W 1echno|ogy transfer |s a pr|nc|p|e means of |ndustr|a||zat|on for underdeve|oped nat|ons W 1he transfer of techno|ogy from deve|oped to deve|op|ng country has grown cons|derab|y |n |ast few decades W Acqu|s|t|on of techno|ogy cannot be regarded as a neutra| phenomenon It |s c|ose|y bound by the econom|c po||cy at both nat|ona| |nternat|ona| |eve| 1he |rreduc|b|e constra|nts W 1he |rreduc|b|e set of constra|nts on the transfer of techno|ogy from kD to product env|ronment are W erformance Lff|c|ency Irequency of operat|ons Vo|ume we|ght 8andw|dth power d|ss|pat|on W ke||ab|||ty ke||ab|||ty |s the ma|ntenance of funct|ona||ty(performance spec|f|cat|on) over the ||fe cyc|e W ost ost |s ca|cu|ated |n terms of funct|ona||ty |e cost per un|t of performance App||cat|on Space W In the kD env|ronment we ta|k of trade off between cost performance re||ab|||ty W In the product env|ronment the spec|f|cat|on of cost performance re||ab|||ty |s determ|ned by and mapped onto an app||cat|on 1h|s mapp|ng process def|nes an "app||cat|on space" hav|ng three |ndependent axes(orthogona|) W Ior a g|ven app||cat|on there |s a m|n|mum performance spec|f|cat|on m|n|mum re||ab|||ty spec|f|cat|on and max|mum a||owab|e cost th|s set const|tutes a po|nt |nn the app||cat|on space W 1he tota| market them |s then the co||ect|on of a|| po|nts |n the app||cat|on space W Any tradeoff w||| def|ne at best a new app||at|on at worst product w||| not match any ex|st|ng app||cat|on 1he exper|ence urve W 1he exper|ence curve ref|ects the evo|ut|on of un|t cost w|th cumu|at|ve product|on vo|ume W 1he exper|ence curve or costvo|ume( V) curve teaches that un|t cost dec||nes w|th |ncrease |n cumu|at|ve vo|ume keturn on Investment W 1o est|mate return on |nvestment we need to super|mpose pr|ce on the V curve as shown be|ow keturn on Investment W In|t|a| pr|ce determ|ned by market force |s |ower than cost W As producer moves down cost d|ps be|ow pr|ce prof|tab|||ty starts r|s|ng W A pr|ce reduct|on as shown |n the f|gure may be due to compet|t|on or adapt|on of techno|ogy W nashed ||ne |s for stab|e market -ecess|ty for 1echno|ogy 1ransfer W I|rst chang|ng compet|t|ve env|ronment W 1o have compet|t|ve advantage W 1o be |n a favorab|e s|tuat|on than compet|tors W Strateg|es |n bus|ness area are estab||shed |n cons|derat|on w|th some fundamenta| factors and requ|red cond|t|ons 1echno|ogy Cutsourc|ng W Sub[ects of techno|ogy outsourc|ng 1echno|ogy Cutsourc|ng W Management env|ronment factors that promotes techno|ogy outsourc|ng haracter|st|c of 1echno|ogy W Assets that have econom|c va|ue |arge|y can be d|v|ded |nto tang|b|e assets wh|ch have spec|f|c form Intang|b|e assets wh|ch does not have any spec|f|c form W 1echno|ogy to be transferred can be |nc|uded |n the |ntang|b|e category W In w|der sense |t means ent|re |nte||ectua| property wh|ch has econom|c va|ue W |ann|ng and execut|ng bus|ness strateg|es based on understand|ng of var|ous character|st|cs of |nte||ectua| property |s a short cut to bus|ness success haracter|st|cs of Inte||ectua| roperty W noL vlslble and does noL have any physlcal form W 8ecovery value ls relaLlvely hlgh because of Lhe llmlLaLlon ln creaLlon and producLlon due Lo Lhe hlgh level of lnLellecLual creaLlon