Technology Transfer: New Delhi. Government is preparing to curb royalty payments to foreign units in relation to Technology Transfer. Sources said that due to the excessive flow of such funds to foreign companies, the government is planning to take this step.

Ministry of Commerce and Industry has proposed to set up the limits of royalty payment in cases of Technology Transfer or collaboration with foreign companies directly or indirectly or through any company in India. Sources said that this proposal will now be issued for inter-ministerial consultations.
Technology Transfer
Technology Transfer

What is Technology Transfer?

To meet development programs in the process of economic development before semi-developed countries, it is necessary to achieve the technical knowledge skills and achievement of the equipment. In these countries, the technical requirements of technology embedded in the development programs and the difference shown in the domestic stock of technology are so much that it requires the transfer of technology from developed countries.

The role of transferring technology is bilateral:

(i) At the first level, it provides a complementary technique available. This can fill the technical requirements of the development plans and the time intervals of the technique.

(ii) Secondly, it enriches the domestic capabilities by the creation of this new technology. While the role of the first level is important in the short-term, the second level role is important for long-term planning.


Methods of Technology Transfer:

Transfer of technology from one country to another country can be done in many ways. The following are several important ways:

The extent of such payment is proposed to be limited to four percent domestic sales and seven percent of exports for the first four years. According to the proposal, for the next three years, the limit will remain three percent domestic sales and six percent of exports. For the next three years, the limit will be two percent and four percent. In the following years, it will be one percent local sales and two percent of exports.

(i) Through reference books and exchange of printed information.

(ii) From the traffic of technically skilled persons

(iii) From the transfer of foreign appropriation and equipment.

(iv) Through technical participation programs which are possible at both private and government level.

(v) Import of machinery and machinery.

(vi) Licenses, patents, and other agreements

In the above methods, the technology transfer, except for foreign appropriation, has a direct impact.

Transfer of foreign appropriation techniques often happens in a bilateral manner:

(i) By mutual transfer of technology between the two countries

(ii) Increasing the amount of domestic appropriation in the country.

In fact, the technology transfer between the two countries is not freely done. Includes secret information related to various processes and product information and property rights, licenses, etc.

Technological Balance of Payments:

International exchange of technical knowledge can be displayed by technical payment equilibrium. By this, it is possible for a country to compare the payment of technical knowledge, patent and license imports, by the receipts received as a result of the exports made by that country.

Thus, in view of the condition of exchange of inland technical knowledge, pure payment and receipts can be estimated.

The necessity of Technology Transfer:

Developing a reasonably technical basis in a semi-developed country is a complex and long-term process. A country with strong domestic capability can also get great benefits from the international transformation of technology. With the technical knowledge gained from other countries, a country can provide adequate speed for research and development activities.
Technology Transfer
Technology Transfer

The technical basis of semi-developed countries relative to developed countries has been quite backward. Dedicar writes that - The knowledge of scientific research of the world is confined to only 30 developed countries, then the remaining 5 percent of the world's scientific research is extended to 100 other countries, which comprise two-thirds of the world population.

In order to expedite the process of economic development, developing countries have understood the technology transfer to be very important and are also proactive in this direction.

Choice of Appropriate Technology:

The process of modernization is accomplished by virtually increasing urbanization, higher education, rising social and regional dynamism and lose the sense of antiquity.

The famous scientist White Head has had years of relevant commentary and serious warnings in his book Science in the Modern World that Western India is now suffering the consequences of the narrow ethical outlook for the last three generations. The anticipation of the worthlessness of heavy objects in the West led to a feeling of disrespect towards natural or artistic beauty.

At the time when the process of urbanization was accelerating in the West and when it was necessary to prioritize the idea of ​​providing the beauty of the new physical environment, then the principle of 'utilitarianism' or utility, the irrelevance of beauty, was at the peak of its popularity. In industrial most of the most advanced countries, art was considered extremely despicable.

J. D. Bernal clearly stated in his eminent Grant Social Function of Science that the culture cannot be relevant to the modern era, without a section of science. To meet today's needs, science must also be linked to culture. This will only be possible when there is a revolution in the internal form of science. In fact, during the era of hypnotizing the nineteenth-century science, the twentieth century was an age of dissolution of science.

But the solution to the imperfections of the science age is not in the interest of turning away from the scientific era by turning away from science. These imperfections can be overcome by scientific analysis only. One value is the value of chemistry which can save mankind from the incompleteness and misuse of science.

It is also necessary to consider the cultural consequences of the process of authorization associated with scientific development. We should also not forget that countries which did not enter the industrial and scientific era completely, there is a culture of culture and religion.

The two are integral to each other and are dependent on each other. A form of religion is related to the devotion that we have to sacrifice, the second form is linked to humanistic values ​​which we have to preserve.

As a result of scientific era processes, another side is exposed. When the old faiths are fast breaking down and new beliefs are not created in the transition era, the situation of worthlessness or moral anarchy arises.

Prof. Puran Chandra Joshi writes in the 'cultural dimension of transformation and development' that the masses have all the forms of nature and the values ​​and beliefs of the human and human beings and all types of human beings with all the needs of life. Creates an emotional and imaginary world of meaning.

Through this imaginary or emotional world, he tries to understand the real world. These values, assumptions, and meanings have twin significance.

In fact, there are such periods in the life of the nation when old rituals of public life change then public morality becomes disinterested, religious belief stops, the tradition of tradition breaks, but the spread of modern knowledge is incomplete and immature The civil rights of the community are not yet reinforced or restricted to narrow scope.

In the eyes of the citizens, the blurry and vague form of the country appears. He does not see the country as the holy land where he lives, because the land now sees them as a lifeless soil sloping, nor do they respect the customs and rituals of their ancestors whom they now Independence takes away the snatching stance or they believe in religion because their faith has vanished, nor do they believe in those laws which they themselves have not created.

Neither do they believe in legislators who have been abused? People of the country have become slaves of their senses in these situations and become victims of narrow and discursive selfishness. They have become free from prejudices without accepting the dominion of knowledge. Neither is it the innate country pride of a monarchical system, nor the idea of ​​a democratic system inspired by the love of the country. In confusion and anguish, they have stayed between them.

In fact, knowledge can be borrowed from others but not nature. In the imitation period of our teaching, we can not see the difference in the necessities and non-essentials, we do not understand what can be transferred from one country to another and what can not be done.

Just like the people of the primitive world are hypnotized by seeing all objects of the outer world and do not have any sense of beneficial harmful elements. We try to reconcile everyone, fearing that something valuable is missing.

But where our lips do not distinguish between food and inedible, our organism structure receives it only, which is beneficial and abandons unhealthy tax elements.

With the nature of losing its nature or taking a nirvivek, any living structure can not develop in a strong and healthy form. It is being seen that the risk of modernization of copying and distorted forms of value and culture, knowledge and science are increasing today.

In this context, the following statement of Jawaharlal Nehru is more relevant today - he said that the kind of modern culture that was born in the West first and especially the metropolitan life system which is the main responsibility of this civilization is such a shaky Gives birth to a society which is gradually losing its self-esteem.

There is progress in many areas of life but life is losing its power. He is becoming more artificial and gradually life disappears. To keep it alive, more and more stimulants are needed.

Various medicines, for the continuation of sleep medicine for medicines, or other natural activities, such foods or drinks which by spinning the tongue, making the entire body debilitatingly, produce momentary stimuli, or special methods that give us Generates temporary cognition of pleasure and adventure, but the response that arises after such stimulus is very empty emptiness or sense of nonsense Switch to person also drown.

Despite all the wonderful forms and real achievements, there is something in our modern civilization that makes it fake and gimmicky. The advertiser is one of the most important symbols of our era, which constantly understands our success in forgiving us, stopping the forces of our perceptions and motivating us to buy various types of harmful and non-essential items.

It is clear that it is very dangerous and harmful to define modernization as the definition of complete formation Westernization. In order to enter the modern era, developing countries have to learn from westernization in terms of modernization of their interests in modernization, it is also to criticize and, with this sophisticated discretion, such intermediate techniques of development will be created which can be made better and working...


Problems Faced by Developing Countries In Technology Transfer:

Developing countries often have difficulty in the use of technology used by developed countries.

The reasons for this are:

(i) The technology used by developed countries does not come true on the means of developing countries.

(ii) There is not a sufficiently skilled human resource and social organization in developing countries.

(iii) Developing countries can not utilize the technical skills of developed countries due to their internal structure constraints and market constraints, which produce huge scale.

(iv) The problem of production adjustment exists in front of developing countries. The format of domestic demand in developing countries often has adverse effects on the structure of industrial production and costs due to lower levels of income.

(v) There is a shortage of foreign exchange and administrative competencies in front of developing countries.

(vi) Developing countries have to face the excess of investment costs and technology installation costs while implementing technology in developing countries.

When developing countries apply the developing countries to their country, there are two options in front of them - the first is that they adopt the design and production system of production to take some mute adjustments, from which the production and relative fulfillment of their country's requirement Or optionally make major adjustments in product design and production systems from which developing countries It is possible to produce in accordance with ecology.

In both cases, the cost of imposing the imported technology in the home country will have to be borne. Under these, the first election will have such appropriation costs which will lead to the development of human resources and production environments. Under the second option, the costs related to the adoption of production design and production system will be included.

(vii) As a result of protective policies, the technical handling experience is interrupted. Generally, the developing country has to develop such domestic industries for the development of its internal economy, which creates employment.

Use of domestic resources and saving of foreign currency. For this, he has to depend on the protection policy. But this protection policy interferes with a technical transfer in many ways.

When the use of foreign technology is not possible for the developing country in the absence of capital, it is based on conventional techniques and carries the compulsion to produce the goods at high costs and gradually far behind developed countries goes.

(viii) In addition to economic parties, developing countries are also influenced by non-financial factors like many social-cultural environments and approaches. The social structure of a country, the cultural level, and the behavioral specifications give information about the conditions of the society to adopt, absorb and utilize the technology.

Social-cultural environments and approach-related components have a significant impact on the production of specific techniques, along with productive and mechanical designing, relative efficiency and support. An example of a country like Japan is important where the positive views, wishes, skills, and motivations of the society made possible the technological transformation by adopting new equipment and methods. The same traditional values ​​and cultural specialties were also maintained.

(ix) In developing countries, the untested use of state-of-the-art technology leads to difficulties. If the developing country is hasty in adopting the technology of the advanced country, the process of growth begins to be blocked rather than accelerated.

The reason for this is that they lack the infrastructure and infrastructure that the developed country has developed in terms of its development. Therefore, in such a situation, the developing country should use effective and better technology which is growing in the country. According to technical skills and managerial structure.

Intermediate Technology:

E. F. Schumacher recommended intermediate technology for the development of the rural areas of the economy which proved to be better and effective. Schumacher recommends developing world-renowned masterminds, Small is Beautiful and A Guide for the Perplexed to develop developing countries on self resources and techniques.

Schumacher explained that intermediate techniques are superior to conventional techniques in increasing productivity of less developed countries. It is easier and cheaper than expensive and complex capitalization techniques. The technology used locally for less developed countries proves to be better and better.

Such efforts should be made to generate inspiration and facilities to develop effective technology at the national level. For this, it has to be specific to the areas, industries, and activities where technological improvements increase productivity, get more employment opportunities, utilize domestic cheap resources and save foreign capital. Thus, the idea of ​​intermediate technology is to develop affordable domestic labor-intensive short-scale technology.

Some economists think that modern intermediate techniques are difficult to develop without the use of improved western techniques and methods. Conventional intermediate techniques are often expensive and inadequate, then intermediate technology is not enough for the production of all types of items. Often this kind of technique is uncertain and risky even though its cost is low, but due to low productivity, the actual cost becomes very high.

According to Schumacher, the economic criteria which measure success on the basis of production or income and do not keep in mind the number of jobs or jobs in the country, are inadequate and do a one-sided and statistical evaluation of the problem of development.

The practical vision of development relates to the needs and responses of the people, their first requirement is that they do something that they get from the award, even if it is short.

This will happen, while they will experience that they have some time and labor worth so that they are enthusiastic to do more meaningful work. So it becomes more important that every person produces something or something.

Schumacher expressed his main work in front of developing countries with the following four concepts:

(i) First- Places of work should be made in those areas where the people are residing.

(ii) Second- The site of work is quite cheap which means that they should be made in much more quantity and for which there is no need for much more capital formation and imports.

(iii) Third- The methods of production are relatively simple, in order to minimize the demand for high efficiency.

(iv) Fourth- Production should be done primarily from local substances, which can be used for local consumption.

The above four situations can only be possible if the development is based on regional law and continuous efforts should be made in this direction that a better and effective technique is developed.

The regional law of development is possible for the increase in the number of small and medium-sized towns which can reduce the unemployment of the wider population and the constant migration towards the cities and metropolitan cities.

According to Schumacher, the regional or zonal method of development depends primarily on the availability of better technology and its implementation. Keeping in view the rarity of capital, the technique should not be more capital intensive nor should these countries adopt the traditional technique, which means these countries should be dependent on intermediate technology.

According to Schumacher, if the level of technique is explained on the basis of cost per device, then it can be addressed by the prevailing technique itself. For example, this is a dollar-1 technique, whereas in developed countries this dollar-1000 technique can be called.

Now technology will be needed which is between $ - 1 technology and $ - 1000 technology; Like this, we can say $ 100 technique. This type of intermediate technique can be more productive than conventional technology, provided it is much cheaper than the sophisticated capital intensive technique being adopted in modern industries.

Such techniques are cheap and small, which provide a more uniform distribution of capital appropriation, responding to local needs and resources, and providing employment facilities where people are residing. It is helpful to increase the use of local capital, efficiency, raw materials and reduce the import of resources.

Technology Transfer in Underdeveloped Countries:

Technology transfer refers to the transmission of technical knowledge from one country to another, which is either through fixed government policy or private channels of communication. Agencies involved in the transfer of technology; Government or commercial undertakings; Such as multinational corporations, private agencies, or international non-profit organizations.

Transferring technology to semi-developed countries gives rise to many problems and difficulties, the main of which is the following:

(i) Primary Environment :

Modern technology requires a special type of social environment under which modern technology can be used, but in semi-developed countries, individuals are not excited about the introduction of new technology transfer.

Traditional methods of production in conventional agricultural major economies are prevalent and farmers do not want to use high-based put energy technology as an alternative to this low-intensity heat. In this way, for the transformation of new technology in the country, basic change is required in the traditional and cultural framework.

(ii) The dearth of Basic Facilities:

The new technology is expensive and this sponsorship requires modern equipment and specialized facilities. The efficiency of absorbing modern technology will only be achieved through a specific degree of skill and training, whereas educated people and technical trained persons will be available in that country. Due to the lack of capital in semi-developed countries and lack of training and skillful labor force, technical handling conflicts with the obstacles.

(iii) Diversion Condition:

The situation of accepting new knowledge in each country is different because of the differences in social structure, political condition, economic environment, level of education and levels of skill, and hence the need for different methods of transshipment are felt. In the developed country, the semi-developed countries often face constraints in adjusting the prevailing technology, because the level of education, available capital, knowledge, and training levels vary.

Therefore, importing the technology available in developed countries is not a solution to the problem, but in semi-developed countries, how to optimize it, is an important aspect? The techniques which are adapted for agricultural production in developed countries will not be able to successfully comply in semi-developed countries.

If the conditions of land and climate vary. If such a difference exists then semi-developed countries will have to make better arrangements of various types of chemical fertilizers, pesticides, and irrigation to produce and modify the system of the crop cycle. Thus, the developed techniques in advanced countries do not conform to the needs and expectations of semi-developed countries.


(iv) Limitations of Demand and Supply:

In the initial stage of development, semi-developed countries depend on the services of foreign experts, many problems arise. In most countries, there is no trained labor available, which is being experienced in the production process, ie lack of trained engineer, scientific, manager, and specialized manpower.

The defects which are experienced while paying attention to the demand side are as follows:

(i) If the number of foreign experts exceeds one limit then the youth trained in the country can be deprived of employment opportunities because often such thinking exists that foreigners are superior to efficiency.

(ii) Foreign experts have to provide all kinds of additional facilities in the country, which is borne by the country.

(iii) In the developed countries, the wage rates are much higher compared to the semi-developed countries, in which the wages offered to the foreign specialist are significantly higher relative to the wages given at the domestic level.

(v) Lack of Enterprise:

Educating the community is very important for the use of modern technology, but there is a lack of experts who provide training in semi-developed countries.

In order to overcome this shortcoming, either the experts are invited from abroad, or the domestic nationals have to send them to get training abroad.

(vi) The problem of technology:

To pay for the creation of technology and the import of industrial innovation. With this, from developed countries, towards semi-developed countries

It is necessary to redress the problems that come in the transfer of technology that:

(a) Internationally, there are rules that transfer the technology keeping in view the requirements and conditions of the developing country.

(b) It is necessary to use modern technology and to adopt such technology which is effective for developing countries and to adapt to economic, social and ecological conditions of these countries.

It is necessary that the flow of research and development programs from developing countries to developing countries continues. Such efforts should also be made, which would make it possible to bring in significant improvements in domestic conventional techniques.

In the context of trademark and brand name, the ministry has proposed to limit the payment of royalty payments to one percent of sales and two percent exports. Since liberalizing the Foreign Direct Investment (FDI) policy by the government in 2009, foreign companies have increased the flow of such funds. In this, the limit of payment was abolished and companies were given permission to pay royalties to companies that gave them technology assistance without the approval of the Indian companies.

Payment of royalties to any foreign entity is used for Technology Transfer, brand or trademark. Proposing such curb, the Ministry has argued that this will increase the profits of domestic companies, especially in the auto sector. Along with this, the fall in foreign exchange reserves will be prevented, the interests of minority shareholders can be protected and the government's revenue will be increased.

Prior to 2009, the royalty payment was within the scope of regulation. In relation to technology transfer, this limit was limited to eight percent of exports and five percent domestic sales. In relation to the use of a trademark or brand name, the limit was limited to two percent exports and one percent domestic sales.

But at this time, other communications companies give royalty equal to 15 US dollars per mobile line. Likewise, the country's largest car maker is giving royalty equal to 5.5 percent of its net sales income to its parent Japanese company.   ** Technology Transfer **