choice of technology for the Innovative products. TECHNOLOGY OPPORTUNITIES

An essential component of managing available technology, is recognizing the role that technology plays in the competitive success of a firm, and acting to ensure that the technology decisions and policies contribute to the firms competitive advantage. Technology advances have major effects on each of these entities and are in turn, influenced by them. Management of technology involves developing an understanding of these relationships and dealing with them in a rational and effective manner. Therefore, issues falling under the scope of management of technology can be explored in their relation to one of the following five categories: Methods and tools for effective management of resources. The business environment and the ability to manage the interface between the organization and the external environment. The structure and management of organizations. Management of R&D and engineering projects. Management of human resources under conditions of rapid technological and social change. CHOICE OF TECHNOLOGY Technology choice has important implications for growth and productivity in industry. The use of technology is always tied to an objective. Because various types of technologies can be used to achieve an organizations objectives, the issue of choice arises. The concept of technology choice assumes access to information on alternate technologies and the ability to evaluate these effectively. Moustafa (1990) asserted that effective choice is based on preselected criteria for a technologys meeting specified needs. Further, it depends on the ability to identify and recognize opportunities in different technologies. The expected outcome is that the firm will select the most suitable or appropriate or alternate technology (AT) in its circumstances. Implementing technology programmes Integrate technology into the firms strategic objectives Taking a proactive stance in introducing new technologies with greater emphasis on cycle time Increasing the productivity and performance of the firms technical community Understanding the interdisciplinary needs in project management Analyzing the resources and infrastructure to effectively select the technical scope of the work effort 2. Briefly explain the technology flow channel and Technology Transfer Modes. Channels of technology flow Technology is intangible; it flows easily across boundaries of countries, industries departments or individuals, provided that the channels of flow are established. There are three types of channels that allow the flow of technology. 1. General channels: The technology transfer is done unintentionally and may proceed without the continued involvement of the source. Information is made available the public domain with limited or no restrictions on its use. This information is harnessed by users and applied to their

purposes. Channels of this type of transfer include education, training, publications, conferences, study missions, and exchange of visits. 2. Reverse-engineering channels: Other channels in which the transfer occurs with no active contribution from the source include reverse engineering and emulation. Here a host, or a traditional receiver of a technology, is capable of breaking the code of a technology and developing the capability to duplicate it in some fashion. This is feasible provided that the host has the knowledge to do this and there is no legal violation of intellectual or property rights. For example, a product that is put on the market by company A can be purchased by company B, reverse-engineered, and introduced to the market as a competitor to company As product, as illustrated by the case in the accompanying box. 3. Planned channels: The technology transfer is done intentionally, the product according to a planned process and with the consent of the technology owner. There are several types of agreements that are used to affect planned transfers. They permit access to, and use of, a technological know-how: a) Licensing b) Franchise c) Joint venture d) Turnkey project e) Foreign direct investment (FDI) f) Technical consortium and joint R&D project TECHNOLOGY TRANSFER MODES Technology transfer modes have been categorized basically as being passive or active, which refers to the transferors role in the application of technology to the solution of the users problem. If the transferring mechanism presents the technology to the potential user without assisting the user in its application, namely by a report or oral presentation, then the technology transfer mode is said to be passive. This is actually knowledge transfer. If the transferring activity assists the potential user in the application of technology, then the technology transfer mode is said to be active. In this process, the transferring activity goes beyond mere interpretation of the transmitted data and advises the potential user on how to apply the technology, or demonstrates the applicability of the technology to the perceived use. There could however be an intermediate also, which may be called semi-active mode in which transferring activity is in between the activity is in between the active and passive modes. The three different types of technology transfer modes are: The Passive Mode The Semi-active Mode The Active Mode

3. What are the various developments take place in Technology Partnering?

TECHNOLOGY PARTNERING
In-house development of technologies are developed and demonstrated on its own. Partnerships with intermediaries commitments relate to the transfer of environmentally sound technologies and the know-how necessary to mitigate and facilitate adequate adaptation to climate change. Sponsored development technologies are developed and demonstrated at the request of a potential user organization/company wholly funded by the client organization. Joint development technologies are developed jointly with another partner with both the partners contributing substantially to each facet of the overall technology development. Collaborative development technology is developed in conjunction with each partner exclusively developing a component of the whole technology International networks of technology share skills, knowledge, technologies, methods of manufacturing, samples of manufacturing and facilities among industries, universities, governments and other institutions to ensure that scientific and technological developments are accessible to a wider range of users IN-HOUSE DEVELOPMENT Small & medium enterprises have to cope up and survive in the hi-tech global market can adopt the following strategies to develop and in transfer of technologies In-house development: These technologies are developed and demonstrated on its own. One or more of these factors may be more important than the others in each of the five phases, and for each type of technology under consideration. For example, in the acquisition phase of the Transfer Cycle, a developing-country enterprise, which has a limited foreign exchange to buy sophisticated equipment, will consider the economic factor to be relatively more important. Accordingly, the company may opt for self-generation rather than transfer of technology, by designing and building machinery of its own Barriers Barriers may generally be defined as factors that inhibit the technology transfer process. Examples of barriers are abundant in the literature.However, the following is a short list of barriers relevant to the transfer of ESTs: a) Institutional: lack of legal and regulatory frameworks, limited institutional capacity, and excessive bureaucratic procedures;

b) Political: instability, interventions in domestic markets (for example, subsidies), corruption and lack of civil society; c) Technological: lack of infrastructure, lack of technical standards and institutions for supporting the standards, low technical capabilities of firms and lack of a technology knowledge base; d) Economic: instability, inflation, poor macroeconomic conditions and disturbed and /or nontransparent markets; e) Information: lack of technical and financial information and of a demonstrated track record for many ESTs; f) Financial: lack of investment capital and financing instruments; g) Cultural: consumer preferences and social biases; h) General: intellectual property protection, and unclear arbitration procedures 4. Describe the procedure followed in Absorption of new Technologies, Process and Relocation issues. Technology is intangible and it flows easily across boundaries of countries, industries departments or individuals, provided that the channels of flow are established The Absorption process gives the methodology by which technology is absorbed. Relocation issues give the salient difficulties in transferring technology.

ABSORPTION PROCESS Technology absorption capabilities of recipient enterprise The absorptive capabilities of the recipient enterprise depend upon its resources and capabilities (embodied in technical and managerial skills as well as financial strength) and upon the transfer capabilities of the supplier enterprise. The following are some of the problems encountered by small-to-medium enterprises in technology absorption. Service facilities: Material testing, heat treatment, instrument calibration, engineering standards and quality control procedures. Manufacturing : Material standards and specifications, manufacturing processing procedures, formulas on alloys and compounds, fabrication and use of fixtures, jigs, dies and tools, welding techniques, casting and other metallurgical processes and material substitutes.

Equipment: Special equipment designs (heat exchangers, pressure vessels, bearings heating elements) and standardization of major machine components (gear boxes, machine tools), die casting etc. RELOCATION ISSUES Technology analysis may be viewed as a skyway theory of technology. Just as a skyway is a passageway linking various buildings, allowing easy access to the main areas without attempting to cover every floor, so technology analysis allows easy access to the essential feature of all technologies without attempting to grasp every detail. Traditional Tools Traditional strategic managements analytical tools can address technological issues with some utility. However, in varying degrees they suffer from (1) a lack of differentiation of technological change from other types of change; (2) little insight into the dynamic processes involved in technological change; (3) a dependence on (frequently a technical) analysts knowledge, expertise, and understanding; and (4) some question about the credibility of underlying concepts. They lack the focus and emphasis required for contemporary strategic management analysis. 5. Explain Joint and Collaborative Development.

JOINT DEVELOPMENT Joint development: In this case, technologies are developed by ARCI jointly with another partner with both the partners contributing substantially to each facet of the overall technology development. Here, project is partially funded by the client and the first priority for technology transfer is given to this client. In a multinational company, external factors, including the political and cultural factors, sometimes may become more dominant in relative importance than the economic and technical factors. For example, prior to the 1990s, some Japanese multinational companies were wise to offer their technology and know-how in India without demanding a 51 percent share, but rather settling for 45 percent, because of an understanding and appreciation for the political and cultural requirements prevalent and imposed by the Indian government. Thus, they gained entry to some vital markets well before others in the West did COLLABORATIVE DEVELOPMENT Collaborative development: Here, technology is developed in conjunction with each partner exclusively developing a component of the whole technology. Here again, first priority for technology transfer is given to collaborator.

The idea for an invention may be developed on paper or on a computer, by writing or drawing, by trial and error, by making models, by experimenting, by testing and/or by making the invention in its whole form. As the dialogue between Picasso and Braque brought about Cubism, collaboration has spawned many inventions. Brainstorming can spark new ideas. Collaborative creative processes are frequently used by designers, architects and scientists. Co-inventors are frequently named on patents. Now it is easier than ever for people in different locations to collaborate. 6. Briefly explain the various issues in IPR.

IP RELATED ISSUES : RIGHTS - LITIGATIONS ROYALTY AUDITS AUCTIONS Intellectual property (IP) is a legal field that refers to creations of the mind such as musical, literary, and artistic works; inventions; and symbols, names, images, and designs used in commerce, including copyrights, trademarks, patents, and related rights. Under intellectual property law, the holder of one of these abstract properties has certain exclusive rights to the creative work, commercial symbol, or invention by which it is covered. Intellectual property rights are a bundle of exclusive rights over creations of the mind, both artistic and commercial. The former is covered by copyright laws, which protect creative works such as books, movies, music, paintings, photographs, and software and gives the copyright holder exclusive right to control reproduction or adaptation of such works for a certain period of time. The second category is collectively known as industrial properties, as they are typically created and used for industrial or commercial purposes. A patent may be granted for a new, useful, and non-obvious invention, and gives the patent holder a right to prevent others from practicing the invention without a license from the inventor for a certain period of time. A trademark is a distinctive sign which is used to prevent confusion among products in the marketplace. An industrial design right protects the form of appearance, style or design of an industrial object from infringement. A trade secret is non-public information concerning the commercial practices or proprietary knowledge of a business. Public disclosure of trade secrets may sometimes be illegal. Purpose Intellectual property rights give creators exclusive rights to their creations, thereby providing an incentive for the author or inventor to develop and share the information rather than keep it secret. The legal protections granted by IP laws are credited with significant contributions toward economic growth. Economists estimate that two-thirds of the value of large businesses in the U.S. can be traced to intangible assets. Likewise, industries which rely on IP protections are estimated to produce 72 percent more value per added employee than non-IP industries. Economics of intellectual property

Intellectual property rights are considered by economists to be a form of temporary monopoly enforced by the state (or enforced using the legal mechanisms for redress supported by the state). Intellectual property rights are usually limited to non-rival goods, that is, goods which can be used or enjoyed by many people simultaneously - the use by one person does not exclude use by another. This is compared to rival goods, such as clothing, which may only be used by one person at a time. For example, any number of people may make use of a mathematical formula simultaneously. Some objections to the term intellectual property are based on the argument that property can only properly be applied to rival goods (or that one cannot own property of this sort). 7. Explain the technology transfer modes in detail. Illustrate with suitable diagrams.

TECHNOLOGY TRANSFER MODES Technology transfer modes have been categorized basically as being passive or active, which refers to the transferors role in the application of technology to the solution of the users problem. If the transferring mechanism presents the technology to the potential user without assisting the user in its application, namely by a report or oral presentation, then the technology transfer mode is said to be passive. This is actually knowledge transfer. If the transferring activity assists the potential user in the application of technology, then the technology transfer mode is said to be active. In this process, the transferring activity goes beyond mere interpretation of the transmitted data and advises the potential user on how to apply the technology, or demonstrates the applicability of the technology to the perceived use. There could however be an intermediate also, which may be called semi-active mode in which transferring activity is in between the activity is in between the active and passive modes. The three different types of technology transfer modes are: The Passive Mode The Semi-active Mode The Active Mode

The Passive Mode The passive mode, also called dissemination mode, is illustrated in Figure 2.6. The most familiar and widely used form of passive technology transfer is the published literature. There is no direct communication or assistance from the originator of the technology to the producer of finished consumer item. Yet thousands of products are made and consumed from this form of knowledge transfer. Similar forms of passive technology transfer are self-teaching manuals such as television repair manuals and how-to-do-it guide& for home repairs. The Semi-active Mode In the semi-active mode of [technology transfer the role of technology transfer agent (in addition to self-education or self-retrieval of elements of technology transfer) is somewhat limited. This is illustrated in Figure 2.7. The technology transfer agent (consultant or technology expert) screens available pertinent information for product development. Here the role of transfer agent is only that of an interpreter or communicator. He will not actively participate in the application of the technology. The Active Mode The active mode technology transfer carries the process through to an actual demonstration as shown in Figure 2.8. The figure demonstrates various steps involved in the construction of the model or a product from procurement of material to fabrication and assembly. In this mode the

technology transfer agent or consultant will be fully involved and acts as a bridge in technology transfer from technology source to entrepreneur or implementing agency. 8. Describe the various factors underlying licensor royalty negotiations in detail. Factors Affecting Royalty Rates In any negotiation for technology transfer, both parties will arrive at their reservation price by some assessment of the costs and benefits they both derive from trade, so that the financial benefits are acceptable to each side. This determines the absolute range over which the price can be negotiated. The process of finalizing a specific price depends on the bargaining strength of the two parties, as well as their negotiating skills and general attitude towards risk and uncertainty. These factors will depend on the nature of the intellectual property to be exchanged. Tables 5-.1 and 5.2 present the key factors affecting the alternative pricing of intellectual property, first from the point of view of the licensor and second, from that of the licensee. From Tables 5.1 and 5.2 it is apparent that various factors on the cost and benefit side of the equation can affect the pricing of a license and fixing royalty rates. At the outset, the royalty level will be based on an assessment of the respective valuations of both licensor and licensee of these factions. However, that merely sets a maximum and a minimum royalty rate that both would find acceptable. Once it has been established that there is scope for trade, the rest of the pricing decision revolves around the risk preference and bargaining power of the two parties. Figure 5.1 illustrates this bargaining range. The essence of this table is again to emphasize the existent of an overlapping range within which other factors play an important role.

9. How is product classification carried out for financial assistance?

ARRANGING FINANCIAL ASSISTANCE:

In finance, private equity is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange. There are a wide array of types and styles of private equity and the term private equity has different connotations in different countries Types of Private Equity Private equity investments can be divided into the following categories: Leveraged buyout, LBO or Buyout: refers to a strategy of making equity investments as part of a transaction in which a company, business unit or business assets is acquired from the current shareholders typically with the use of financial leverage. The companies involved in these transactions are typically more mature and generate operating cash flows. Venture capital: a broad subcategory of private equity that refers to equity investments made, typically in less mature companies, for the launch, early development, or expansion of a

business. Venture Capital is often sub-divided by the stage of development of the company ranging from early stage capital used for the launch of start-up companies to late stage and growth capital that is often used to fund expansion of existing business that are generating revenue but may not yet be profitable or generating cash flow to fund future growth.[2] Growth capital: refers to equity investments, most often minority investments, in more mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a major acquisition without a change of control of the business. Other Strategies Other strategies that can be considered private equity or a close adjacent market include: Distressed or Special situations: can refer to investments in equity or debt securities of a distressed company, or a company where value can be unlocked as a result of a one-time opportunity (e.g., a change in government regulations or market dislocation). These categories can refer to a number of strategies, some of which straddle the definition of private equity. Mezzanine capital: refers to subordinated debt or preferred equity securities that often represents the most junior portion of a companys capital structure that is senior to the companys common equity. Real Estate: in the context of private equity this will typically refer to the riskier end of the investment spectrum including value added and opportunity funds where the investments often more closely resemble leveraged buyouts than traditional real estate investments. Certain investors in private equity consider real estate to be a separate asset class. 10. Enumerate the effect of culture stock in technology transfer.

CULTURE SHOCK The technology transfer step results in the transfer of a technology from its development to product development and manufacturing. It can be considered as part of a component or module in a product or a product itself for derived demand, or it may be used to support or implement a process. There are two major concerns in technology transfer viewed in two dimensions: technology and people. The first dimension is the problem of transferring information about physical phenomena, equipment, analytical and manipulative techniques, terminology, etc. associated with the technology. The transferal of information can introduce ambiguities in specifications, misinterpretations of meaning, and lack of on the- job training to understand the technology and its interdependencies and architecture. The second dimension concerns the feelings and attitudes in both organizations [of] R&D and product development engineering [regarding] the two sets of people with different skills, values, and priorities to become successful in passing the baton from one to the other. This is often a problem in management style and practice. Funding is needed in the technology transfer process to support the transfer of critical technology for inclusion in a product or process. For example, there is an important property of technological innovations for full-scale production settings that remain to be considered and that is the impact of learning effects on unit production costs and pricing of an innovative product.

The Payoff The payoff of a timely technology can make a firm gain a market edge by lowering price, even with a strategy that places it below production cost. The expectation is that increased sales would ensure future cost reductions from increased volume of output due to increased sales. Technology analysis: a foundation for technological expertise Technology analysis, a new field of inquiry seeking is a comprehensive approach to technology. MOT focuses on three levels within the organisation: Individual products and processes, i.e., management concerned with issues at the nuts-andbolts level Functional areas (e.g., operations) and corporation wide concerns (e.g., quality and productivity) Strategy, i.e., selecting a corporate destiny and guiding the corporation through a turbulent technological landscape

Six basic tools cover the essence of technology analysis: A standard format for viewing and describing individual technologies A classification of technologies A table of technological interactions A cascade of trends describing technological change A chart of technological breakthrough zones A profile of social preferences with respect to technology