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

# Technology, importance and transfer method

Energy Environment and Society · Chapter 1: Technology and Development

- Asked in: 2074 Chaitra, 2+4 marks
- 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/technology-importance-transfer-method
- Whole chapter: https://www.bctengineer.com/md/semester_7/energy_environment_and_society/chapter-1

## Question

Describe the term technology with its importance and method of transfer technology in modern time.

## Short answer

Technology is the application of scientific knowledge, tools and processes to solve practical problems. It raises productivity, improves health, education and communication, and supports development. Modern methods of transfer include trade, licensing, FDI, turnkey contracts, training, information networks, and reverse engineering.

## Answer

**Technology** is the application of scientific knowledge, tools, techniques and processes to solve practical problems and make human work easier. It includes machines, materials, methods and the know-how to use them.

#### Importance of technology
- Raises productivity in agriculture, industry and services.
- Improves health care, education, communication and transport.
- Creates new jobs and industries, and raises income.
- Saves time, energy and resources, and helps reduce pollution (clean technology).
- Helps in disaster warning, defence and national development.

#### Methods of technology transfer in modern times
1. **Trade in equipment and products:** importing machines, vehicles and plants.
2. **Licensing and franchising:** the owner permits use of a patent, design or process for a fee.
3. **Foreign direct investment (FDI) and joint ventures:** foreign companies set up industries and share know-how with local partners.
4. **Turnkey and EPC contracts:** a foreign firm builds a complete plant (for example a hydropower plant) and hands it over, with operator training.
5. **Training, education and exchange:** scholarships, study tours, experts and workshops.
6. **Consultancy and technical aid:** bilateral and multilateral donors and agencies support projects.
7. **Information networks:** journals, patent databases, open-source designs and online courses.
8. **Reverse engineering and local R&D:** adapting imported technology to local needs.

Good transfer needs a receiver who can absorb the technology: skilled people, policy support and affordable spare parts.

## Check yourself

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

1. Technology is best defined as:
   A. only physical machines and equipment
   B. pure scientific theory with no practical use
   C. the study of ancient history
   D. the application of scientific knowledge, tools, techniques and processes to solve practical problems
   Answer: D. Technology includes machines, materials, methods and know-how used to solve practical problems. (Key point: Definition of technology)

2. In licensing, technology is transferred when:
   A. the owner permits use of a patent, design or process for a fee
   B. a firm builds a plant and keeps ownership forever
   C. a student is given a scholarship
   D. a country bans imports
   Answer: A. Licensing/franchising is permission to use a patent, design or process, usually paid for. (Key point: Licensing and franchising)

3. What is a turnkey / EPC contract?
   A. A local firm imports spare parts only
   B. A foreign firm builds a complete plant and hands it over with operator training
   C. Donors give grants without any project
   D. A university publishes a journal
   Answer: B. In a turnkey contract the complete plant (e.g. a hydropower plant) is built and handed over with training. (Key point: Turnkey and EPC)

4. What does good transfer require from the receiver?
   A. Only foreign experts
   B. Only large capital
   C. Skilled people, policy support and affordable spare parts
   D. No local involvement
   Answer: C. The receiver must be able to absorb the technology with skills, supportive policy and spares. (Key point: Absorption capacity)

## Related in Energy Environment and Society

- [Technology transfer and its importance](https://www.bctengineer.com/question.md?key=semester_7%2Fenergy_environment_and_society%3Atech-transfer-importance) — Energy Environment and Society, chapter 1, asked 2×
- [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

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