VOLUME 26 NUMBER 11
1994
Technology Transfer and
Human Resource
Development
Jon-Chao Hong
The Process of Successful Technology
Transfer
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
Industrial and Commercial Training, Vol. 26 No. 11, 1994, pp. 17-21.
© MCB University Press, 0019-7858.
17
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.
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 know-
how 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

Elements of transfer Methods of transfer Mechanism

Human resources Technician exchange Know-how training

Technician dispatch Administration training
Information Patents Design and development skills
Technological books (or Production and administrative
materials) skills
Administrative books (or Manufacturing technology
materials) Marketing skills
Resources Trade of machinery and Methods of development
equipment and experiment
Trade of research equipment Methods of production
and material
Trade of production material
Capital Joint venture Share of ownership
Industrial co-operation 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.
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
unknowingly to acquire technology that is out-of-
date.
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.

18
 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 self-
development. In other words, each stage has its
own approach and key points (see Table III).
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:
● 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.
Evaluation
The approach is to formalize the transferred
technology. This can be achieved by:

Stages of technology transfer Tasks of the trainees

Confrontation Finding out the problems of the original system

Identification of the problems Developing mechanical analysis
Design of new functions Sorting out the functions and operating logics of the new technology
Simulation Making a structural analysis of the operating system
Evaluation Assembling and maintaining the functions of the operating system

Table II.
Technology Transfer and Learning

19
 INDUSTRIAL AND
COMMERCIAL
TRAINING

● appraising the operating effectiveness of the an appraisal of dissonance when new

new system and then analysing the conditions information enters; identify the problems of
of its integration and application to select dissonance if there are any.
applicable themes; (2) Form hypotheses after identifying the problem.
● working out the practical procedures to apply
(3) After testing or verifying the applicability of
the operating principles and rules of this
all hypotheses, if the hypothesis is proved,
system to other systems;
generate conceptualization.
● formalizing the above procedures or
principles of each stage, i.e. making them
serve as the standards of technology transfer.
Technology transfer interface
Most of the above heuristic training approaches
involve analysis, induction, and examination.
Individual development application
Therefore, during the process of technology
transfer, the establishment of individual system Individual thinking system establishment
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):
Figure 2.
(1) Examine whether the knowledge base The Relations between System Thinking and
accumulated through personal experience has Technology Transfer

Stages of technology
transfer Approach Training approaches

Confrontation Clarification of Applying experience and rules to evoke the

principles and rules principles and methods of the operating system
Pointing out how principles and methods are
applied
Clarifying the framework of theory
Identification of Analysis of Analysing the goals and mechanisms of
the problems themes 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 Adaptation of Finding out the principles and rules of new
functions principles and rules technology
Pointing out the effective part of the operating
system and the production functions
Simulation Examination of Symbolizing the handling process
operating Examining whether the conditions and
approaches and handling approaches accord with the goals and
requirements mechanisms of production
Evaluation Formalization of Setting up applied themes (under a certain
transferred condition)
technology 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

20
 VOLUME 26 NUMBER 11
1994
Applicability
Form (deduction) Generate
hypothesis conceptualization
Exploration Outside-in Integration
(induction) (confirmation)
Inside-out
Problem Knowledge
identification Select information base
(dissonance/appraisal)
Figure 3.
The Operation of System Thinking
(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
21
Strategy Effectiveness Development
(knowing when) (knowing why)
Efficiency Evolutionary need
Operations
(knowing what)
(knowing how)
Figure 4.
Knowledge-development System
further associating it with the original knowledge
shown in Figure 4.
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.