The process by which commercial technology is disseminated and relevant knowledge is communicated to the recipient is known as transfer of technology. There are two broad forms of technology transfer, namely internalised and externalized. In case of internalized transfer, control remains with the transferor who holds full or major equity ownership. Externalised transfer comprises all other forms such as joint ventures with local control, licensing, strategic alliances and international subcontracting.
According to UNCTAD’s Draft Transfer of Technology Code, transfer transactions are of the following types :
(i) The assignment, sale and licensing of all forms of industrial property, except for trademarks, service marks and trade names when they are not part of transfer of technology transactions :
(ii) The provision of know-how and technical expertise in the form of feasibility studies, plans, diagrams, models, instructions, guides, formulae, basic or detailed engineering designs, specifications and equipment for training, services involving technical, advisory and managerial personnel, and personnel training ;
(iii) The provision of technological knowledge necessary for the installation, operation and functioning of plant and equipment, and turnkey projects ;
(iv) The provision of technical knowledge necessary to acquire, install and use machinery, equipment, intermediate goods and/or raw materials which have been acquired by purchase, lease or other means.
(v) The provision of technological contents of industrial and technical cooperation arrangements.