Technology Creation and Technology Transfer

Characteristics

We can discuss innovation on several levels. The easiest division is between technological innovation and non-technological innovation.

Non-technological innovation would include design, introduction of improved marketing strategies and actions and similar aspects. It can also be referred to as innovation not including the creation of new knowledge. One of the important aspects of that type of innovation is that in many cases it is innovation intrinsic to the company or organization implementing it. As it does not involve the creation of new knowledge it is automatically based on existing knowledge, even if not at the level of the company, or sector.

Another type of innovation is innovation based on knowledge creation. The knowledge creation can be technological or it can be based on technology developed by others. When the new knowledge is created, either by the firm implementing it, or by someone else, it can be protected (see Chapter 04—Knowledge packaging and knowledge protections) and can be used for dealing – selling and buying, transferred and divided, or added to.

External innovation includes Knowledge imported from the outside of the firm, either from the public domain or from other entities and implemented inside the firm. The introduction of an ERP system to improve the firm performance, compliance with standards, or a purchased patent can be additional examples. External innovation requires openness from the firm receiving it and can also be termed “Open Innovation”.

When internal innovation is encountered there is very little complication as we are dealing with a single entity doing the work, and enjoying the results of the work. When such internal innovation involves external funding, it may come from an R&D support program. In many cases the firms involved in internal development can choose to do so based on their own funds.

When dealing with Open Innovation, involving external sources and the firm, there are several organizations involved in addition to the funding source, and although there are instances when each of the participants fund their own activity it is very common for them to prefer an R&D Support Program, especially when the partners are not equal partners either in size or in marketing abilities. Since firms financing their own activities can be viewed as a private matter similar to the self-financing of a single firm and therefore not part of the discussion in this book. In this book, we shall discuss the R&D support program, and will differentiate between the programs supporting a single entity and several entities.

One of the most prevalent terms when dealing with Open Innovation as mentioned above, is that Innovation coming at least in part from outside the organization, is Technology Transfer. It is a major aspect when dealing with most of the R&D Support programs, as in any case when there is more than one entity performing the R&D, Technology Transfer, at least in part is involved.

Technology Transfer is a transfer of the technological knowledge or part of it from one entity to another. It is done in order to allow the receiving entity to be able to acquire a required technology either for direct commercial use, or in order to further develop the technology towards that end. It is important to note that the transfer of the technology does not need to happen serially, but can be concurrent.

An example would seem to be in order here.