SSI/SME Entrepreneurs,

Whether to do research and come at something useful technology or to go for technology purchase? This questions hunts more than 99% start up Entrepreneurs. Let us give a though here to help those who can become part of rapid development process and industrial growth plans of their country.

Technology Transfer can lead to Rapid Industrial Growth and hence start up industries must consider this rather than waste time and money in trial and errors. Many engineers sped several years in research before they come to conclusive stage of having a reliable technology that can go for production.

In India we find scope for Technology Transfer much more than in developed countries as here people are not having resource to develop technology on their own.

What is reasonable cost of the technology?

Assume that one expert engineer may put up 1 year time to develop technology and his salary will be US$60000/pa and then almost same amount of material is used gets added to the cost. Then some establishment facility is used by the engineer and it need to be compensated. Assuming this also almost at the same cost then total amount becomes US$180000.

If this technology is transferred to 10 companies and 100% gain is added for the technology owner then US$360000/10 = US$36000 should be considered reasonable cost for technology transfer.

i believe with this rule of thumb genuine small scale technology transfer may be possible within US$40000-50000.

How does technology transfer compares with the cost of the products?

It may have no direct relationship. However we can consider SSY product to be within US$500-1000 range and sale value US$1000-2000 range.

How much investment is to be planned?

Cost of the establishment 50%

Cost of the technology transfer 20%

Cost of the initial production raw material 30%

This makes initial investment at about US$200000

Not all money is to come from Entrepreneur. However 20% to 40% range may be cash from Entrepreneur and remaining from bank finance. Mainly technology transfer fund need to be from start up fund on hand.

What i likely to be break event time and growth?

Break even time of 2 year to be considered OK and some time one may have 1 year and some time problematic 3 years. Growth rate at 40% to be considered good.

Which technology is to be considered?

This is very difficult question and one must know the potential of market where one can sell the product and there is likely competition of similar nature to be faced by smartness in product and proper management.

Can we list few products that may be of interest? Well yes and we all can add something here to suggest.

I have a plan to let Entrepreneurs in India to manufacture these

1. Temperature sensors, controllers and meter

2. Humidity, Humidity plus Temperature sensors, controller and meters

3. Water and fluid level controllers and meters

4. Material flow rate and mass/volume controllers and meters

5. Proximity Sensors

6. Signal converters, isolators, Interfaces and displays

7. Pressure sensors and controllers and meters

8. RPM Sensors, controllers and meters

9. Food quality sensors and displays

10. Other

What are possible chances that one will take such advice seriously and may look for rapid growth as per this discussion? I think 1% people just are number right now who may consider it but it will be great if their number can increase to 5%.

People with technology can pool up ideas at one place for a variety of technology to let Entrepreneurs chose the right technology for their own interest. Sometime this is done by some mediator. In India Government agencies also do this job.

Reducing technology transfer cost by increasing the number of Entrepreneurs using the technology is something very essential and this can happen over a period of time and hence technology transfer cost can keep coming down over time.

Scope of this discussion?

I expect Entrepreneurs to come up with questions and Technology owners also can say something about technology they have in hand. Giving link is much better than placing lots of information here. This is not intended to be a purchase and sale point and hence, cost considerations are only rough estimates and not exact sale value or in any way intended to be commercial. Kindly make this discussion useful to the extent it is possible. Avoid any personal comments.