International Technology Transfer: Making a case for Transfer from New Zealand to Indian Dairy industry

Abstract

Despite being a small country, the use of top grade technology available in the world has made the New Zealand (NZ) dairy industry the largest exporter of dairy products around the world. The key strengths of the NZ dairy industry have been attributed to large-­‐scale processing, and engagements in research and development activities leading to high operational efficiencies in the industry. The Indian dairy sector on the other hand, cannot export dairy products in the world market, despite being the largest producer of milk. The quality standards of the Indian dairy sector inhibit the industries place in the global market and also present significant risks for consumers within the Indian market. Thus, it poses a significant opportunity for NZ to engage in technological transfers for improving the quality standards of the Indian dairy sector that would foster mutual gains for both economies. The aim of this research is to determine how NZ would gain by engaging in technological transfers to India. A comprehensive review of the literature and case studies on international technology transfer, quality management in the NZ and Indian dairy industries, and the Free Trade Agreement has been undertaken, which is then assessed against the qualitative data collected through key industry leaders of India and NZ. The main contribution of this research stems from the fact that for the first time the theory of international technology transfers has been applied to NZ and Indian dairy industries by carrying out a qualitative assessment. Some of the key theories of international technology transfer previously assessed through traditionalist means of quantitative research have now been evidenced through qualitative empirical accounts. The study confirms that NZ (Fonterra) would stand to gain from technological transfers to India. Fonterra envisions a number of areas where it has the potential to share its expertise with the Indian dairy industry. This would assist the Indian dairy sector to alleviate from major challenges India faces in successfully managing their quality standards. However, Fonterra sees the barrier to trade as an important impediment for making such investments. It would be in the interests of the Indian government to open its market to NZ for trade in the dairy sector in order to gain access to key knowledge and technological initiatives Fonterra and the NZ government take for mutual gains.