Technology Transfer within Related Offset Business : From an Aircraft Production Perspective

The aircraft industry is viewed as a prestigious industry by many countries. Emerging economies regard the establishment of aircraft production capabilities as contributing to their competitiveness and technological development. Therefore, in the defence aircraft industry, politics play a key role in competitiveness. Governments can strategically trade market access for technological development, often in the form of offset business. “Offset” is defined as an agreement in which a large system is bought and the seller assumes obligations that both benefit the buying nation and have long-term effects on the development of the buyer’s national industry. When the offset obligations are directly connected to the product or system sold, they are called “related offsets”. The realization of an offset agreement is in most cases including some form of technology transfer. Technology transfer is the transfer of technology from a sending company to a receiving company, where it is implemented and adapted to use. The empirical data presented in this thesis were gathered through six in-depth studies performed at the unit for aircraft production at the Swedish company Saab. The findings from the studies are presented in six appended papers. The objective of this thesis is to extend the current understanding of technology transfer realization connected to related offsets within the defence aircraft industry. The research objective is fulfilled through the addressing of two research questions. The first research question aims to identify factors that can have a major effect on technology transfer realization in the research context. As an answer to the first research question. Following factors were identified: Capability gaps, Knowledge transfer, The purpose of related offset business, Seller’s fulfilment of offset obligations before contract termination, Related offset business include hierarchical levels, Related offset work package identification to meet the buyer’s request, and Assessment of the receiver in two steps, and finally Cultural and communication challenges. These factors set the basis for research question two. The second research question addresses how to manage future related offset technology transfer realization connected to aircraft production. As an answer to the second research question, a structured related offset process and facilitation tools for managing capability gaps between the sending and the receiving company was presented. The purpose of the suggested structure is to maintain the link between the negotiated related offset agreements and the employees, working to achieve the agreement within the realization of the technology transfer.