Roundtable II

Cooperation in Technology Transfer

Tuesday, 29 November 2005Tuesday, 29 November 2005Vienna, AustriaVienna, Austria

Structure of the PresentationStructure of the Presentation

Technology Transfer - Insight

Technology Competitiveness in Developing countries - Factors

Technology Upgradation - Hindsight

Technology Development – Challenges

India – Case studies

Technology Transfer – Way Ahead

Technology Transfer - Technology Transfer - InsightInsight

Technology Transfer

Knowledge Management

Patents & Licenses

Technology Transfer

Technology acquisition

Skill Development - Know How

Technology adaptation

Dissemination

FormsForms

PhasesPhases

Increases production efficiency - Long Term competitiveness of SMEs

Technology Transfer - Process

Verification

Knowledge

Awareness

Decision Making

Application

Brokering

DevelopmentDevelopmentInnovationInnovation

DesignDesign

TestingTesting

Technology CreationTechnology Creation

ModificationModificationIdentificationIdentification

EvaluationEvaluation

TestingTesting

Technology SourcingTechnology Sourcing

Technology Transfer is the suite of processes encompassing all dimensions of the origins and uptake of know-how, experience and equipment amongst, across and within

countries, organizations and institutions.

Technology Transfer – Main Issues

Slow uptake of technologies that support sustainable development, despite many initiatives for increased and effective transfer of technologies.

Need to emphasize on specific and practical methodologies and tools for promoting the adoption and use of latest technologies.

Absence of ubiquitous approach. Need to prioritize initiatives for developing countries depending on their needs and status.

Technology Competitiveness in Technology Competitiveness in Developing countries - FactorsDeveloping countries - Factors

Technology Competitiveness in Developing countries - Factors

Technology imports• Small number of developed countries provide most of technological

innovations. Most of the developing countries are neither innovating nor adopting. <Technology innovating economies..>

• Lacks capability to create globally competitive technologies• Lack of access to information on new technologies and innovations

Technology infrastructure• R&D institutes and testing facilities in developing countries fall short

of quality when compared to industrialized countries• Lack of collaborative research• Isolation of universities and R&D from Industry

Technology Competitiveness in Developing countries - Factors

Pace of technological change• SMEs lack the capability to constantly upgrade technologies in view

of rapidly changing technologies in developed countries• Easier in Process industries

Technology acquisition• Unit level technology absorption is low• Lack of incentive, direction and capability to update existing

technologies• Lack of ready access to capital• Relatively high transaction cost

Technology Competitiveness in Developing countries - Factors

Unit Level Interventions• Smaller firms find difficult to finance and coordinate the requisite

level of technological activity• Low participation in network of organizations and institutions

involved in diffusing information on technologies. (specially SMEs)

Availability of Skilled Manpower• Shortage of trained personnel• Lack of continuous capability development of manpower in technical

dimensions• New technologies are not adopted due to lack of skilled people thus

widening the technology gap.

Technology Upgradation - Technology Upgradation - HindsightHindsight

Knowledge Drivers of the 21Knowledge Drivers of the 21stst Century Century

Building Blocks &

Knowledge tools of

21ST Century

NETWORKS NANOTECH

COMPUTERS

NEURONSATOMS

BITS & BYTES

BIOTECH

GENES

Technology Foresight Process SummaryTechnology Foresight Process Summary

‘Global’ Trends

Business Vectors Technology Dynamics

Growth Opportunities

Organization’s Power Assets

Emerging Growth Opportunities©L Carlson Consulting

Define the question(s)Demography

Economics

Environment

Society

Government

technology

Technology Interaction Matrix

Software

H/M Int.

Med. Dev.

SensorsPhotonics

Wireless

Biotech

Nanotech

Adv. Mat.

Micr

oelec

tronic

s

Softw

are

Human

/Mac

h Int

Med

. Dev

.

Sens

orsPh

otonic

sW

ireles

sBiot

ech

Nanote

chAdv

. Mat.

EnablingPower Application Needs

Micro-elec.

Pacer, Gating

2nd order effect

Exponential Technol.

Exponential Technol.

Exponential

ICT Support to DesignICT Support to DesignRDCS: Robust Design Computation SystemRDCS: Robust Design Computation System

ICT Support to Product DesignICT Support to Product DesignOIS: Design – Manufacturing – Customer OIS: Design – Manufacturing – Customer

Feedback : Integrated ModelFeedback : Integrated Model

ICT Support to ManufacturingICT Support to Manufacturing

Customer Relationship ManagementCustomer Relationship Management (CRM) (CRM) Systems that allow you to manage relationshipSystems that allow you to manage relationship Strategy that puts the customer first, it's getting intimate with the Strategy that puts the customer first, it's getting intimate with the

customer - solidifying loyaltycustomer - solidifying loyalty Understanding and tracking customer habitsUnderstanding and tracking customer habits Links data together from all parts of the businessLinks data together from all parts of the business Warehouse of all the info of your customerWarehouse of all the info of your customer Maximizer, ACT!, Salesforce.com, Pivotal Maximizer, ACT!, Salesforce.com, Pivotal

Customer Relationship ManagementCustomer Relationship Management (CRM) (CRM)

Nanotechnology ApplicationsNanotechnology Applications

Nano-Technology

ResearchNNUNNSEC

Building blocksCoatings and surfaces

Consolidates and composites

BiochemicalDispersions &

structures

Processing and integration

System architectures Modeling tools and instruments

Electronic-magneticsystems

Photonics-Optics

Biodevicesand systems

Environmental, energy,health & safety systems

MRSECs,STCs, ERCs,

IUCRCs

Management of applications matter !Management of applications matter !

Technology Development – Technology Development – ChallengesChallenges

Technology Development - Challenges

Can be met through innovations management To be able to invest in technology creation at the risk of failing Adequate infrastructure required for technology creation IPR issues Adequate information relevant to strategic planning and market

development Developing countries have already lost precious time Creation of useful and usable technologies is a major factor in

ensuring that there is opportunity to make informed and confident choices in technology investment projects

Technology Creation should be best left for developed countries. Developing countries should focus on adapting, learning and

dissemination.

India – Case StudiesIndia – Case Studies

Machine Tools sector in India

A holistic programme implemented by UNIDO-ICAMT (International Centre for Advancement of Manufacturing Technology).

Emphasis on Technology dissemination through sensitization workshops, unit level interventions, participation in International fairs, Technology missions, skill upgration and market development activities.

Growth in 2004-05 was 47% Annual growth of over 90% in the number of CNC machines production in

the last two years. 50% increase in production of components and accessories. 101% increase in export of target group of machine tools – from USD 6.6

million to USD 13.3 million While the Technology innovation is still low, the sector has done extremely

well due to Technology dissemination, Skill upgradation, Unit level interventions & market development activities.

Auto Components sector in India Indian auto component industry has grown from US $ 3.9 Billion to US

$ 6.7 Billion in 3 years Exports have increased from US $ 578 Million in 2001-02 to US $

1000 Million in 2003-04. India has become the 2nd largest two wheeler manufacturers in the

world Increased competitiveness is due to increased capability of latest

technologies for continuous improvement when compared to other countries.

Emphasis on process engineering skills, product engineering and continuous improvement capability.

While the Research & Development activities are still at low level, the sector has witnessed phenomenal growth due to application of ICT tools,

Technology dissemination, Skill upgradation, Knowledge management in the area of Engineering Design.

Indian Software: Global Brand

2,170 2,420 2,580 3,4004,500

6,3007,680

9,870

12,500

17,000

8,47010,100

12,450

15,900

21,500

0

5,000

10,000

15,000

20,000

25,000

2000/01 2001/02 2002/03 2003/04 2004/05

Year

DomesticExportsTotal

USD Million

Source: NASSCOM

Software & Services Grow over 30 %

Health Care6% Others

25%

Telecom Service

7%

Telecom Equipment

6%

Manufacturing

13%

BFIS37%

Retail 6%

Asia Pac3%

W. Europe21%

Japan2%

North America

68%

Latin America &

ROW6%

By Verticals:

By Geography:

~ 80% of Fortune 500 outsource their IT from India

2.5 million broadband in 2004

10 million broadband in 2008

India: Fast Growing Market …

9.25 million TV Sets – 2004

16 million TV Sets – 2008

4 million PC Shipments – 200465 million mobile subscribers

- 2004

200 M Mobile subscribers by

20071 million Set Top Box – 2004

15 million Set Top Box - 2008

• More than 3 million cell phone subscribers added every month

• Sub $ 40 Mobile Phone

• Sub $ 225 PC ‘s would increase PC penetration.

India Hardware Industry projected at US $ 69 billion by 2008

14 Mil PC Shipments - 2008

Indian IT IndustryIndian IT Industry

Industry Turnover (2004-05) US $ 27.75 billion

Hardware Domestic: US $ 5 billionHardware Exports: US $ 1.25 billionSoftware Exports: US $ 17 billionSoftware Domestic: US $ 4.5 billion

Industry Turnover by 2008: More than US $ 100 Billion

While the Research & Development activities have been low, the sector has witnessed boom due to knowledge workers, Skill upgradation & capability

development.

Monopoly service providers Competitive regime with multiple

players (public & private sector) across service segments

Peak long distance tariff from Delhi to Mumbai of Rs.30/minute ($ 0.65/minute)

Peak cellular outgoing tariff of Rs.16/minute ($ 0.35/minute)

Rs.2-3 per minute ($ 0.04-0.07/minute)

Rs.1-2 per minute ($ 0.02-0.04/minute)

CompetitionCompetition

TariffsTariffs

From To

18 mn fixed line subscribers in March 1998

<1 mn cellular subscribers in March 1998

48 mn fixed line subscribers including FWT and Limited mobility CDMA

56 mn mobile subscribers

SubscribersSubscribers

Total industry revenue of US$ 4 bn in FY98

~ US$ 18 bn for FY05

<2% telephony penetration in March 1998

9.37% penetration

Industry SizeIndustry Size

PenetrationPenetration

No regulator Independent and active regulator (TRAI) and appellate tribunal (TDSAT)RegulatorRegulator

TRAI: Telecom Regulatory Authority of India; TDSAT : Telecom Disputes Settlement and Appellate Tribunal

Indian Telecom Sector

Indian Telecom Sector - Latest Technology at Affordable PricesLatest Technology at Affordable Prices

National policy is technology neutral but encourages global state of the National policy is technology neutral but encourages global state of the

art technologiesart technologies

All leading equipment and handset vendors have established significant All leading equipment and handset vendors have established significant

presence in Indiapresence in India

They have been instrumental in making mass wireless service viableThey have been instrumental in making mass wireless service viable

Capex / sub has dropped from US$300-400/sub to US$70-80/subCapex / sub has dropped from US$300-400/sub to US$70-80/sub

Entry handset prices have dropped from US$400-500 to US$50Entry handset prices have dropped from US$400-500 to US$50

Coexistence of dual wireless technology – CDMA and GSMCoexistence of dual wireless technology – CDMA and GSM

Growth at the rate of 30%Growth at the rate of 30%

Leapfrogging in Technology Adaptation has attributed to Telecom boom.

PAN-African Network 53 PAN-African countries to be connected as one network

through Satellite and Fiber Optics

Network to provide:• Tele-education• Tele-medicine• VVIP communication network• Internet• Videoconferencing• VOIP services• Support e-governance, e-commerce, infotainment, resource mapping

and metrological services

PAN-African Network To connect 5 universities to 53 learning centers, 10 Super

specialty hospitals to 53 Remote hospitals in rural areas

Indian Institutions to only make the programme running till the expertise is passed on to PAN-African countries

PAN-African network will be established, maintained and managed within a period of 3 years.

Handholding training will be imparted to the users and handed over by the end of 3 years

Novel way for sharing of knowledge & technology

Technology Transfer – Way Technology Transfer – Way AheadAhead

Technology Transfer in Developing countries – Road Map

Establishment of International Technology Centres Adopt demand-driven approach Focus on specific industrial sectors Establish Technology Trackers in leading industrialized countries Encourage application of technologies at the enterprise level through rapid

build up of awareness of need, diagnosis of economical requirements, technology transfer management etc

Emphasis on capability development Establishment of cooperative and collaborative partnerships between key

stakeholders

Implementation of technology driven programmes Focus on technology areas of core competence and with cross

sectoral impact demand of developing countries, thus increasing the international activities.

Design and implementation of technology transfer plans and specific actions

Dissemination of technology information – access to reliable and relevant information

Skill development activities Provide outreach programmes for SMEs for effective dissemination. A system that minimizes contractual and other legal risks. Access to Decision Support Tools.

Technology Transfer in Developing countries – Road Map

Technology Upgradation – Key Focus Areas

Skill upgradation

Capacity building

Technology Dissemination

ICT Applications to Technology & Management Processes

Market access

Global Benchmarking of Quality

Technology Innovations/R&D

Others

Key Drivers

Thank YouThank You

Technology Innovating Economies Technology Innovating Economies US-Patents per million populationUS-Patents per million population

USA 314.43Japan 260.99Taiwan 239.78Switzerland 195.65Sweden 195.65Israel 163.32Finland 140.21Germany 135.73Canada 115.80Denmark 89.55

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