Assessing The Effectiveness Of India’s Technology Transfer Initiative To Foster Innovation

1. Abstract

India’s systematic approach to technology transfer, rooted in the establishment of the National Research Development Corporation (NRDC) in 1953,  has evolved to become a critical process of economic development, security enhancement, and global influence. This paper explores Indi’s commitment to technology transfer, driven by recommendations from various studies and reports, ensuring rigorous scrutiny to prevent lacunas in technology transfer. India’s remarkable performance in the 2022 Global Innovation Index underscores its growing global world importance in innovation. Intellectual property rights (IPR) play a centric role in safeguarding technology transfer from infringement, with the entire process protected by the transferor nation or industrial entity. India’s partnership with the United States emphasizes shared values that more focusing on trade and defense deals, with attention on sustainable development during India’s recent G20 presidency. The paper primarily delves into foreign licensing, attracting  Foreign Direct Investment (FDI) in technology transfer. However, questions are raised about the true impact of foreign collaborations, calling for reforms to ensure genuine technological growth. This transformation reflects India’s commitment to becoming a technologically advanced and self-reliant society with thriving technology-based livelihoods.

2. Introduction

India has been recognized as a crucial player in technology transfer Over the last decade in promoting economic development, strengthening internal and external security, and expanding into new markets throughout the globe. The recommendations from various studies and reports have emerged as a crucial step in ensuring the effective transfer of technology, coupled with rigorous study to prevent negative gaps during tech transfer. India’s commitment to technology transfer aligns with its broader goals of fostering economic growth in disadvantaged regions, enhancing security, and contributing to global stability through social and political development along with India’s regional sectors through public-private partnership. India’s remarkable performance in the 2022 Global Innovation Index, ranking among the top 40 countries out of 132 nations, underscores its growing importance in the global innovation landscape. As the current president of the G20, India has a unique opportunity to solidify its leadership position and drive research and innovation on a global scale through geo-political ties. In the process of becoming a leading hub of technology by 2030, Intellectual Property Rights (IPR) play a pivotal role in safeguarding technology transfer, with the whole process protected by the transferor nation or industrial entity. Partnership like  India and the United States has emphasized shared values of democracy,  transformation, and multipolarisation after the G20 Presidency 2023 by India where strategic partnership among all important nations shows their joint commitment with India to sustainable development goals.

3. Literature review

India currently has one of the fastest growing economies along with stepping towards self-reliant India, Tech transfer is always one of the fundamental bases of any developing nation to boost a country’s goal policy for much sectoral growth through innovations, and India developed a long-term healthy multiliteral relation with major interested nations like USA, UK, France, Germany as a result it helps to acquire tech understanding. by K. Sachpazidu-Wojcicka, In the Open innovation process via technology transfer and organizational innovation, where it expressly recommends the Positive Relationship Confirmation, The surveys have provided evidence supporting a positive relationship between technology transfer and organizational innovations in the studied firms. This implies that when firms engage in technology transfer activities, it tends to have a beneficial impact on their ability to innovate within their organizational structures. Other hand the Diverse Channels of Influence The statement highlights that this positive effect on organizational innovations is not limited to a single pathway. Instead, it suggests that there are multiple channels through which technology transfer influences innovation. These channels include both material aspects, such as the transfer of tangible technologies or resources, and non-material aspects, which might involve knowledge exchange or collaboration. 


Industry 4.0 technologies mean the integration of intelligent digital technologies into manufacturing and industrial processes like AI, Big Data, robotics, automation, then digital trust, and technological orientation- What matters in open innovation by MF Mubarak, M Petraite, in this research the broad finding is the fourth industrial revolution, presents a significant opportunity for both social and technological advancements. This revolution is characterized by advanced cyber-physical systems and technological infrastructure that can greatly enhance a company’s productivity and innovation capabilities. However, Industry 4.0 also shortens product life cycles and requires faster innovation. Notably, the author said, the statement underscores that relying solely on internal resources will not suffice for a company to keep up with the accelerated pace of innovation in this era, implying the need for external collaborations and partnerships to thrive in the Industry 4.0 landscape by global partnership.

In the “Transfer of Technology in Indian Defence Manufacture – Elements and Challenges” by TM Srinath, the finding of the research shows significant challenges that may occur such as intellectual property rights, technological readiness of the recipient, trust between parties, costliness compared to off-the-shelf purchases, availability of skilled labor, demanding terms, high costs, reluctance to transfer niche technologies, and fear of brand dilution of small businesses to absorb technology.

The literature reviewed in this paper highlights the significant changes that will lead to some great significance in being part of our futuristic goal in India’s technology transfer initiative to foster innovation, The analyzed data from multiple sources has provided a comprehensive and in-depth understanding. The paper also identified that the technology transfer leads to a greater force which includes vast sectors under it and primarily covers defense pacts and deals. The fear of a new Artificial Intelligence model may create Intellectual property rights violations and create hurdles in the system between big technology firms that directly collaborate with government projects in various regions of India.   India’s recent emerging initiatives like INDUS-X under iCET related talk about expressly and giving assurance to the USA about proper technology protection in the era of cyber threats from China because the USA being a most trusted partner to India, china in the past stole many technology blueprints or sort of reverse mechanism indirectly by its force tech transfer that has been practiced since long and it result in many IPR disputes. this paper suggests that implementing the recommendations made by various studies and reports can significantly improve the proper tech transfer with appropriate scrutiny to find loopholes that may not be authorized. 

4. Objective of Technology transfer initiative

India’s sole purpose behind the transfer of technology is to promote economic development in underdeveloped regions and strengthen India’s internal and external security, while also helping to open new markets with increased social and political stability that can have global benefits to make a resilient approach, as we can see this approach during covid 19 where India alone distribute self-made vaccine to 15 countries, it shows India’s potential that possible with the proper implementation of public policy in required to promote innovation and easy access of technology at low cost. 

Human capacity and technological knowledge combined contribute to India’s core sectors mainly in the financial, defense, and R&D sectors, which become the government’s primary objective to attract more tech transfer deals with developed nations to understand the process of development in the modern era. To create enabling and showing environments for innovation, particularly by stimulating research and development. This includes greater investment in science, technology, and innovation infrastructure by both public and private entities, which will build human capital, and bolster intellectual property systems to create greater incentives. 

The budget of 2023 mainly highlighted topics related to fostering or enhancing innovation, Prime Minister Narendra Modi, in his recent address at the 108th Indian Science Congress, has articulated the strategic role that science and tech would play in shaping the nation. PM Modi has said in the event that India will be the most advanced laboratory of modern science. In the 2022 report, India performed extensively well in the rank of the Top 40 countries in the 132-nation Global Innovation Index, which shows India will achieve a greater milestone in the future in both the defense and R&D sectors. As the current G20 president, India now has an opportunity to establish its credentials as a leader and a driver of research and innovation with More focused objectives on addressing major issues related to the global economy and technology collaboration with partner countries, such as because international financial stability and sustainable economic growth.

5. Role and importance of IPR in technology transfer

Technology transfer is basically a wide term that is discussed as it helps developing nations to understand how innovations can improve the economy and style of livelihood, There are some forms on the basis of which power shifted from one body or entity to another such, as a licensing agreement, joint ventures, research, and development collaborations these are mainly done by big market cap companies such as Lockheed Martin, General Dynamics, Hindustan aero, Bharat electronics. Technology transfer is one of the crucial mainstream factors that transfer knowledge, skills, and expertise. In tech transfer Intellectual property right holds significant importance because the whole transfer is protected by the transferor nation or the industrial entity. In the world market, there are various kinds of products made by various entity that is the reason, IPR classifies and save the real owner’s right under patents, trademark, copyrights, trade secrets, and geographical indication. One example of tech transfer other than defense which is massively shared by companies is that pharmaceutical companies may hold licenses of new drugs to a company in another country, allowing them to manufacture and sell the drug in the market it involves big tech laboratory companies.

In the present time when India growing as one of the fastest economies in the world, Its defense ties and innovation sectors such as the Department of Science and Technology, and Department of Biotechnology International trade deals broadly focus on this 21st century with the essence of India’s Atmanirbhar Bharat. India’s recent development in military ties with the US importantly strengthened the defense sector which concluded with the visionary roadmap of industrial cooperation to fast-track technology tie-ups and co-production of military platforms such as air combat and land systems.  It has some benefits and demerits on the IPR side and because of that both the entity must note some key points as necessary while transferring. 

Benefits– Transfer of technology offers cost savings, sparing businesses, especially SMEs, from developing technology from scratch. This enhances the area of competitiveness, improving products and services, ultimately spurring economic growth and job creation, and aids in capacity building, particularly in developing nations by granting IPR rights.   

Challenges- IPR in tech transfer may create barriers Negotiating licensing agreements can be intricate, especially with multiple parties and differing legal frameworks. Balancing the interests of technology owners and recipients can create tensions over intellectual property rights. Concerns also arise about technology misuse, potential infringement, and the transfer of outdated technology and the other hand as in the past we have seen China’s high-tech cyber activity to steal key information on military weapons become a potential threat.

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Author : Loknath Saha