. Overcoming Barriers to Effective Technology Transfer in Iran Automotive Industries
M.SAMIEI NASR
Engineering Faculty
Islamic Azad University (Tehran, South Branch)
165 Gharany St. The Deputy of Research and Planning, Tehran
IRAN
Abstract: Automotive industry plays an important role in the economy of the countries, because they have quite close relations with the other industrial fields. This is why the developing countries, which tend to grow rapidly through industrialization tend to develop this industry so that they can decrease their distances with the developed countries. Therefore, technology transfer as a means to obtain the objectives of economical reconstruction and reducing the technological gap turns out to be quite inevitable. Anyway, such a transfer should take place in a way that can cause the transfer of technology and absorption of the technical knowledge and industrial thought to be grown in the society. It must also strengthen the ability of the society to obtain the new techniques (New generation of technology) and ultimately lead to an Effective Technology Transfer.
In this regard technology transfer has long been begun in this country but because of its complexities and specialties of this process as well as many other external and internal factors, Iran automotive industry could never grasp a good place in the world markets. Since an appropriate technology transfer is one of the ways to upgrade the technology level in this industry it is important to study it from different views to find out how its mechanism can be improved.
The importance of such researches will be clearer when we know that Iran does not have much time left to join the World Trade Organization (WTO), and this increases the responsibility of this industry to solve the present problems and to reach an industrial independence. In this research an exhaustive literature review on case studies related to technology transfer especially in automotive industries were carried out. Then, to collect more information, a few newly industrialized countries were considered in comparative study. Due to the theoretical findings, major hypothesis were made and they were assessed in a field study. Finally, according to what have been found out of the hypothesis, the main barriers were analyzed and guidelines and general recommendations were presented.
Key-Words: Technology, Technology Transfer, Auto Industries, Effective Technology Transfer, Technology Transfer Contracts, Technology Transfer Barriers, Technology Transfer in Iran.
1 Introduction
We are observing the dominant role of technology in every aspect of life, economy and industry increasingly rests on technology and effective Management of technology development to such an extent that technology is widely regarded as the key factor of industrial development.
In general, one of the most fundamental problems of the developing countries and particularly in case of Iran is the technological gap with the developed countries. The technological gap is considered to be a factor of superiority of the industrial countries to the developing countries. Some of such developed countries are even able to influence the economical and political situations of the countries, which are technology recipient.
In the present world, competition among countries is defined mainly in terms of technology; and in the future, an industry's competitiveness would increasingly depend on its capacity to develop its technological potentials.
Today the developing countries have directed their social, political and especially their economical tendency towards technological power. They try to transfer technology from advanced countries.
Technology transfer is perhaps among the most widely used terms in both the Developing and Developed Countries. As far as economic reconstruction or appropriate economic development is concerned, technology transfer as a necessary, if not a sufficient, looks inevitable. Technology transfer, as a give and-take process, is fully actualized where all necessary elements are transferred and optimally utilized. If the procedures of such a transfer takes place properly and exactly according to the scientific principles, it can play a very significant role to solve the economical crisis and upgrade the standards of living in these countries.
Therefore, technology transfer doesn't mean merely transporting a machine from one place to another place. But the transfer to be useful must be accompanied by sensible and rational selection, assimilation and absorption on the part of recipients. Further, the processes should be extended to the creation of indigenous technologies. That means, technology transfer is not quite useful unless it helps the recipient to promote the next generation of technology.
In this regard, Technology transfer has been long common in different industries in Iran, particularly automobile industry. But due to the complexity and specialty of this category and lack of a management acquainted with the various stages of technology transfer, a center for technology transfer, as well as observation and enough control to carry out the contracts, proper research budget to establish research and development centers in the country, a close relationship between the universities and scientific centers with the automotive industries so as to adapt and develop the imported technology, an appropriate transfer of technology has not practically taken place but has only led up to purchase the products of technology. In this case, the technology transfer has not caused the industrial thought of the country to grow. It did not cause the new techniques to be obtained either. This is why since about 1957 when the first factory of automobile assembly was established in Iran, We could not reach an acceptable place in the world market, though we have relatively and advanced quantitatively in the manufacturing and assembling in this industry.
Today, Automotive industries have covered a great part of employment (a problem Iran is presently involved in), income and industrial added value in the advanced and newly industrialized countries; it includes a considerable part in the national gross production in these countries as well. Therefore in regard to the effective role of this industry in the economical growth of a country, it is very important to realize the impediments that do not allow this industry to be independent, and the ways to improve its technological level as well.
2 Research Approach
Figure 1 illustrates the approach that this reserch carried out. The research started with exhustive literature review, including a theoretical framework related to component of technology, methods of technology transfer, process and appropriate technology transfer particulary for Iran situation, technology transfer contracts in Iran automotive indusrty , Then, to collect more information, a few countries will be considered in a compartive study.
The research countinued with gathering emperical materials which were a series of surveys (distribution of questionnairs, interviews, personal observations) to obtain data about technology transfer in Iran Automotive industry and the reasons why this Industry has not been developed and could not graps a suitable place in the world market.
Fig 1. Research Approach
The finding of this phase (empirical) were combined with the theoretical framework in order to identify the major obsticles and suggested possible recommendations to overcome these barriers for effective technology transfer to Iran Automotive Industries (Fig. 2).
Fig. 2 Conceptual Model
3 Research Methodology
This research has begun with a comprehensive literature review, which includes, a study of available or library documents, various computer websites, questionnaires, and personal observations and interviews. In conducting this research, some important places such as Automobile Research Centers, universities, Industry Development Organization, The Center of Industrial and scientific Research Project of Iran, the Preserving Center of the Contracts of Technology Transfer in Iran Auto. Industry, the manufacturing and scientific centers of automotive industries of the whole country and their parts main factories were visited. Since the number of the senior and operative managers of Automobile Industries of Iran is more than 30, a normal curve can be used to analyze the obtained information. In this research Likert Scale which rather characterizes more preciseness than other scales was used to analyze the obtained data.
To determine the questions of the research some theoretical studies will be carried out in order to identify the concepts of technology and technology transfer and the libarary section will be started. Then some theoretical studies will be carried out about automotive industries of Iran and some newly industrialized countries. Finally, the questions will be planned on the basis of personal experiences and observations.
A field research will be also conducted to approve the hypotheses of the research. To be able to use the obtained data some statistical methods will be employed so as to improve the validity and reliability of the research that is, for each hypothesis first the obtained results will be collected and then the necessary parameters will be calculated on the basis of Likert scale.
The statistical data obtained by the research on the first stage of the statistical analysis was normally shown in a frequency table. In order to know the parametrs of the samples a Z test will be used to show the significance of the hypotheses.
Finally, based on the obtained information some solutions were suggested to solve the barriers to effective technology transfer in Iran Auto. industry.
The most significant features of the effective technology transfer conceptual model included the classification of research barriers into two controllable(such as increasing the research budget, enhancing the relationship between industry and universities , … ) and as well as planning for reasonable treatment of uncontrollable barriers.
4 Conclusion
After analyzing the main barriers of unsuccessful technology transfer in Iran automotive industries by gathering relevant information from research hypothesis, the research findings are as follows:
1-Due to the scientific potentiality available in the country and in case of an optimal use of all potential and practical abilities of the human resources, it seems there are specialists who are skilled enough to transfer technology and use it effectively in the country.
2-Because not enough attention is paid to the macro-policies of research in the country and also because of the lack of research budget in universities and industry, there is no close relation between these two important centers, which can cause industrial independence. In other words, the industrial sections of the country do not tend to make use of the academic potentials.
3-Because of lack of Technology Transfer Center on the country and the effect of internal and external political problems, the automotive industries of the country had more a tendency toward technology transfer rather than obtaining a type of technology appropriate to the economical, cultural and social conditions of the country (effective technology transfer).
4-Because of the complexity of the contracts and lacking specialized personnel to be well informed about the details of the contracts, and also lack of a center to observe and control the fulfillment of the contracts continuously, they have often been made and implemented ineffectively.
5-Because a sufficient budget is not allocated for the establishment of research and development centers in the country in general and in the automotive industries in particular, the foundation of the research and development has remained weak and was a major barrier to effective technology transfer.
5 Acknowledgement
The Author wish to express his thankfulness to the Dr. Gholamreza Goudarzy a member of faculty of Islamic Studies and Management of “Imam Sadiq” university for his contribution to this research.
References:
[1] SAP.J.Hung., The Role of Technology in National Development, Experience of Korea, Science and Research Magazine, Vol.5, 1990.
[2] F. Farmand, The Role Of Industrial Research Base In Newly Industrializing Countries. Lessons From Iran (Technology Transfer), Ph.D dissertation, New York University, 1992.
[3] S. Browne, Technology-Transfer-Developing Countries, Earthscam publication, 2002.
[4] M.A Senesac, A Program Design Model For Effective Technology Transfer, Proceedings Of The Technology Society International Symposium, Indianapolis, IN : The Society, 1983, pp. 13-19.
[5] Richard A. Bendis and Burke, Overcoming Barriers to Technology Transfer and Business Commercialisation in Central and Eastern Europe, IOS Press 2002.
[6] Chico, V.Leon, Technology Transfer mechanisms in developing Countries: The Technonet, Asia, Experience Information, Communications and Technology Transfer, FID Publication, North Holland, 1991.
[7] Hong, Jon Chao, Technology Transfer and Human Resource Development, Industrial and Commercial Training, Vol.26, No.11, 1994.
[8] H. Mehdyan, Technology Strategy for Developing Countries, Iran-Tehran, Technology Research Center, 2001, pp.45-64.
[9] R. Gross, International Technology Transfer in Services, Journal of International Business Studies, Fourth Quarter 1996.
[10] Lee, Young S., Technology Transfer and the Research University: A Search For the Boundaries of University Industry Collabortion, Research Policy, Vol.25, No.6, Sep 1996.
[11] Report by the UNCTAD secretariat, A Strategy for the Technological Transformation of Developing Countries, United Nations Conference on Trade and Development ,New York: United Nation, 1985, p. 23.
[12] J. Foley, Technology Transfer from University to Industry, Communications of the ACM, Vol.39, No.9, Sep 1996.