Technology Transfer to Multinational Medical Device and Pharmaceutical Companies Manufacturing in Ireland


by Ulick Stafford, 2000

A Thesis

Submitted to the Business School of Waterford Institute of Technology in Partial Fulfilment Requirements for the Degree of Master of Business Administration, August 2000

EXECUTIVE SUMMARY

International technology transfer is the movement across international borders of advanced materials, the 'know-how' to make advanced materials, or the ability to improve or further development of advanced materials. The Healthcare and Pharmaceutical industries in Ireland are dominated by foreign owned multinationals, and therefore inter- firm technology transfer is extremely important to them. The objective of this research was to ascertain how multinational pharmaceutical and healthcare companies manage the process of technology transfer into Ireland, and to find out what they have learned in the process that can help them do it better in future. A mail survey was sent to 142 subsidiaries of multinational companies examining their technology transfer process and 56 usable responses were received. The survey was analysed and a new measure, Technology Transfer Effectiveness (TTE) which is a composite of adherence to schedules and budget was developed in order to make comparisons.

It was found that

  • American companies transfer technology more 'effectively' than European companies,
  • the length of time operating in Ireland and number of previous transfers does not influence technology transfer effectiveness,
  • technology transfer is smoother in less labour intensive firms,
  • subsidiaries with more autonomy over human resources and finance transfer technology more effectively,
  • the second implementation of a technology is more likely to be transferred on schedule than the first implementation,
  • companies who have experienced defections by employees to competitors have better technology transfer effectiveness,
  • when 5 or more people from head office, other affiliates or vendors visit the Irish plant as part of a technology transfer, the start time is significantly advanced,
  • when the amount of travel by Irish employees as part of a technology transfer process was reduced when compared to previous transfers the project was significantly more likely to be under budget,
  • the ease with which operators can be trained in the transferred technology correlates with smoother technology transfer,
  • no significant improvement in technology transfer effectiveness was observed due to having a person specially responsible for technology transfer, various business improvement initiatives, Internet usage or R&D in Ireland,
  • the number of firms conducting R&D in Ireland has increased in recent years. Effective project planning and management and strong communications were stressed by respondents as the keys to successful technology transfer.

    TABLE OF CONTENTS

  • Introduction
  • Literature Review
  • Methodology
  • Findings
  • Discussion
  • Conclusions and Recommendations
  • Bibliography
  • Verbatim Comments