Selecting the Appropriate T echnology T ransfer Method to Reach the T echnology Localization Abstract-The aim of technology localization is an important issue, especially in developing countries that try to acquire new technologies by using a technology transfer method. Since these mechanisms may not lead all companies to attain their required knowledge and skills, further investigations must be conducted in order to choose the best method depending upon their criteria and goals. Several approaches exist for technology transfer, each focused on certain factors and objectives. Identifying the proper methods for localization is of great help for companies that plan to access technology to strengthen their knowledge and R&D basis for further innovation. In this research paper, we identify the factors required to localize a technology within the company in various groups including firms, governments, institutes and markets, and verify the factors in a statistical analysis based on a survey in a localization experience within a company. We suggest the appropriate methods with special emphasis on technology localization by comparing the proposed factors in different technology transfer models. To this end, we classify the important factors of each model and methods by comparing them with the localization factors we identify. This will help researchers to classify the technology transfer methods corresponding to their localization goal. The findings of this research could lead firms to select the best method for technology localization in the long-term, and align it with development trajectories and future innovations based on the transferred technology. Index Terms: Localization, Technology Transfer, Transferred Technology I. INTRODUCTION AIRMS choose technology transfer methods for industrial development. They aim to obtain the basis of technology and strengthen scientific and operational skills. Technology transfer is expected to provide competitive advantage and lead companies to further innovation and new products through technology. However, companies need to localize technology within their industrial area to reach this goal. They should promote their scientific and technical knowledge, enhance human skills and develop infrastructure. Manuscript received March 5, 2011, revised April 10, 2011. L.Tahmooresnejad is with the Mathematics and Industrial Engineering Department, Ecole Polytechnique de Montreal, Canada, (phone: +1-438-878-9821; e-mail: Leila.Tahmooresnejad@polymtl.ca) R.Salami is with the Management school, Allameh Tabatabai University, Tehran, Iran (e-mail: Rz_Salami@ma-atu.ir) M.A.Shafia is with the Industrial Engineering department, Iran University of Science and Technology (e-mail: Omidshafia@iust.ac.ir) Many factors should be considered in technology transfer to drive companies to localize technology. In this paper, we identify the factors in different groups that affect the success or failure of localization. Comparing the impact factors in different technology transfer methods with localization factors allow companies to find the best way to acquire transferred technology with the aim of localization. In this paper, the methods of technology transfer and the important factors of each method are described in section two. In section three the localization factors identified in four groups - company, government, market and institutes - are discussed. Sections four and five indicate the methodology of the empirical study and statistical test results to rank the factors based on our survey within the case study. In section six, the technology transfer methods for localization brought about by comparing the localization factors and impact factors on technology transfer methods are analyzed. Finally, a conclusion and suggestions for future studies are described in section seven. II. IMPACT FACTORS IN TECHNOLOGY LOCALIZATION Technology transfer assists companies in obtaining a competitive advantage via received technology. Adaptation and absorption of technology through localization processes help companies develop transferred technology and new products. Several factors influence the localization distributed in the company, government, market and institutes (Kumar and Bhat, 2003; Bennett and Zhao, 2004; Nancy, 2005; Caldera and Debande, 2010). Table I indicates all identified localization factors in four groups. Companies undertake the major part of technology transfer and need to prepare their infrastructure and human skills for successful localization through technology transfer. Hence, the most frequently identified factors are dependent upon the company (Wikstrom and Norman, 1994; Naito, 1998; Barclay, 2005). Government policies could accelerate localization and aid companies in developing their new products based on transferred technology. On the other hand, lack of government support may cause the failure of technology and the company or create barriers to further development. Government policies providing demands for new products in the market and legislating supportive regulations for the localization of technology are of great importance to companies (Bennett and Zhao, 1997; L.Tahmooresnejad, R.Salami, M.A.Shafia F Proceedings of the World Congress on Engineering 2011 Vol I WCE 2011, July 6 - 8, 2011, London, U.K. ISBN: 978-988-18210-6-5 ISSN: 2078-0958 (Print); ISSN: 2078-0966 (Online) WCE 2011