TVP – Metric 25 Technology Transfer to Manufacturing

Background | User Guide | Program Contents | Stakeholders | List of Metrics

1. Metric Definition

Either the quantity (number or value) of projects transferred to the manufacturing arena, or the quality of the technology transfer process according to a subjective scale.

a. Amount of Technology Successfully Transferred to Manufacturing

The output of R&D is technology which must be embodied into products or services. This metric measures the amount of technology which is successfully transferred to manufacturing. It is a measure of value created by the R&D function. The form of the metric may vary:
• Number or percent of projects transferred
• Monetary value of R&D expense or percent of total R&D expense related to transferred projects
• Projected Value (future sales or profits) of projects transferred.

b. Quality of the Technology Transfer Process

A firm may rate its technology transfer process by using a subjective scale ranging from one to four. Firms operating at level one are characterized by unsupported hand-offs. Firms operating at level four are characterized by a development process which includes involvement by manufacturing in all phases of the project in order to ensure that the transfer will be seamless. This metric is one of many relating to how well the firm conducts the practice of the R&D process. It also relates to how well R&D is integrated with the business.

2. Advantages and Limitations

The advantage of this type of metric is that it relates to value created by the R&D function without needing several years to collect data. It is a surrogate for financial return. Presumably, the more technology transferred to manufacturing, the higher the financial return. However, it should be clear that this is not necessarily the case. Some technologies transferred could result in financial losses.
The measurement of the quality of the transfer process can be used to diagnose problems with the process and plan for improvement. 
 

3. How to use the Metric

The amount of technology transferred to manufacturing during a time period, usually one year, should be tracked over time. The expectation is that a steady state will be achieved with a flow of technology occurring at a rate which can be accommodated by manufacturing and which meets the needs of the firm for new products and services.
The projected value of the financial return from projects transferred during a time period should also be tracked over time. The expectation is that the value will increase due to the choice of better projects and more efficient management of the R&D process. Actual financial returns should be compared to the projections, although there will be a large time lag. Efforts should be made to improve the quality of the projections.
These metrics can be used retrospectively to measure the output of R&D over the past period, or prospectively to set targets for future accomplishments. The use of projected value is a prospective estimate of financial return.

4. Options and Variations

Service companies and companies who sell technology may wish to use this metric to relate to transfer of the output of R&D in a more general sense to manufacturing, into services, for sale, for license, or any other use appropriate to the firm and which would be considered a successful outcome that creates value.

5. Champions and Contacts

6. References