UA, UBRARY CRANFIELD UNIVERSITY ROGER A. F. SEATON TECHNOLOGY, KNOWLEDGE TRANSLATION AND POLICY: CONCEPTUAL FRAMEWORKS AND CASE-STUDIES Innovation & Technology Assessment Unit (IERC) PhD VOLUME II LIBRARY v 6 CRANFIELD UNIVERSITY INNOVATION & TECHNOLOGY ASSESSMENT UNIT International Ecotechnology Research Centre PhD THESIS Academic Year 1997 RAF SEATON Technology, Knowledge Translation and Policy: Conceptual Frameworks and Case-Studies Supervisor: M. Cordey-Hayes July 1997 VOLUME II O CranfieldUniversity 1997. APPENDIX BB1 Trott P., Cordey-Hayes M. and SeatonR. (1995) "Inward Technology Transfer as an interactive process: a case-study of ICP, Technovation, Vol. 15 No. 1,25-43 Technovation, 15(1) (1995) 25-43 Inward technology transfer as an interactive process P. Trott*, M. Cordey-Hayes and R.A. F. Seaton Innovation and Technology Assessment Unit, Cranfield University, Cranfield, Bedford MK43 OAL, UK Abstract Seaton and Cordey-Hayes (1J have drawn attention to many of the limitations and deficiencies in traditional technology transfer mechanisms. They argued that this was largely due to the dominance of the linear model of innovation on conventional thinking. Furthermore, they presented an alternative model of technology transfer (accessibilit),-mobility-receptivity) which emphasized the interactive nature of the process and highlighted the absence of any substantial research within the area of receptivity. This paper continues from that 1993 paper and focuses on the concept of 'receptivity' in the context of inward technology transfer. A conceptual framework is developed which identifies four major components of the inward technology transfer process. These are: 'aº+wareness','association', 'assimilation' and 'application'. Using this conceptual device, a series of studies is conducted within a number of businesses within ICI Chemicals and Polymers Ltd. The conclusions indicate the importance of non-routine activities and effective communications between credible boundary-spanning individuals. These are key aspects of the assimilation of new knowledge and the inward transfer process. This requires successful organizations not only to be efficient and competitive at their routine business in order to survive in the short term, but also to make room for opportunities for these creative, non-routine assimilation processes, which are more stochastic in nature, if they are to remain competitive in the long term. 1. Introduction based companies, has focused on the management of internal R&D. The study suggests that the A recent study of firms in Sweden, Japan and external acquisition of technology emphasizes the United States revealed that the external increasingly important challenges and new acquisition of technology was the most prominent responsibilities for technology managers. Similarly, technology management issue in multi-technology recent research by Rothwell [3) has highlighted corporations [2]. The role of traditional R&D the importance of external networks in facilitating management, particularly in Western technology- the innovation process. The research revealed that innovative small and medium-sized enterprises in ' Now at Portsmouth Business School, University of Ports- (SMEs) have dense external networks a variety mouth, Locksway Road, Southsea, Hampshire P04 8JF, UK. of marketing and manufacturing relationships. Technovation Vol. 15 No. 1 01.66-4972/95/US$07.00 © 1995 Elsevier Science Ltd 25 P. Trott et at. These linkages are often informal alliances and accumulating and retaining technical competence. industry associations. Nonetheless, these networks The issue of an organization's capacity to acquire are often the stage upon which much know-how knowledge was addressed by Nelson and Winter is exchanged [4,5]. However, it appears that not [9] who emphasized the importance of 'innovative all firms have the capacity to forge and develop routines', suggesting a need for some structure. effective external linkages, formal or informal. They argue that the practised routines that are Rothwell and Beesley [6] posit that the most built into the organization define a set of actions significant factor determining an SME's propensity that the organization is capable of doing confi- for and ability to access external technology is dently. These routines are referred to as an internal to the firm; most notably "the employment organization's core capabilities. It is important to of qualified scientists and engineers (QSE) and note that the notion of routines here does not the outward-lookingness of managers". In other necessarily suggest a mechanistic structure. The words, the lack of internal technological know- point is that, over long periods of time, organiza- how can inhibit external know-how accumulation tions build up a body of knowledge and skills and a firm's receptivity to externally developed through experience and learning-by-doing. technology. In earlier papers, the capability of an Defining precisely what activities are required organization to engage in knowledge transfer, on the part of the organization and the individuals accumulation and learning has been called recep- within it is not explored by any of the above tivity [1] or absorptive capacity [7]. authors. So while there is some conformity on the The notion of 'receptivity' advocated by Seaton importance of the accumulation of organizational and Cordey-Hayes [I] suggests that there are knowledge and capabilities, there is little written certain characteristics whose presence is necessary about the processes required by the organization for inward technology transfer to occur. In a to achieve this desirable state of 'receptivity'. (A similar vein, but within an, R&D context, Cohen similar argument is made by Bessant et at. 1101 and Levinthal [7] put forward the notion of who advocate a need to develop understanding of 'absorptive capacity'. In their study of the Amer- the routines associated with 'incremental ican manufacturing sector they reconceptualize the innovation'. ) Hence there is a need to uncover the traditional role of R&D investment as simply a internal organizational processesthat contribute to factor aimed at creating specific innovations. They 'receptivity'. A simple conceptual framework is see R&D expenditure as an investment in an developed that captures the main elements of the organization's 'absorptive capacity'. They argue inward technology transfer process. This frame- that an organization's ability to evaluate and utilize work will be used to analyse the inward technology external knowledge is related to its prior knowledge transfer process to uncover the activities involved. and expertise and that this prior knowledge is, in turn, driven by prior R&D investment. The importance of a strong research and inno- 2. The external search for technology: a vation tradition was also highlighted by Freeman case study of ICI [8], who showed the dominant role played by a few leading companies in the world chemical During 1989 ICI Chemicals & Polymers Ltd industry over a long period. Freeman suggested (CRP) established a Technology Trawling Group that this long period of innovative successwas due (TTG) to search for technology that the organiza- to 'technological accumulation', and that "such tion could use to build a new business for the accumulated strength and experience appears to C&P group. The process of acquiring externally outlive particular individuals". This suggests that developed technology, bringing it back into ICI it is the organization, rather than the individuals and utilizing the acquired technology proved to who pass through it, that is responsible for be far more complex than was originally envisaged. 26 Technovation Vol. 15 No. 1 Inward technology transfer as an interactive process It became clear that in order to successfully was required, what type of technology would transfer externally developed technology into an work, and they were also aware of the needs of organization it was necessary to understand the their customers. However, the relevance and process from the viewpont of the 'receiving' importance of each of these issues were held organization. within different parts of the business. To contribute to this understanding, a series of It was also clear that the business did not have studies was designed to examine the organizational technology requirements that could be easily factors involved in the inward technology transfer articulated in the form of a simple 'shopping list'. process. Our earlier research indicates the inward Their technology needs involved a variety of issues. transfer process could be envisaged as a series Furthermore, the inward technology transfer pro- of stages, which have been called awareness, cessappeared to concern the ability to link technical association, assimilation and application [11]. The opportunities with commercial opportunities and first study aims to uncover the factors involved in match these with internal technical and commercial awarenessand association and the second explores capabilities. As if this was not enough, it also the assimilation process, using cognitive mapping. concerned developing 'interest' and 'enthusiasm' The initial investigation set out to uncover among people within the business to ensure the information from a variety of people within the technology was applied effectively. organization who had been involved in previous ICI C&P and the R&T department in particular attempts to acquire technology from the TTG. absorb vast quantities of information