Demystifying the Technology Transfer Process

 The concept of technology transfer is age-old but it’s gaining popularity in the wake of globalization and regional integrations, for the role it has played in fostering knowledge-based economies. Modern-day technology with its application in industry originated in the United Kingdom and quickly rippled through Europe, particularly France and Germany, and across to the United States followed by Japan in East Asia. This transfer of technology has continued even to this day; reshaping every aspect of our lives, from work to education, from socializing to commerce and beyond.

However, the transfer of technology, as well as the associated process, is shrouded in numerous myths, predominantly in developing countries, and Pakistan is no exception. Dispelling them is critical because cultivating technological capabilities within the country through the international transfer of technology in the backdrop of economic transformation in China represents an opportunity and should not be missed out.

The first and foremost myth is about technology per se. More often than not, we think of technology as a synonym for digital technology which has gotten more attention at the expense of other technologies that are transforming our lives. Top technological trends featuring digital technologies, contemporary big digital tech companies making headlines now and then, as well as frequent references to Silicon Valley in our technology discourse may have influenced our current perception of technology. Properly understood, any new and better way of doing things is technology, says Peter Thiel, co-founder of PayPal. The printing press technology and the even earlier invention of paper by the Chinese, the first industrial revolution’s high-pressure steam engine and then electricity and transistors in the second and third industrial revolutions, are among the inventions that irrevocably changed our lives. The mRNA vaccine technology used in the development of COVID-19 vaccines is one of the most recent technological marvels. So, the essence of technology should get across to all concerned with little ambiguity to devise strategies for developing technological capabilities in the country.

Then there’s the second myth about the transfer of technology. It is often the case governments and public officials in developing countries think of “transfer” as a kind of “free download” of technology, and further assume that the “haves” would donate technology to “have nots” in exchange for facilitating them in their host countries. Nonetheless, technology is viewed as a commodity in the technology market that must be negotiated and bargained for, and a price must be paid to obtain it. To make headway on this front, the mistaken connotation of technology transfer must be rectified.

The third myth concerns the scope and timing of the technology transfer. Technology is frequently regarded as a physical object and/or facility in the form of tools, machines, or equipment. Nonetheless, the transfer entails the documentation and the demonstrated ability to use the technology effectively for the intended purpose. For long-term sustainability, human abilities such as skills, knowledge, expertise, and creativity should be prioritized to improve the absorptive capacity of the receiving party in the technology transfer project. Furthermore, technology should be transferred at a rate and time consistent with the country’s economic and industrial objectives. Otherwise, the history of industrialization is littered with failed attempts of technology transfer.

Let’s take another biased perspective on technology transfer to continue our debate. Many people feel that access to technology is what characterizes development. The belief is that if poor nations are provided access to technology, then the gap between poor and rich will eventually close. In reality, developing technological capabilities necessitates not only access to technology but also the know-why in addition to the know-how of the technology. Taiwan would never have achieved the technological capability in integrated circuit board manufacturing if organizations such as Industrial Technical Research Institute (ITRI) and Electronics Research & Service Organization (ERSO) had not supported kow-why component of the circuit board knowledge. The former was founded in 1973 to bring foreign technology into Taiwan, while the latter was established as part of ITRI to provide much-needed electronics R&D to the future industry. Taiwanese diaspora which included a few graduates in the subject domain made the transfer and consolidation of the technology possible. As a result, few Taiwanese firms have emerged on the global stage. Taiwanese Semiconductor Manufacturing Co. (TSMC) now dominates the highly sought-after chip industry with market capitalization to the tune of $550 billion, placing it among the top 10 in the world.

To expand on the significance of know-why and its role in the development of technology eco-systems, let’s refer to the running example. Taiwan obtained manufacturing technology on how-to operate integrated circuit businesses but for long-term sustainability, know-why was acquired through the acquisition of design and R&D from the US firm RCA and further refined through multi-phased projects that lasted for 25 years. This enabled Taiwanese firms’ transition from integrated circuit boards to miniaturization and then to computers. So the takeaway is to innovate using know-why component of knowledge in order to adapt to market demand. A single technological transaction will not suffice to remain in business.

To conclude, these myths are widespread in developing countries, including Pakistan. The reason could be that we don’t comprehend the full spectrum of the technology transfer process. If properly understood, the instilling of technology in society is far more complex than one can imagine. To achieve the desired results, both the public and private sectors must be involved. Before any meaningful negotiations for technology transfer with friendly countries like China can begin, the primary stakeholders in technology transfer must understand the technology phenomenon and debunk these myths.