Management of Technology

Technology Transfer:

DRDO from its Research, design and development operations has developed Intellectual
Property (IP), Proprietary information, Patents, and Copyrights. Matured manufacturing-ready
technologies are transferred to Indian Industries for their development. DRDO supplies the
necessary 'know-how' in the context of Technology development Documents and help for
interactivity. Consequently, DRDO makes a major contribution to enhancing Indian Defense
Industry's potential through technology transfer.

Technology Transfer Objectives:

The objective of the Technology Transfer Approach is to distribute techniques developed by

DRDO via a mechanism that guarantees smooth technological knowledge transfer to industries
to enhance the development and competence of the military production division to achieve total
autonomy.

Business Arrangements:

Business Agreements includes projects, initiatives, Engagement of tasks, contractual

relationships or any other actions which require continuous or intermittent output by one or both
partners. Before Business Arrangements the Planning and Analysis of the Major Factors which
affects the arrangements area are as follows

1. Financial sector
2. Legal Sector
3. Market Sector

Financial sector: DRDO divided its Business Development Associates into three types:
Development and production Partner, Category-A, Category-B. The DRDO charges the
technology transfer fees to the industries on the basis of the categorization.

● DRDO's Engineering and Production Partner has been exempt from all costs, fees and
Royalties because they are involved in the programme and technology growth.
 ● Charges for Category-A Sector:

1. Development Approval Pay of Projects : 05%

2. Total cost incurred for the project : 05%
3. Research budget of the project : 05%
4. Royalty fees : 02%

● Charges for Category-B Sector:

1. The fees is on the basis of 3 highest values Best price across Bids, Estimates on
market analysis, Established benchmark value.
2. Total cost incurred for the project : 10%
3. Royalty Fees : 10%

Legal Sector : Multiple legal Agreements shall be exchanged during the Technology Transfer
procedure. The legal agreements are stated below:

1. Agreement on Privacy and Non-divulgence

2. Agreement on material exchange
3. Arrangement of Technology transition Licensing

Market factors:

The industry which is buying the technology is most concerned about market factors because of
competitiveness in the consumer market, present situation demand for the technology, Autonomy
and also about the Investment cost and Risk factors.
Technology Transfer Effectiveness:

Effectiveness of technology transfer is a successful expression in achieving a desired result.

Figure 01 : Representation of Technology transfer effectiveness model

Effectiveness Key Question Fundamental Impact on

Criteria theory effectiveness

Technology Which technology Analyze the If the technology

and how Explicit is technology based on opted is explicit then
the technology? the technical focus on the Output
specification before by using the
selection. technology.
If the technology is
not explicit then the
outcome will be
Inappropriate.
 Market Impact and Does the transitioned Sustainable and The technology
Economic technologies have stable technologies outcome is suitable
Development any effect on the must be selected for the current
industry revenue and situation and
productivity? marketing the
products will help in
economic growth of
the company.

Organisation Cultural Whether the Training programmes The adaptation of the

Differences technology will be to be offered to the new technology by
adapted by the employee if the substituting the old
employees? technology is will impact either
transferred from way, so analyzing
foreign countries. and Implementing the
stable technology will
overcome the
differences.

Timing Does the technology Competitiveness in Durability of the

is suitable for this the consumer market, technology is
present situation? durability of the uncertain, if some
How long will it technology to be new innovation
sustain? inspected. emerges from the
rivalry it is a threat,
so continuous R&D is
required for stable
organization.

Political and people Does the technology Determining the Political barriers are
value have any barriers? political influence on here concerned with
the project and how the government
helpful the project is regulations. growth
to the people. and customer
satisfaction should be
the main objective of
the industry.
Technology Transfer Mechanisms:

❏ Licensing​: In DRDO, the Technology Nomination form is forwarded by the laboratory

under the recommendation of Director General of DRDO. Then the recommendation is
sent to the Directorate of Industry and technology management for the Competent
Financial Authority approval, after its approval then Licensing Agreement of transfer
technology takes place and handing over the technology to the industry and license
certificate is granted.

❏ Joint ventures: ​A Joint Venture is a collaborative agreement where two or more

organizations decide to merge their resources to achieve a particular mission.

The Brahmos is the best example for the Joint venture of DRDO and Russia military
industrial consortium called NPO Mashinostroyenia.

Brahmos was established by the capital of $250 million, where DRDO shares 50.5% of
the capital and NPOM shares 49.5%. The technologies built by this joint venture are
follows
➢ Ship Based Weapon complex system
➢ Land Based Weapon complex system
➢ Air Launch weapon system
➢ Submarine launch system

❏ Technical Assistance​:

The laboratory responsible will provide free hand holding assistance for the Industries for
which they have Transfered of technologies

Sl. No. Project Cost Time period

01 50 Lakh to 5 Crore 6 Weeks

02 Above 5 Crore 12 Weeks

In Joint Venture Sector, DRDO gets assistance from russian NOPM, and that assistance are
stated below:

● Engineering and growth of ballistic and supersonic cruise missile systems

● Development of High quality Farm machinery
● Information technology.

❏ Marketing (Exporting military products): ​DRDO exports various of its military goods
and equipment to its friendly countries for trade.

The successful military equipment exports are:

1. 11 rapid assault crafts and 2 Offshore Patrol Vessels to Mauritius.

2. Damage control simulator for myanmar.
3. 2 offshore patrol vessels to Sri lanka.

Technology Transfer Cycle:

 ❖ Research and development takes place in the organisation to develop a sustainable,
reliable, stable technology
❖ After various error and trial methods the new technology will be invented.
❖ The new technology which has been invented will be analyzed and tested in various
unforeseen circumstances to check its efficiency and sustainability
❖ Intellectual property protection will be taken by making Patents and Copyrights to protect
their technology.
❖ Marketing the products either by direct sales or distribution or franchise takes place, in
DRDO the both direct sales takes place and distribution sales take place.
❖ Providing a license agreement certificate to the distribution or to Development partner by
trading the technology to their industry by taking revenue or fees or royalty.
❖ Products are made using the existing technology until the further new technology arises
and providing services to the sold products.
❖ Income of the industry is based on the product selling and revenue generated by royalties
and fees of technology transfer.

Include this in Attachments:

Transfer of Emerging technologies to Market:

The New technologies are the threat to the existing technologies and the existing old
technologies are a threat to the industry itself, because the industry sets back in the new
development. Continuous research and development should be conducted for the economic and
technological growth of the industry.

Hence the four Product-market strategy should be adapted to the industry, where substitution of
the old technology takes place new creation and over a period of time that old technology gets
diffused and the present technology will be most used technology and gets expanded and then a
newer technology arises to overcome the expanded technology this loops will be continuous and
helps in the research and development of newest updated technology.