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An introduction to New

Product Development (NPD)

New products Development:
Open Innovation and
Technology Transfer

New Product Development. 7. 2. 4.Open Innovation and Technology Transfer Learning Objectives 1. 3. 6. 5. Recognize the importance of the concept of technology/knowledge transfer with respect to innovation management Provide a summary of the process of technology/knowledge transfer Examine the various models of technology transfer Assess the importance of internal organization factors and how they affect inward technology transfer Explain why a ‘receptive’ environment is necessary for technology transfer Identify the different barriers to technology transfer Recognize how tacit knowledge links technology transfer and innovation Module Code and Module Title Title of Slides .

1998:93) Module Code and Module Title Title of Slides .Background Overview • Paradigm shift from labor and capital intensive industries to knowledge and technology • Internal development too uncertain. too expensive and too slow for the rapid technological changes in the market • ‘Corporations trade in technology in world markets just as they do in other goods and services’ (DFI International.

The Economic Perspective of Technology Transfer Can be transferred to Existing R&D projects and developed technology which has already been paid for Module Code and Module Title Industry and private enterprise Title of Slides .

Open Innovation • Trend of shifting away from closed systems to new mode of open systems involving a range of players distributed up and down the supply chain • Strong linkage within the innovation process between the external environment of the firm and internal environment Module Code and Module Title Title of Slides .

The activity principally involves the increased utilization of the existing science/technology base in new areas of application as opposed to its expansion by means of research and development” (Langrish et al.. 1982) Module Code and Module Title Title of Slides . It is the process by which technology developed from one purpose is employed either in a different application or by a new user.Technology Transfer “Technology transfer is the application of technology to a new use or user.

skills and expertise • The application of these knowledge then leads to actions and skills Module Code and Module Title Title of Slides . know-how.Information Transfer and Knowledge Transfer • Information is central to the operation of firms • Stimulus for knowledge.

patentexplorer.g.Models of Technology Transfer Licensing – Involves the technology owner receiving a license fee in return for access to the technology Science Park Model – academic scientists will have the opportunity to take laboratory ideas and develop them into real product e.g. www.com Module Code and Module Title Title of Slides . Silicon valley Intermediary Agency Model – act as the intermediary between companies seeking and companies offering technology Directory Model – The produced directories of technology available from the university’s own research laboratories e.

advise and useful contacts to get the research project to a flying start Module Code and Module Title Title of Slides .Models of Technology Transfer Knowledge Transfer Partnership Model – “teaching company scheme” studies part time for 2 days a week and 3 days working on the project” Ferret Model – qualified scientists and engineers who would ferret around for interesting defense technology that could have wider commercial opportunities Hiring Skilled Employees – Hiring people with the necessary skills and knowledge Research Clubs – Funded program which tries to bring companies together with common interest in particular research area Consultancy – Consultants are able to offer help.

Limitations and Barriers to Technology Transfer • The difficulty of applying other people’s technology and the need for this technology to be in such a form that organization can reap some benefits NIH Syndrome • Not Invented Here(NIH) syndrome • Tendency for project group of stable position to believe that it possesses the monopoly of knowledge in its field Module Code and Module Title Title of Slides .

Internal Organizational Factors and Inward Technology Transfer Types of companies • Innovators: The first company to adopt a new idea • Initiators: The firms that adopted the idea soon after the innovators • Fabians: The firms who adopted the idea only after its utility was widely acknowledged in the industry • Drones: The last firms to adopt new ideas Module Code and Module Title Title of Slides .

to license and to enter joint ventures • Effective internal communication and coordination mechanism • • • • Module Code and Module Title Title of Slides .Internal Organizational Factors and Inward Technology Transfer Factors leading to technology transfer High quality of incoming communications A readiness to look outside the firm A willingness to share knowledge A willingness to take on new knowledge.

Internal Organizational Factors and Inward Technology Transfer Factors leading to technology transfer An awareness of costs and profits in R&D departments Identification of the outcomes of investment decisions Good quality intermediate management High status of science and technology on the board of directors • High quality chief executives • High rate of expansion • • • • Module Code and Module Title Title of Slides .

Conceptual Framework of Technology Transfer Activity Process Awareness Describes the processes by which an organization scans for an discovers what information on technology is available Association Describes the processes by which an organization recognizes the value of technology(ideas) for the organization Assimilation Describes the processes by which the organization communicates these ideas within the organization and creates genuine business opportunities Application Describes the processes by which the organization applies this technology for competitive advantage Module Code and Module Title Title of Slides .

Identifying External Technology The Importance of Scanning and Networking • Scanning and networking as an informal and unassigned activity • Key characteristic of technically progressive firms is high quality of their incoming information • For the purpose of maintaining order and knowledge base • Each organization research activity represents a fraction of the worlds total scientific and technological activity • Important to ensure they are aware of technology around Module Code and Module Title Title of Slides .

Managing the Inward Transfer of Technology • The final stage of application of the business opportunity for competitive advantage • Organization brings about commercial benefits from the launch of a new product. improved product or manufacturing process Module Code and Module Title Title of Slides .

Open innovation and technology transfer Acquisition of technology from outside Level of Learning Individual Continual flow of tacit and explicit knowledge Group Organization Module Code and Module Title Title of Slides .Organization Context.

Explain how a firm’s internal activities affect its ability to acquire external technology Module Code and Module Title Title of Slides . Explain the importance of tacit knowledge to the technology transfer process 2.Tutorial 1.