Technology transfer and its importance

Technology transfer is the process of moving technology, knowledge, skills, methods and equipment from one organisation, region or country (the source) to another (the receiver) so that the receiver can use, adapt and further develop it.

Ways of transfer

• Direct purchase of machines and equipment, licensing and patents
• Foreign direct investment and joint ventures
• Training, scholarships and exchange of experts
• Turnkey projects, consultancy and aid projects (for example hydropower built with foreign help)
• Publications, conferences and the internet

Importance to society

• Improves living standards through better health, water, communication and energy services.
• Creates jobs and builds skills.
• Raises productivity in farming, small industry and services.
• Spreads clean and efficient technology, such as biogas, solar systems and efficient stoves.

Importance to the nation

• Speeds up economic growth and industrialisation without repeating the long research that other countries have already done.
• Reduces import dependence and helps earn foreign exchange through exports (for example electricity export from Nepal to India).
• Builds national research and engineering capacity.
• Helps meet environmental goals such as lowering emissions.

For transfer to succeed, the technology must be appropriate, the receiver must be able to absorb and maintain it, and the contract should include training and local involvement.