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Home»Informative Posts»Importance of Technology Transfer for Nigeria Technological Development
Informative Posts

Importance of Technology Transfer for Nigeria Technological Development

Mezie EthelbertBy Mezie Ethelbert
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Many developed countries of the world achieved technological development through the transfer of technology which is a duty that lies more with the engineers. Thus, understanding the concept and means of technology transfer is suitable for aspiring engineers, especially in the developing countries of the world.

Table of Contents

  • Technology
  • Transfer of Technology
  • Case Scenarios of Transfer of Technology
  • How Transfer of Technology can be Possible
  • Channels for Transfer of Technology
  • References

Technology

E.J. Kolade defined technology as the development and implementation of formats and formulas as set out in blueprints, process charts, materials, specifications, and the operating institutions required for the manufacture of products and/or services plus the technical and managerial capabilities required to operate the facilities. Technology was also defined in another context as the know-how required to design, construct products, operate industrial manufacturing and processing facilities, and management of Men, Machines, Money, and Materials (M4) in the process of producing the final item. Federal Ministry of Science and Technology, Nigeria (1986) defined technology as the way of doing things through the application of knowledge derived from systematic investigations of natural forces and materials. It leads to the development of processes and devices indispensable to the stable commencement of the quality of life and to human progress.

Transfer of Technology

Transfer of technology is defined in the 1992 document of the organization of American states as the process through which the production system of a country (public and private enterprises) acquires the technology produced in another country for incorporation in their enterprises. Federal Ministry of Science and Technology of Nigeria defined technology transfer to mean the absorption of technological knowledge and skills based on the experience of others through the systematic study of devices and specific methods of utilizing the resultant acquired knowledge for the replication of similar devices and methods in different locations. A pre-qualification for effective technology transfer is the involvement of indigenous skilled manpower in the absorption process.

UNCTAD (2003) asserts that all nations rely on stealing concepts from other nations to improve their economies. Only if the less developed economies can learn from the mistakes and best practices of the developed ones will they be able to catch up. Actually, the successful industrialization of East Asia and other nations may be attributed in large part to the importation of cutting-edge technology and management techniques. In short, access to and adoption of new technology, along with capital accumulation, is essential to the long-term expansion of economies. Therefore, creating and maintaining efficient access to technologically potent sources is essential.

Case Scenarios of Transfer of Technology

A number of case scenarios exist that involve the active transfer of technology. For instance, in the automotive industry, there are instances where two vehicles manufactured by different companies in different countries may have numerous resemblances in features and functions. While the history of automotive development can be linked to five countries: USA, UK, Germany, France, and Japan, it was the technological heritage that Japan got from the US after world war II that enabled them to develop large auto industries. Automotive industry development in neighbouring Asian countries such as South Korea, China, Malaysia, and Taiwan was also based on technological know-how that was received from Japan due to technology transfer. It was also noted that most of the earlier brands of vehicles produced by these Asian countries copied either US or European models before they were able to develop their own unique designs (Mc Keown, 2020). Currently in Nigeria, the Innoson group is investing heavily in the auto industries and there are instances where some of their vehicles are models of old or modern vehicles produced in some developed countries (eg. Innoson IVM G80 and the Volkswagen Beetle). Other instances such as the development of the Brazilian Aircraft industry, the Indian Pharmaceutical industry, and the South African Automotive Industry relied heavily on the Transfer of Technology (UNCTAD, 2003).

How Transfer of Technology can be Possible

To ensure the successful transfer of technology, there is a need for information on the technology in order to produce or process it in an attempt to transfer it. It requires to be understood and there must be means of carrying it out. Therefore, information and means of how technology can be transferred from one place to the other easily must be understood. The owner of it must be willing to release it with adequate information and support while the receiver must be willing to accept it with eagerness, discipline, and commitment. Transfer of technology usually involves the taking of technical skills from a nation where it is already established to another nation where it is unknown.

The demand for and the price of any particular technology are closely related to its productive capacity. The most profitable terms of technology transfer will appear to be those that are related to economic development. These are the ones that are closely guarded, restricted, and are therefore generally expensive. Technology for development, which Nigeria really needs, is therefore an expensive bundle of property covertly being monopolized by industrialized nations.

Technology does not belong to the government alone and cannot all be transferred through government agreements. Same, if not most technology belongs to private business. Such privately owned technology may not be made available to outsiders except through direct investments or through other methods which will ensure that profit to the owner company can be maximized.

Channels for Transfer of Technology

Seldom has a transfer of technology been accomplished except by the actual migration, temporary or permanent of one or more skilled persons. Through multiple and complex means of impersonal communication and rapid international travel, this element of the transfer of technology may not be readily apparent. However, transfer still depends largely upon the migration of skilled persons. Other means this transfer of technology can be achieved include licensing arrangements, collaboration with foreign firms, and the role played by foreign direct investment. While the issue of protection of intellectual property rights (IPRs) may come up, it is important that what a country might be able to do is consistent with the World Trade Organization’s Agreement on Trade-Related Intellectual Property Rights (TRIPS).

References

Mc Keown, J. (2020). Innoson Motors and Evolution of Global Post-War Vehicle Manufacturers. Retrieved on 21st July, 2023. URL: https://www.tekedia.com/innoson-motors-and-evolution-of-global-post-war-vehicle-manufacturers/

UNCTAD (2003). Transfer of Technology for Successful Integration into the Global Economy. UNCTAD/ITE/IPC/2003/6. Retrieved on 21st July, 2023. URL: https://unctad.org/system/files/official-document/iteipc20036_en.pdf

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Mezie Ethelbert

An inquisitive engineer with considerable skills in analysis, design and research in the field of civil engineering.

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