Technology transfer is the process of taking raw research or data and transforming it into a marketable good or service.  The purpose of this is to place new products and processes in the marketplace through existing companies, or new companies built around particular technologies.  There are three steps to this process: Innovation, Adaptation, and Commercialization.  The first step, innovation, involves research and experiments related to a certain idea or theory, and the conclusions that come from this process.  In the adaptation stage, the findings from the research are matched with possible applications.  Finally, a product formed from this application of the research and development is brought to the marketplace in the commercialization phase.

Why is Technology Transfer important?

Technology transfer is important at the national level to maintain the United States' competitiveness in the global marketplace.  A country's level of economic development and competitiveness are largely determined by the rate of technological innovation they are experiencing.  This rate of innovation is determined by the amount of research and development that is invested to create new technology and the capacity to pool and transfer scientific and technical resources.  In the past few decades, the United States has become less and less competitive relative other countries such as Germany and Japan.  Although we lead other countries in supplying high-tech goods, this lead is quickly shrinking.  This may be due to declining rates of capital investment in plant and equipment modernization as well as declines in research and development expenditures by government and the private sector.  Many laws and statutes, now reformed with new legislation, discouraged collaboration and cooperation.  A greater focus on research and development partnerships between the public and private sectors, which leads to new technology and innovative projects, is key to retaining competitiveness. Unfortunately, even though the United States still produces what many believe is the best research in the world, many firms have difficulty turning this research into a commercial gain.  Technology transfer programs are designed to speed the transition of ideas from laboratory to market by encouraging collaboration between the federal government, universities, and private firms.

Technology transfer is important at the state and local level to attract and retain companies.  States and localities running technology transfer programs can offer assistance to firms in the area, and attract new firms with their services.  Some state-run programs include incubators, which provide small businesses with resources that help them to lower their costs in their first critical years, and research parks, which enable like firms to locate in close proximity to each other, stimulating collaboration and cooperation.

What forms can Technology Transfer take?

Data/Information:  facts derived from experiments
Know-how/Expertise:  knowledge, formulas, processes
Rights to Make/Use/Sell:  legal conveyance of the rights to patents or copyrights
Embodied Technology:  something contained in the product's or input's finished form

What is the economic developer's role in Technology Transfer?

The economic developer's role in the technology transfer process is one of a broker and an educator.  Often firms, especially those that are small and medium sized and in most need of assistance, are not aware of the many programs available to them.  An economic developer's job is to identify firms that would benefit from technology transfer programs and put them in contact with a federal or university lab that they can partner with to develop and, eventually, market a product.  Economic developer's can also educate the business community on federal programs, such as SBIR and STTR, that they may qualify for.