How does technology transfer affect the economy in general and businesses in particular?
Technology transfer is necessary and important for the development of the global economy. Especially for countries undergoing industrialization and modernization, including Vietnam, technology transfer is an essential need. So what exactly is technology transfer, and what benefits does it bring businesses? Let's find out the details with SBiz.vn in the following article.
What is technology transfer?
Technology transfer is a familiar concept in the economy. It is understood as the process of transferring ownership or the right to use part or all of a technology, from the party holding the right to transfer it to the party receiving the technology.
Specifically:
Transfer of technology ownership: the technology owner transfers all rights to possess, use and dispose of the technology to another organization or individual. If the technology is subject to industrial property protection, the transfer of technology ownership must be carried out together with the transfer of industrial property rights, in accordance with the law on intellectual property.
Transfer of the right to use technology: an organization or individual allows another organization or individual to use its technology.
Understanding what technology transfer means
The role of technology transfer for businesses
Why do businesses need technology transfer? What benefits does it bring the economy in general and businesses in particular? Here are some of its most basic roles.
Keeping up with technology trends in the market
When using technology transferred from another organization, a business doesn't spend too much time preparing production stages. This helps it quickly keep up with market trends.
Accelerating technology innovation
For a product to compete in the market, it must embody a lot of know-how. The best way to achieve that is to keep innovating technology. Depending on each product's strategy, innovation can be carried out part by part, stage by stage, or all at once. Technology innovation is also seen as a need of the technology transfer process.
Technology transfer to keep pace with the trends of the 4.0 era
Any business that uses technology or software solutions must go through a “technology transfer” step when carrying out licensing transactions. The ERP model is widely used to renew management and production methods, so it has become one of the important factors in this field.
Limiting risks in production
When researching and developing a new production technology, a business has to test many times to find the best solution, so the risks in this process are higher.
However, when buying a product of technology transfer, it has already been thoroughly tested and researched by the previous organization. So businesses receiving technology transfer minimize their risks.
Minimizing risks in production through technology transfer
Easily customizing signature products
Although a business receiving technology transfer reapplies the previous organization's technical processes, you can still customize and adjust them during production to create your own signature products.
Industries where technology is often transferred
Today, technology transfer is mainly applied in consumer goods manufacturing, in typical industries such as textiles and garments, footwear and food processing...
Technology transfer is also common in information technology, space technology, aviation... Vietnam is proof of successful technology transfer in these fields.
Viettel Group is piloting a 5G network nationwide
For example, in information technology, Vietnam has made great strides. Many modern technologies have been transferred and applied successfully, such as digital telecom networks, CDMA technology and fiber optic networks... and most typically, 4G networks.
Viettel (Military Industry and Telecoms Group) has successfully applied IT innovations through technology transfer from abroad combined with its own technology research and development. Viettel is now also piloting a 5G network for users in Vietnam.
>>> The surprising development of control engineering technology
In summary
Clearly, applying technology transfer has brought a new step forward for the development of the economy in general and Vietnam's economy in particular. However, businesses should note that technology transfer should be done “slowly but surely”, with specific solutions suited to the country's economic development. Avoid taking on new technology from advanced countries without a clear strategy and direction, which could make technology transfer backfire and set economic efficiency back.