How to give your business a competitive edge

In this digital age, it doesn’t matter if you are in Canary Wharf or Caribbean, there are opportunities waiting to be grasped by entrepreneurs- Richard Branson.

The above quote is true in the digital era where a number of opportunities exist for entrepreneurs willing to grab them. One such opportunity exists in technology transfer and transfer of technical know-how.

Technological knowledge has commercial value in that it can be traded and commercialised. Technology transfer allows technological know-how such as scientific knowledge, inventions, innovations, designs, models, and intellectual property to be transferred from the original creators to secondary users who acquire the technology.

Institutions such as universities and research institutions generate a lot of knowledge which can be commercialised.

Businesses, on the other hand, need to embrace new technology so as to attain a competitive edge and serve their customers better.

Technology transfer allows these two parties to share technological know-how for the mutual benefit of each party.

The creators of technological know-how benefit from technology transfer agreements through extra income. Businesses and other secondary users benefit from technology transfer in many ways.

One is that it allows businesses to uptake new technology fast and therefore earn a competitive advantage over others. Businesses save on money and costs that would have been spent on research and development. Technology transfer also leads to the creation of new jobs.

There are many legal issues that may arise due to technology transfer. Experts’ advice that before engaging in technology transfer whether as a creator or a user, there needs to be an existing framework due to the numerous legal issues that arise.

Some tips on up taking technology transfer include first undertaking a technological needs assessment. It is also important to identify different providers of technological know-how and identifying a supplier. After this, then parties can get into negotiations before signing a suitable technology transfer instrument.

There are very many models through which technology transfer can be undertaken ranging from intellectual property licensing, staff exchange between the creator and the user, collaborative research, research and development agreements.

On the creator’s side, there are seven main steps to be taken during technology transfer. The steps include invention, intellectual property protection, valuation, marketing and commercialization.

The creator should ensure that the technological know-how is secured through intellectual property before entering into transfer arrangements.

The legal documentation to be signed during a technology transfer arrangement depends on the method used. An intellectual property licensing agreement is signed when the creator gives authority to the business to use the technological know-how in exchange for payment.

A technology transfer agreement on the other hand does not only provide for the uptake of the technological know how but also has provisions on governance of the structure, administration and implementation.

Ms Mputhia is the founder of C Mputhia Advocates | [email protected]