Issues and Experiences of Technology Transfer in Singapore - Term Paper Example

Management of Technology 2 Name Professor Course Date Contents Introduction 3 Issues and Experiences of Technology Transfer in Singapore 3 Opinion and Recommendations 7 Summary of the Key Points Learnt 8 Conclusion 9 References 11 Management of Technology 2 Introduction Research centres, hospitals and universities conduct adequate research that generates reliable and important technologies. The technologies are essential in improving the lifestyles of the society as well as save lives (Filatotchev, 2009). Technology transfer refers to the process of disseminating skills, technical knowledge and products from an original source into a wider sphere of use. The concept of technology transfers consist of two stages (Hwang and Gay, 2013). The first stage entails the transfers of technology from non-commercial to commercial purposes. In this case, knowledge transfer from research environment such as organisations, universities and government research centres is transferred to the commercial sector. The other stage encompasses the transfer of technology from industrial to developing economy. This paper examines the aspect of technology transfer in Singapore in different sectors of the economy. It further highlights the effects and experiences of transfer of technology to different economic and social contexts of Singapore (Gwee, 2009). The final part of the paper provides recommendations regarding the appropriate approaches to technology transfer in the country. Issues and Experiences of Technology Transfer in Singapore The phases of transfer of technology occur in a specific sequence. The knowledge from different research setups is transferred to the commercial, which consequently facilitates the transfer of the technology to different countries. For instance, medical inventions in government laboratories and research institutes is commercialised by drug and medical equipment manufactures (Blalock and Gertler, 2009). The manufactures then form joint ventures with foreign investors, which promote the transfer of the invention to other economies (Tsai and Wang, 2009). The economy of Singapore is among the fastest growing economies in Asia due to the initiatives of the government support and promotes research in manufacturing, production and service industries. The development of technologies in the medical, aviation, manufacturing and service sectors in the country promotes the occurrence of technology transfers. The concept of technology transfer in Singapore occurs in three phases. First, the inventions from the research centres and learning institutions is commercialised through the manufacturing and selling of products using the new technology. Secondly, various commercial organisations transfer the technologies to third parties in other countries through joint ventures and acquisitions (Parikh, 2009). Finally, Singapore based corporations acquire particular technologies from their partners in developed countries (Technology Transfer to China: Guidance for BusinessesThe, 2012). By forming business ventures from established companies from Europe and the United States, the local business acquires new concepts of production that promotes the transfer of technology. Presently, the economic growth in Singapore depends on technology because it results from technology improvements or accumulation of production factors such as labour, capital and land. Most of research and innovation occur in developed countries because of the availability of appropriate resources and skills (Gwee, 2009). The inventions occurring in developed economies are spread to other regions worldwide through various channels such as capital good import, licensing, labour migration, FDI and turnkey plants. The most prevalent channel for technology transfer in Singapore is FDI (Sekhar, 2005). The channel can have vital spillovers of technology in the host country, especially if it is in form of joint venture to local control. The issue of technology transfers from various countries to Singapore has been a subject of interest to different groups such as policymakers, governments, business executives and international funding agencies due to the impact of technology transfer on the growth of economy. The experiences of nations that have developed the technological ability in a short period indicate that the transfer of technology is an essential factor to the country’s capability to develop new technologies. The rapid growth of economies in East Asia is attributed to the aspect of transfer of technology from European countries and the United States. Singapore and China are the economies that have benefitted through the adoption of FDI based transfer of technology. In this case, the licensing regulations of the host country limit the ability of the foreign organisations to protect their technologies when investing the country (Parikh, 2009). The transfer of foreign technology in Singapore is responsible for the steady and rapid growth of different sectors of the country’s economy such as health, manufacturing and information systems. The formation of joint venture between the local and foreign information systems organisations has enhanced the growth of the IT industry in the country. Furthermore, the healthcare sector in the country has been experiencing technological advancements in various contexts such as data keeping and processing, manufacturing of medical equipments and surgical processes. The Singapore government has established various policies that promote the creation of joint ventures between the local and foreign organisations to enhance economic growth through technology transfer. Moreover, most of the foreign corporations operating in the country provide additional training to the Singapore employees on the development and implementation of modern technologies, which facilitates technological transfer. The policy framework of Singapore promotes the transfer of technology through various ways (Filatotchev, 2009). First, the policy allows a high degree of internationalisation and economic openness, which promotes an increase in the number of foreign direct investments. Secondly, the government provides investors with substantial funds for the development of automation systems and appropriate technologies. Besides, the concept of attracting foreign investments in specific sectors of the economy such as healthcare, manufacturing and agriculture is important in promoting the aspect of transfer of technology (Park and Ghauri, 2011). Singapore government promote the chances of diffusion of foreign technology knowledge and technology by limiting the requirements for equity ownership and joint ventures. The government identifies and provides incentives or priority for high technology and joint venture investments to strengthen the aspect of technology transfer. The government has also established and implemented policies that facilitate the adaptive and absorptive abilities of new technologies by the local businesses (Duan and Coakes, 2010). The policies entail the development of skilled labour institutional and industrial interaction to enhance the competiveness and quality of domestic workforce and industries (Sekhar, 2005). The promotion of the quality of the local workforce and industries attracts direct foreign investments in the country, which facilitates the transfer of technology. The effects of technology transfer in Singapore reflect on different sectors of the economy such as construction, manufacturing, healthcare and communication (Lerner, 2010). Technology transfer in the manufacturing, communication and healthcare industries in the country promotes the rate of employment. The transfer of technology facilitates the growth of industries and organisations in different sectors of the economy that creates employment opportunities to the local populace. The high rate of economic growth in Singapore due to technology transfer enhances the welfare of the population because of the availability of adequate resources and finances to cater for personal needs. Research indicates that Singapore has the highest rate of employment in the manufacturing, communication and construction sectors in East Asia. The concept of technological transfer in Singapore has influenced negatively on the social aspects of the population. In this case, the growth in different sectors of economy promotes migration of labour from other countries to Singapore, which influences the culture of the population. Besides, increased population resulting from migration of labour might lead to employment issues in the country. Technology transfer also hinders innovation in Singapore (Thomas and Kobayashi, 2014). Most of the local organisations depend on innovations of other countries in their production and manufacturing that limits innovativeness among the local industries. This dependence on foreign technology limits the competitiveness of the local products on the international platform (Lerner, 2010). Opinion and Recommendations I believe that the effects and experiences of technology transfer in Singapore are vital for economic growth. In addition, it promotes the exchange of skills between the concerned countries that is essential for development of improved versions of the existing technologies (Ling, 2009). In this case, the government of Singapore should embrace various activities that enhance technology transfer. First, the government should support the local corporations financially, which is essential for their growth and competitiveness in the international market (Park, 2011). The growth of the local businesses is vital in attracting investment proposals from established high tech organisation that \promotes the transfer of technology. Secondly, the government should encourage research and innovations in the learning institutions to promote the quality of local product. Likewise, the investment in training of the local population is important in enhancing the skills and quality of the workforce, which is crucial in attracting foreign investors in the country. A review of the existing policies regarding joint ventures in the country is vital for establishment of regulations that allows the local companies to adapt and absorb the foreign technologies easily. In this case, the conditions of the joint venture agreement provide the local business with control over the foreign technology (Thomas and Kobayashi, 2014). Thirdly, the authorities should provide incentives to foreign investors to facilitate foreign direct investments in different sectors of the economy. The incentives facilitate the transfer of technology through the skilled workforce and joint ventures. Summary of the Key Points Learnt Research centres, hospitals and universities are the foundations of technology development in Singapore. Technology transfer entails three main phases: transfer from research centres to industrial setups, from industrial environments to commercial platforms and across nations. Initiatives by the Singapore government to support and promote research and transfer of technology in manufacturing, production and service industries enhance economic growth. The authorities can facilitate technology transfer by providing a good business environment that facilitates joint venture and FDI in high-tech sectors. Figure1: The cycle of technology transfer Retrieved from: http://blogs.lse.ac.uk/usappblog/2015/09/13/introducing-lse-business-review-the-top-ten-ways-in-which-business-firms-and-universities-interact/ Figure 2: Market and Economic Barriers of technology transfer Retrieved from: http://slideplayer.com/slide/2374853/ Conclusion The paper has highlighted the issue of transfer of technology in Singapore. Besides, it has examined the experiences and effects of technology transfer in the country such as economic growth, employment and industrialisation. The aspects of technology transfer in Singapore are identical to the ones ion China and other countries in East Asia. The effects of technology transfer in Singapore reflect on different contexts of the economy such as improvement in healthcare, transport, power generation and manufacturing approaches. The transfer of technology in Singapore occurs mainly through joint ventures and foreign direct investments in the country. 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