---
title: "Technology transfer and its importance"
subject: "Energy Environment and Society"
chapter: 1
key: "semester_7/energy_environment_and_society:tech-transfer-importance"
source: https://www.bctengineer.com/q/semester_7/energy_environment_and_society/tech-transfer-importance
site: BCT Engineering
---

# Technology transfer and its importance

Energy Environment and Society · Chapter 1: Technology and Development

- Asked in: 2071 Chaitra, 4 marks; 2070 Asar, 2 marks; year not given (asked 2 times)
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/energy_environment_and_society/tech-transfer-importance
- Whole chapter: https://www.bctengineer.com/md/semester_7/energy_environment_and_society/chapter-1

## Question

What is technology transfer? Describe its importance to society and nation.

## Short answer

Technology transfer is the movement of technology, knowledge, skills and equipment from one organization or country to another. It occurs via trade, licensing, FDI, training, turnkey projects and information networks. It improves living standards, creates jobs, speeds up industrialization, reduces import dependence, and builds national capacity.

## Answer

**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.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Technology transfer means:
   A. only buying machines from another country
   B. inventing a new technology within one's own laboratory
   C. moving technology, knowledge, skills and equipment from a source to a receiver who can use, adapt and develop it
   D. only the export of raw materials
   Answer: C. Transfer covers technology, knowledge, skills, methods and equipment, so the receiver can use, adapt and further develop them. (Key point: Meaning of technology transfer)

2. Which of the following is a way of technology transfer?
   A. Closing local industries
   B. Burning fossil fuels
   C. Reducing school enrolment
   D. Foreign direct investment and joint ventures
   Answer: D. Ways include purchase, licensing, FDI and joint ventures, training, turnkey projects, consultancy, aid and publications. (Key point: Ways of transfer)

3. How does technology transfer benefit a nation?
   A. It speeds up industrialisation without repeating research already done elsewhere and reduces import dependence
   B. It makes the country fully dependent on foreign firms
   C. It removes the need for local engineers
   D. It increases fossil fuel imports
   Answer: A. Transfer saves the long research effort, reduces imports, earns foreign exchange (e.g. electricity export) and builds national capacity. (Key point: Importance to the nation)

4. For technology transfer to succeed, which condition is needed?
   A. The technology is as complex as possible
   B. The technology is appropriate and the receiver can absorb and maintain it, with training included
   C. Local involvement is avoided
   D. Spare parts are not provided
   Answer: B. Success needs appropriate technology, an absorbing receiver, and contracts with training and local involvement. (Key point: Conditions for success)

## Related in Energy Environment and Society

- [Appropriate technology and impact on society](https://www.bctengineer.com/question.md?key=semester_7%2Fenergy_environment_and_society%3Aappropriate-technology-society-impact) — Energy Environment and Society, chapter 1
- [Technology, importance and transfer method](https://www.bctengineer.com/question.md?key=semester_7%2Fenergy_environment_and_society%3Atechnology-importance-transfer-method) — Energy Environment and Society, chapter 1
- [Technology transfer and impact on life](https://www.bctengineer.com/question.md?key=semester_7%2Fenergy_environment_and_society%3Atechnology-transfer-life-impact) — Energy Environment and Society, chapter 1
- [Appropriate technology explained](https://www.bctengineer.com/question.md?key=semester_7%2Fenergy_environment_and_society%3Aappropriate-technology-explain) — Energy Environment and Society, chapter 1, asked 3×
- [Appropriate technology and sustainable development elements](https://www.bctengineer.com/question.md?key=semester_7%2Fenergy_environment_and_society%3Aappropriate-technology-sustainable-elements) — Energy Environment and Society, chapter 1
- [Impact of technology, sustainable development](https://www.bctengineer.com/question.md?key=semester_7%2Fenergy_environment_and_society%3Atechnology-impact-society-sustainable) — Energy Environment and Society, chapter 1

## Related in other subjects

- [Impact of technology on society](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Atechnology-impact-society) — Engineering Professional Practice, chapter 1, asked 3×
- [Impact of technology on environment and society](https://www.bctengineer.com/question.md?key=semester_7%2Ftechnology_environment_and_society%3Atech-impact-environment-society) — Technology, Environment and Society, chapter 1, asked 2×
- [Joint venture and technology transfer](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Ajoint-venture-technology-transfer) — Project Engineering, chapter 1, asked 2×
- [Industrial society entering information society](https://www.bctengineer.com/question.md?key=semester_7%2Ftechnology_environment_and_society%3Aindustrial-to-info-society) — Technology, Environment and Society, chapter 3, asked 2×
