How Universities and Companies Benefit From Technology Transfer
The benefits of technology transfer are innumerable. For universities, the process of transferring research to companies can increase the research output of the university, increase faculty recruitment, generate revenue for research activities, and boost the institution’s reputation. It also helps companies gain access to technological advances developed by leading research institutes, as well as benefit from the expertise of world-class scientists. This is a win-win situation for universities, companies, and the wider economy.
The most common method of technology transfer is through licensing agreements. The university, on the other hand, is prohibited from transferring its own intellectual property (IP) to another firm. This method is known as market pull, and is most often the result of the monetary benefits of technology transfer for both parties. Technology spillover, meanwhile, occurs when new advances in one field stimulate progress in a different field. This phenomenon also occurs when ideas spill over from one subject to another or countries.
Besides fostering innovation, technology transfer also helps to boost national and regional economies, increase employment, and improve health and environment. By transferring technology, U.S. industry benefits by delivering more efficient products and services to the market. It also helps small companies compete with larger companies by sharing technologies. The benefits of technology transfer are numerous and often exceed the costs of patenting and licensing. So, technology transfer is important for the U.S. economy.
The process of technology transfer is complex. It involves the transfer of intellectual property from research labs to the commercial world. The Bayh-Dole Act passed in 1980, which facilitated the flow of government-funded inventions to the private sector. Until then, the federal government held title to approximately 28,000 patents, and only 5 percent of them were licensed to industry for commercial products. Technology transfer also enabled universities to retain the rights to inventions developed under government funding, and encouraged collaboration between universities and companies.
Technology transfer benefits the university and society. While the social value of innovations is hard to measure, economic benefits are easier to identify. Ten principles for assessing social value of new technologies can help guide the process of technology transfer. These principles can be applied to three distinct markets: universities, businesses, and society. This helps in fostering innovation and generating more valuable products and services. In addition to transferring intellectual property, technology transfer helps universities reap profits through patents and prospective endowments.
The benefits of technology transfer to countries are often accompanied by negative effects. While trade can be mutually beneficial, it can also make a country dependent on foreign firms and a source of international equity. It can also create enclave economies, resulting in higher inequality and lower wages. For many people, however, it is an essential tool to increase economic development. The question is, how much does technology transfer benefit the developing country?
The benefits of technology transfer extend to both companies and the general public. Research joint ventures are a good example. They combine the research efforts of multiple companies, which reduces the burden on any individual firm. A research joint venture also allows companies to keep pace with the rapid advances in technology, and can even set critical technical standards in a particular industry. For these reasons, technology transfer is important to the future of science and the society. With the help of technology, innovations can lead to better lives for people everywhere.