Technology Transfer

One of the main ways in which the Internet and e-commerce provide value is through the transfer of information between different entities, be they consumers, businesses, non-profit organizations, government agencies, or entire industries. Networks like the Internet allow information to flow freely across the well-defined structures to which these entities normally conform. They foster collaboration, giving birth to new discoveries and ideas. When intellectual property or technology from one organization or industry is discovered by a party in a different field and used or applied in a novel or unintended way, the phenomenon is called technology transfer. Although technology and e-commerce often play important roles in the technology transfer process, the central foci normally are ideas and intellectual property, such as access to patented information. However, it also may involve cooperative research, exchanging professionals with different skills, sharing facilities, and providing access to services.

The success of technology transfer can be measured in different ways. On the very simple end, this may involve the improvement or enhancement of something that already exists, such as a product or manufacturing process. Reduced costs and improved organizational efficiency are other measurable benefits. However, initiatives resulting in new markets, products, or services frequently are the most lucrative and receive the most attention. These initiatives can be measured in terms of market share percentages or in monetary terms.

The human factor also plays a role in determining how successful technology transfer initiatives are. As Industrial Management explained, "Integrating the diverse organizational experiences and skills and focusing on serving customers with new, cutting-edge products appears a lot easier when technology transfer-related decision-making power is equitably shared, strong feelings of reciprocal interdependence exist, the level of decentralization is high, and team leaders understand the human interaction issues of the process. Failure to understand these central features of technology transfer results in sluggish development of new products."

Because technology transfer is a general phenomenon, it can happen in virtually any industry or field. Individual inventors and businesspeople, smaller and medium-sized businesses, and large corporations all engage in and benefit from technology transfer. Universities, where a great deal of basic-science and high-tech research takes place, are another important source of technology transfer. Some universities have departments devoted exclusively to this goal, staffed with individuals who facilitate the transfer of research ideas to real-world applications that benefit society. These technology transfer departments perform many roles, including that of record keeper, marketer, and negotiator. Universities receive royalties or flat fees for the patented technologies they market, although in many cases these amounts are small because new technologies are new and unproven, resulting in a risk for marketplace organizations.

The Internet and e-commerce played important roles in the facilitation of e-commerce. In the early 2000s, many different organizations established an online presence to promote transfer. One such organization was the Pantex Plant. Located in Texas, Pantex assembled and disassembled the United States' nuclear weapons, and was also involved in interim plutonium pit storage, high explosive research and development, and evaluating weapons. At its Web site, the organization indicated that it sought to share the knowledge gained from more than 40 years of such experience with American industry.

Like Pantex, many large corporations have information they wish to share with other parties. Scores of companies have patented ideas that are of no immediate use to them, and therefore go unused. Converting these into sources of revenue represented an area of great opportunity. In the early 2000s, several online marketplaces devoted to the exchange of intellectual property and ideas offered a solution. These sites functioned as third-party brokers or intermediaries. They charged people fees to belong to their service and search for intellectual property that was for sale, and in some cases received a percentage of or royalties from deals that resulted from the service. The IP Network, Patent & License Exchange, TechEx, and Yet2.com were among these exchanges. In theory, these intermediaries made it more convenient for buyers and sellers to find and access information about one another.

Founded by a member of the DuPont family and a former Polaroid executive, Yet2.com had a large number of sponsors including Procter & Gamble Co., Ford Motor Co., the Boeing Co., and Motorola Inc. The site involved all research and industry sectors and was valuable to scientists, researchers, and technology officers. In 2001, Yet2.com connected DuPont with technology researcher Batelle, resulting in an arrangement in which DuPont licensed its patented chemical synthesis technology to Batelle.

In the early 2000s a formal society was devoted to technology transfer. The Technology Transfer Society (T2S) was a "not-for-profit professional organization dedicated to sharing methods, opportunities, and schools of thought with the technology transfer community. The T2S achieves its mission through programs, publications, forums, our annual conference, and other services designed to provide resources of information and contacts." In 2001, T2S had local chapters in several locations, including Washington D.C., Massachusetts, Alabama, California, Arkansas, Colorado, and West Virginia.