Technology Transfer to the China M/C Tool Industry: The Need for a Technology Valuation Model (original) (raw)
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International Journal of Operations & Production Management, 1999
The value of technology and the appropriate form of transfer arrangement are important questions to be resolved when transferring technology between Western manufacturing firms and partners in industrialising and developing countries. This article reports on surveys carried out in the machine tool industries in the UK and China to establish the differences and similarities between owners and acquirers of technology regarding the relative importance of the factors they evaluate, and the assessments they make, when considering a technology transfer. It also outlines the development of a framework for technology valuation. The survey results indicate that the value of product technology is related to superior technical performance, especially on reliability and functionality, and the prospects of premium prices and increased sales of the technology transfer based machine tools. Access to markets is the main objective of UK companies, while Chinese companies are concerned about improving their technological capability. There are significant risks, especially related to performance in the market, and while owners and acquirers have benefited in the short term, the long term collaboration required for strategic benefits has been difficult to achieve because of the different priorities of the owners and the acquirers.
1997
Previous research into the transfer of technology between the UK and China has shown that the value of technology is a crucial question in most transfer negotiations and collaboration arrangements. To assist with negotiations a technology valuation model is being developed through a project supported by the UK Engineering and Physical Sciences Research Council. The main project focus is on technology transfer from the UK to China. Empirical data are being gathered from the machine tool industry to identify the factors that suppliers and acquirers consider when valuing transferred technology. The aspect of the model examined in this paper is how to assess the added value and secondary gain that can be captured both by technology suppliers and acquirers as a result of introducing more advanced machine tool technologies into Chinese industrial production.
International Manufacturing Strategies and the Transfer of Technology
Technology is at the core of both products and processes, so to improve competitiveness and access markets it must be acquired, absorbed and developed. Moreover, as manufacturing has become more globalised, technology is also increasingly being transferred as part of collaborations between companies and has therefore effectively become a commodity in itself. It can be sold for a direct financial return or exchanged for a share in the local market, for example when being transferred through foreign direct investment from developed to the newly developing economies. This paper describes the concept of a "technology valuation and collaboration" model that has been developed using empirical data gathered from along the UK-China value chain for machine tool technology. It can be used to assist the negotiations and ongoing technology transfer arrangements of manufacturing companies that are supplying or acquiring technology.
Sixth International Conference on Manufacturing Engineering: Manufacturing; a Global Perspective; Proceedings, The, 1995
Since opening to the outside world in the late 1970s China has become one of the world's largest markets for manufacturing technology. Technology transfer is therefore becoming one of the most effective routes for gaining access to the Chinese market. China's policy of targeting specific sectors, coupled with its encouragement of foreign investment and technology inputs, have shaped the development and structure of priority industries. As a result, there are now wide differences between enterprises in China in terms of their ...
As manufacturing becomes increasingly globalized the value of technology has become a crucial question when being transferred from suppliers to acquirers. Under many forms of transfer arrangement the value of technology cannot be considered in isolation from the nature of the arrangement itself which could range from one-off transactions to an equity joint venture or other forms of close partnership. The distribution of costs, risks and benefits varies substantially between types of arrangement as well as the specifics of the agreement. Previous research by the authors into the transfer of technology between the UK and China has revealed that the issue of reaching mutual agreement on the value of technology was a major handicap to many transfer negotiations. This paper describes the framework and progress with development of a technology valuation model. The main focus of the research is on machine tool technology being transferred from the UK to China. The results will assist companies in developing their technology transfer and global manufacturing strategies. The overall aim of the research is to develop a model using empirical data gathered from both countries to identify the factors that both technology suppliers and acquirers consider when valuing transferred technology. The model will provide a framework for assessing the components of value, their relative weights, the balance between them and how they are related to the form of collaboration between the supplier and acquirer.
Transfer of Manufacturing Technology to China: Supplier Perceptions & Acquirer Expectations
Results of complementary surveys of foreign and Chinese engineering enterprises with respect to their objectives and expectations regarding technology transfer into China show that the major strategic objective of foreign enterprises, to gain access to the Chinese market, fits well with Chinese enterprises' main objective of improving domestic competitiveness but less well with that of accessing world markets through technology transfer. Foreign firms rate highly the capability of Chinese enterprises to learn new technologies but they are much less sanguine than Chinese enterprises about the managerial capabilities, level of technological development and equipment quality of the latter and regard the inadequate legal framework as a significant obstacle.
The Characteristics of Technology Transfer into the Chinese Steel Industry and the Valuation Problem
1998
This paper describes some empirical studies that have been carried out to investigate t l~e characteristics of the Chinese steel industry in terms of technological renovation and it's relationship \xitli the more general question of technology tiansfer to China. Consideration is given to the question of tecliiiolog) valuation that is an issue when technology is being transferred between owners and acquirers. Comparisons are made between considerations of value in steel making and the results of earlier investigations in the machine tool sector.
Transferring manufacturing technology to China: supplier perceptions and acquirer expectations
Integrated Manufacturing Systems, 1997
Aston Business School Research Institute is the administrative centre for all research activities at Aston Business SchooL The School comprises more than 70 academic staff organised into thematic research groups along with a Doctoral Programme of more than 50 research students. Research is carried out in all of the major areas of business studies and a number of specialist fields. For further information contact: Abstract Transferring Manufacturing Technology to China: Supplier Perceptions & Acquirer Expectations Results of complementary surveys of foreign and Chinese manufacturing enterprises with respect to their objectives and expectations regarding technology transfer into China show that the major strategic objective of foreign enterprises, to gain access to the Chinese market, fits well with Chinese enterprises' main objective of improving domestic competitiveness but less well with that of accessing world markets through technology transfer. Foreign firms rate highly the capability of Chinese enterprises to learn new technologies and also . find the Chinese macro environment for business favourable but they are much less sanguine than Chinese enterprises about the managerial capabilities, level of technological development and equipment quality of the latter and regard the inadequate legal framework as a significant obstacle.
The study, completed for the World Bank in 1988, studies the impact of liberalization of imports, on competition in the Indian Machine tools industry. At the time, Computerized Numerically Controlled Machine Tools were broadly adopted and impacted the competitive dynamics in the industry. The study investigated how local companies coped with the competition from overseas producers by adapting to local factor endowments and market needs.