Technology transfer financial definition of technology transfer
Also found in: Acronyms
technology transfer the diffusion of technological know-how and expertise concerning processes, methods of manufacture and innovative products across industries, within an industry or, in the international context, from country to country. Intra-industry technology transfer occurs when, for example, an exclusive PATENT accruing to one firm expires and other firms are then free to adopt the technology concerned, or alternatively, the rate and scale of diffusion may be speeded up if the patentor firm is prepared to LICENSE the technology to other firms. Technology transfer between countries often occurs as a result of the FOREIGN MARKET SERVICING STRATEGIES adopted by MULTINATIONAL ENTERPRISES (MNEs). For example, an MNE may choose to establish a manufacturing plant, incorporating innovative production techniques, in an overseas market, or grant licensing rights to local producers to use its technology.