WHY ARE PARTNERSHIPS KEY TO SPREADING TECHNOLOGY

Before addressing the question of partnerships, it is important to make the distinction between technology transfer and technology sharing Technology sharing is often confused with technology transfer and the two terms are used interchangeably technology transfer as the process by which an innovator, who is an inventor, or a firm that is the developer of a new technology, shares the technology with another person or business, who is the transferee, for the purpose of its commercialization Technology sharing is basically a form of technology transfer that occurs when two or more firms/inventors in the same geographic area are involved in the development of a new technology In contrast, technology sharing is when two or more partners from different geographic areas collaborate on the development of a new technology The benefits of technology transfer and technology sharing can be classified into two broad categories The first is the technology itself The transfer of a particular technology can bring about benefits for the economy by increasing a country's competitiveness in the world market The second category of benefits is derived from the creation of new relationships Technology transfer and technology sharing can create new relationships between the partners In addition, the exchange of information and ideas can help firms gain knowledge they did not previously have Why are partnerships key to spreading technology? The answer lies in the special nature of technology Technological innovation is not an exogenous process Innovation is not produced by a single inventor or firm, but is a social process that takes place as a result of the interaction between scientists, engineers, entrepreneurs, and consumers The process of innovation usually involves several people It is not always easy for one individual or group to understand a complex technology Therefore, to exploit technological innovation, firms need to share knowledge and technological expertise with their partners In addition, the value of technology is not just the product itself, but its use Firms can gain a competitive advantage in the market by making the product more attractive to customers Partnerships help firms understand the market, and they can make the product more attractive or cost effective The key to spreading technology is to have a group of firms/partners who are willing to cooperate with each other The partners need to exchange both knowledge and information The willingness to exchange is crucial In a technology partnership, the firms/partners will not only share necessary information, but also information that might be valuable to the other partner The exchange of valuable information indicates the partners