Technology Transfer And Human Resource Development

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VOLUME 26 NUMBER 11 1994

Technology Transfer and Human Resource Development Jon-Chao Hong The Process of Successful Technology Transfer

and economic developments in the long run. Transferring production techniques costs money at the beginning yet makes less of a contribution than developing one’s own techniques; however, it is more than purchasing new techniques. Purchasing techniques will be subjected to foreign control in some way and will do little good for industrial upgrading.

From the viewpoint of macroeconomics, technology transfer is conducted between governments. Therefore, the top priority is that the government must identify what fields of technology are needed to achieve its economic goals. Generally speaking, three factors have to be taken into consideration: (1) similarity; (2) contrast; (3) compatibility. For example, Taiwan Aerospace (TAe) and British Aerospace (BAe) have a similar interest in the aerospace industry: it is a contrast in that TAe provides money, while BAe provides technology; as for complementarity, TAe must complement the technology it needs to develop Taiwan’s own aerospace industry. Of course, identifying what fields of technology are needed does not mean turning to foreign countries for technology transfer immediately. The task of first importance is to look for alternative technology at home, that is, to look for a domestic re-engineering enterprise with a potential to develop the needed technology once it is triggered with the most advanced technology. Second, if such enterprises cannot be found at home, its social and economic costs have to be appraised first before seeking technology transfer. Generally speaking, technology can be gained in three ways (see Figure 1): (1) purchasing production techniques; (2) transferring production techniques; (3) developing one’s own techniques. Developing new techniques costs more money, but it makes the greatest contribution to social

Elements of Technology Transfer Naito[1] deducted four elements from the process of technology transfer: human resources, information, resources, and capital (see Table I). In terms of the human resource element, the process involves the exchange of technicians. The technology provider must send technicians to instruct the technology receiver, or the receiver must send technicians abroad to learn the knowhow or administration skills. In terms of the information element, the provider has to give the receiver information about the development or design of the technology, production and administration skills, manufacturing skills, and marketing skills. In terms of the resource element, the provider must not only sell the receiver machinery and equipment, research equipment and materials, and production materials, but also Purchasing production techniques

Technology transferring effect Transferring production techniques

Developing one's own techniques Time

Figure 1. The Technology Transferring Effects

Industrial and Commercial Training, Vol. 26 No. 11, 1994, pp. 17-21. © MCB University Press, 0019-7858.

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INDUSTRIAL AND COMMERCIAL TRAINING

Elements of transfer

Methods of transfer

Mechanism

Human resources

Technician exchange Technician dispatch Patents Technological books (or materials) Administrative books (or materials) Trade of machinery and equipment Trade of research equipment and material Trade of production material Joint venture Industrial co-operation

Know-how training Administration training Design and development skills Production and administrative skills Manufacturing technology Marketing skills Methods of development and experiment Methods of production

Information

Resources

Capital

Share of ownership Complying with the contract

Source:[1] Table I. Elements of Technology Transfer

familiarize the receiver with the methods of development, experiment, and production. As for the capital element, both sides can transfer technology either through joint ventures or industrial co-operation; of primary importance is the compliance of the contract and share of ownership by both sides (e.g. the department stores co-managed by Taiwanese and Japanese enterprises). Among the four elements, human resources is the most important because it plays a key role in how new technology is acquired and how old and new technologies are integrated during the process of technology transfer. In other words, human resources is the main interface of technology transfer. To make the technology transferred take root at home, technology exchange has to be transformed into technology exchange through human involvement. In addition to being achieved through the direct exchange of information between the technology provider and receiver, technology exchange is also achieved in four ways: (1) reading professional journals or books; (2) attending academic conferences, especially international ones; (3) taking field trips; (4) using academic networks.

unknowingly to acquire technology that is out-ofdate.

The Development of Human Resource in Technology Transfer The most important interface in technology transfer is human resources, therefore the key point in technology transfer is how to transform human resources into an idea interface. The development of human resources in technology transfer can be conducted in two ways: (1) from a macrocosmic point of view, the training is done through project-based learning; (2) from a microcosmic point of view, the training is done through self-development. Of course, self-development is still indispensable in project-based learning. To conduct the technology transfer into technology exchange, the technology receiver has to organize a learning group to learn the ideas and methods of the technology provider. Without systematic learning, the receiver will find himself actually benefiting nothing from technology transfer. Generally speaking, of the two ways of training, the more systematic way of training is through project-based learning, which undergoes five stages: (1) Confrontation. In this stage, some people may reject new technology because the shortcomings of their original technology will be revealed.

The skills and information acquired in indirect ways can serve as references to those acquired through direct transfer; otherwise, investment of a huge amount of capital may only serve

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VOLUME 26 NUMBER 11 1994

(2) Identification of problems. The functions of the original technology are reviewed in terms of its effectiveness and efficiency. (3) Design of new functions. The functions of the new system either are integrated into those of the original system or replaced. (4) Simulation.The effectiveness of technology transfer is tested. (5) Evaluation. The effectiveness of technology transfer is appraised, and standards of similar technology are set. Moreover, the trainees in technology transfer have a different task at each of the five stages. They must (see Table II): (1) collect directly and indirectly relevant information (such as space requirements and supply of materials) and classify the collected information during the confrontation stage; (2) develop mechanical and applicable information during the problem identification stage; (3) sort out the functions and operating logics of each part of new technology during the designing stage of new operating approaches of function; (4) make a structural analysis of the mechanism of the operation system during the simulation stage; (5) stress the assembly and maintenance of the functions of the operating system, and examine the possibility of simplification during the evaluation stage. From a microcosmic point of view, at each stage of technology transfer, the trainee can accomplish the transfer of “idea interface” only by selfdevelopment. In other words, each stage has its own approach and key points (see Table III).

applying experience and rules to evoke technological principles and process methods of the production system; ● pointing out the meanings and shortcomings of the theory and methods in practice; ● sorting out the principle and structure of the original operating system or functions. ●

Identification of the Problems The approach is to analyse the themes. This can be achieved by: ● analysing the goals and mechanism of the production or operating system; ● analysing the process of the interaction of different mechanisms and writing them down as operation steps; ● elaborating under each step the approaches to handle a certain condition and their possible or definite results. Design of New Functions The approach is to adapt to the new principles and rules. This can be achieved by: ● finding out the operating principles and rules of the new technology; ● pointing out the effective parts of the operating system and production functions. Simulation The approach is to test the operating procedures and production functions. This can be achieved by: ● symbolizing the simulation of the new system to serve as the conditions; ● examining whether the handling approaches and the production system comply with the goals and mechanism of the production system or the operating procedures.

Confrontation The approach is to sort out the similarities and differences of the new and old systems in terms of their operating theory and rules. This can be achieved by:

Evaluation The approach is to formalize the transferred technology. This can be achieved by:

Stages of technology transfer

Tasks of the trainees

Confrontation Identification of the problems Design of new functions Simulation Evaluation

Finding out the problems of the original system Developing mechanical analysis Sorting out the functions and operating logics of the new technology Making a structural analysis of the operating system Assembling and maintaining the functions of the operating system

Table II. Technology Transfer and Learning

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INDUSTRIAL AND COMMERCIAL TRAINING

appraising the operating effectiveness of the new system and then analysing the conditions of its integration and application to select applicable themes; ● working out the practical procedures to apply the operating principles and rules of this system to other systems; ● formalizing the above procedures or principles of each stage, i.e. making them serve as the standards of technology transfer. Most of the above heuristic training approaches involve analysis, induction, and examination. Therefore, during the process of technology transfer, the establishment of individual system thinking is the most fundamental apart from efforts both from a macrocosmic and a microcosmic point of view (see Figure 2). The processes of the establishment of individual system thinking can be described as follows (see Figure 3): (1) Examine whether the knowledge base accumulated through personal experience has

an appraisal of dissonance when new information enters; identify the problems of dissonance if there are any. (2) Form hypotheses after identifying the problem. (3) After testing or verifying the applicability of all hypotheses, if the hypothesis is proved, generate conceptualization.



Stages of technology transfer

Technology transfer interface Individual development application Individual thinking system establishment

Figure 2. The Relations between System Thinking and Technology Transfer

Approach

Training approaches

Confrontation

Clarification of principles and rules

Applying experience and rules to evoke the principles and methods of the operating system Pointing out how principles and methods are applied Clarifying the framework of theory

Identification of the problems

Analysis of themes

Analysing the goals and mechanisms of production or operation Analysing the processes of mechanical interaction and adapting them into steps of action Elaborating under each step the approaches to handle a certain condition and their possible or definite results

Design of new functions

Adaptation of principles and rules

Finding out the principles and rules of new technology Pointing out the effective part of the operating system and the production functions

Simulation

Examination of operating approaches and requirements

Symbolizing the handling process Examining whether the conditions and handling approaches accord with the goals and mechanisms of production

Evaluation

Formalization of transferred technology

Setting up applied themes (under a certain condition) Setting up the procedure of self-practicum and drills Making action standards become rules or provisions

Source:[2] Table III. The Training in Technology Transfer

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VOLUME 26 NUMBER 11 1994

Form hypothesis

Exploration (induction)

Problem identification

Applicability (deduction)

Outside-in Inside-out

Select information (dissonance/appraisal)

Generate conceptualization

Strategy (knowing when)

Integration (confirmation)

Efficiency

Effectiveness

Development (knowing why)

Evolutionary need Operations (knowing what) (knowing how)

Knowledge base

Figure 4. Knowledge-development System

Figure 3. The Operation of System Thinking

further associating it with the original knowledge shown in Figure 4.

(4) Integrate the new information into the original knowledge base and establish a new mental model. In fact, the process is operating every day in everyone’s mind, but it may stop at the first step or somewhere else, where it has not finished the whole course. This kind of thinking stop can perhaps be called a “short circuit”. Why does the “short circuit” in thought process happen at the first step? Basically, this results from the lack of a sense of problem, which usually implies overlooking the inaccuracy message of one’s work, overlooking the inconsistency message of one’s work, and the inaccuracy or inconsistency message. Consequently, the dissonance is not detected and remains unimproved. Why does the “short circuit” occur at the second step? When identifying problems, most people usually take these problems for granted and justify them, or do not think aloud their sense of dissonance and speak it aloud. Therefore, the problems are still hidden deep in their minds. What causes a “short circuit” to happen at the third step? When forming hypotheses, most people do not take hypothesis formation seriously and just casually put some points forward as hypotheses; or leave out some hypotheses deliberately to save themselves some trouble, or have no desire to question the cause and effect of the new problems when verifying hypotheses. What causes a “short circuit” to occur at the fourth step? When integrating the new information into their knowledge base, they place emphasis only on operation knowledge – knowing what and knowing how. Emphasis is not placed on knowledge – knowing when, or development knowledge, and knowing why. The establishment of these two types of knowledge is the source of the regenerative system. This “short circuit” also occurs quite frequently when acquiring knowledge from reading or listening, owing to the action of isolating the new concept without

Conclusion Technology transfer usually requires training, but the technology receiver will never catch up with the provider if the training is inefficient or ineffective. Therefore, the key issue of technology transfer is how to establish the methods of learning technology and change the system of thinking of the trainees. Moreover, the degree of technology transfer is interrelated with the attitude of the trainees. Those who have no willingness to learn cannot efficiently absorb the technology transferred to them. In addition to methods of technological exchange, methods of and time for training must be provided in the contract; the trainees must get down to the bedrock so that the technology transferred can take roots and be regenerated.

n References 1. Naito, Y., “System Innovation: Technology Transfer”, Enterprise Diagnosis, Vol. 10, 1989, p. 60. 2. Kazuo, M. and Yasumasu, H., “The Educational Methods of Industrial Technology”, Vocational Training Research (Japan), Vol. 1, 1989, pp. 1-29.

Jon-Chau Hong is Professor in the Department of Industrial Education, National Taiwan Normal University, Taiwan, Republic of China.

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