Day 48 – Q 2. What do you understand by the term ‘transfer of technology’? Why is it important? Illustrate with the help of suitable examples.

  • IASbaba
  • August 4, 2020
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GS 3, Sci & Technology, TLP-UPSC Mains Answer Writing
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2. What do you understand by the term ‘transfer of technology’? Why is it important? Illustrate with the help of suitable examples.  

ट्रांसफर ऑफ टेक्नोलॉजीशब्द से आप क्या समझते हैं? यह महत्वपूर्ण क्यों है? उपयुक्त उदाहरणों की सहायता से चित्रण करें।

Demand of the question:

It expects students to write down what they understand by the term ‘transfer of technology’. It also expects students to write about the importance of transfer of technology with relevant examples.


Transfer of technology is a process of transferring technology (innovations, knowledge and techniques) from one organisation or country to another organisation or country through formal or informal channels. Formal channels include FDI, licensing, trade, foreign patenting etc. whereas informal channels include imitation and counterfeiting.


Transfer of technology occurs along various axes: among universities, from universities to businesses (and vice versa), from large businesses to smaller ones (and vice versa), from governments to businesses (and vice versa), across geopolitical borders, both formally and informally, and both openly and surreptitiously.

Transfer of technology includes:

  • Identifying new Technologies.
  • Protecting Technologies Through Patents and copyrights.
  • Forming and transferring Development and commercialization strategies such as marketing and licensing to existing private sector companies or creating new start up companies based on Technology.
  • For instance, Rafael deal with France involves Transfer of Technology for manufacturing Medium Multirole Combat Aircrafts, which India lacks currently.

Importance of Transfer of Technology:

  • Exploration of new markets – Markets of developed countries are  saturated. Hence, technology transfer to new emerging markets in developing countries  will help to address the socio-economic and political problems over there. 
  • Dealing with global common threats like COVID-19, requires all countries to be equipped technologically. Here technology transfer can be an important tool. 
  • Financial Benefits for countries who can’t afford to buy new equipment every time they need to upgrade e.g. military equipment which needs regular up gradation.
  • India demands environmentally friendly technology to ensure low-emission economic development from western world under Paris climate change to check climate change. So technology transfer through alliances such as International solar alliance may help to tackle global common threats like climate change.
  • To meet social-economic goals: India’s self sufficiency in food can be attributed to the transfer of valuable technology of High yielding varieties seeds and good agronomic practices from USA to India. Technology certainly saved country which was on the brink of famine.
  • To meet global objectives: It is the transfer of renewable energy technology from developed nations to developing world that will do common good in the wake of global climate change phenomenon.
  • It will help to reduce unnecessary expenses. Transfer of advanced military technology would avoid any kind of dependency over foreign countries. A technology once known would benefit in saving foreign exchange kitty.
  • To safeguard the borders: To make anti-tank guided missiles, Kalyani Rafael Advanced Systems (KRAS), a joint venture between Kalyani Strategic Systems Ltd. and Rafael Advanced Defence Systems Ltd. of Israel.
  • In addition, technology transfer ensures that the interests and rights of the university in the intellectual property are protected. The university is able to retain the intellectual property rights of the technology and issue a license for the conditional use of the technology.
  • The ultimate beneficiary of technology transfer is the public, who benefits from both the products that reach the market and the jobs resulting from the development, manufacturing, and sale of products.
  • Technology transfer works to complement academic research by pushing innovations out the lab door and into the hands of industry partners who will develop them into products for the benefit of the general public.

However, transfer of technology poses some challenges too:

  • It kills the innovative spirit of the researcher as ready to implement technology is handed over.
  • It also puts the country or the organisation in to heavy financial burden as technology transfer comes with heavy price.
  • It also makes the country vulnerable in future to secure its sovereignty and independence. e.g. Transfer of technology in the defence and nuclear sector.
  • It can influence  economic, defence and foreign policy formulation of country as the country becomes dependent on other country for the technological needs.


Transfer of technology have played a crucial role in all round development of the country. Its multifaceted benefits can’t be ignored when it benefits public on the large scale. Hence, transfer of technology approach if adopted with the approach of indigenisation of technology will surely help India to be a giant player in the world economy.

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