Technology transfers in complex systems: An assessment of risks associated with training and knowledge management

Offsets policy in sovereign technologies has evolved with the changing needs of States in terms of production and technology. Today States not only want to acquire complex systems such as weapons, transportation systems or energy system, they also want to produce them domestically and to master related technology. In past years, in offsets literature, technology transfers were considered as subproducts of defence systems negotiated in contracts. Today, technology transfers can be seen as a complete and strategic product that States want to achieve technological leaps to become more independent regarding maintenance and retrofit processes in the whole life-cycle of systems. As a consequence, the industry is adapting both its organization and supply chain to respond to market trends, especially with the integration of training in technology transfers contracts. This paper aims at assessing risks associated with training issues in technology transfers in the case of sovereign technologies. What is at stake for both States and firms that are involved in technology transfers? What is the potential loss of knowledge in the practice of training activity in technology transfers? Regarding this loss of knowledge, what are the riskiest channels in the training process for firms? What kind of strategies can firms develop to cope with the loss of knowledge? How to manage training in technology transfers? Our qualitative method is based on interviews with trainers involved in technology transfers in a panel of strategic French firms (energy, defence, transport). We conducted around 40 interviews in order to catch the perception of trainers regarding the risks associated with their activity and built a typology of "risky situations" where information and knowledge were not well controlled by firms. Our results show that firms involved in technology transfers should focus more on ex post stages of technology transfers contracts in order to master knowledge or at least reduce leaks of knowledge. We finally suggest some recommendations to firms to improve the management of training in a context of technology transfers.