Technology export includes transferring industrial property rights, know-how, and granting licenses related to technology and business management. It allows firms to enter foreign markets quickly with fewer risks than wholly-owned subsidiaries. Joint ventures are collaborative partnerships between two or more companies, where resources are shared to achieve common goals. Selecting the right partner, properly structuring the agreement, and learning from each other are keys to success. The case study of SBOC, a joint venture between a Chinese and British company, thrived due to consensus decision making, quality focus, and patience to achieve long-term growth.

1. TECHNOLOGY EXPORTS AND
JOINT VENTURES

2. TECHNOLOGY EXPORT
It is an export of technology which is normally implemented by
concluding various types of technology transfer agreements.
Technology export can be - technological disclosure, technical
guidance, technical assistance, technology assignment, and
licensing.
Although there is no fixed interpretation or definition of a technology
transfer agreement, Article 30 of the Foreign Transactions and
Foreign Trade Act ,which sets out the provisions regarding
technology introduction contracts -a type of technical assistance
agreement ,which pertains to the transfer of patent rights and other
industrial property rights related to technology, the establishment of
the license and the right to exploit and use these rights or guidance
on technology related to business management.

3. TECHNOLOGY LICENSING
• Technology licensing is a contractual arrangement
in which the licenser's patents, trademarks,
service marks, copyrights, or know-how may be
sold or otherwise made available to a licensee for
compensation negotiated in advance between the
parties.
• Such compensation, known as royalties, may
consist of a lump sum royalty, a running royalty
(royalty based on volume of production), or a
combination of both.

4. TECHNOLOGY LICENSING
• Companies frequently license their patents,
trademarks, copyrights, and know-how to a
foreign company that then manufactures and sells
products based on the technology in a country or
group of countries authorized by the licensing
agreement.

5. TECHNOLOGY LICENSING
• Technology licensing agreement usually enables y
firm to enter a foreign market quickly, and to
poses fewer financial and legal risks than owning
and operating a foreign manufacturing facility or
participating in an overseas joint venture.
• Licensing can be a particularly attractive method
of “exporting” for small companies or companies
with little international trade experience, even
though small and large firms profitably use this
technique.

6. TECHNOLOGY LICENSING
• Technology licensing may also be used to acquire
foreign technology through cross-licensing
agreements or grant-back clauses that award
rights to improved technology developed by a
licensee.

7. Technology export includes:
1) Transfer of industrial property rights and other
rights related to technology (know-how)
2) Granting of licenses pertaining to industrial
property rights and technology (know-how)
3) Guidance on technology related to business
management.
4) Granting of licenses pertaining to patent rights
and utility model rights
5) Granting of licenses pertaining to currently
claimed inventions and devices
6) Granting of the right to use know-how

8. Objectives of Technology Export
1) Avoid infringement of another’s patent rights and
other intellectual property rights.
2) Enable access to know-how, which is normally
information kept secret by the other party.
3) Earn royalties, make business safer, and raise
cost performance (buy time).
4) Opportunities for licensing agreements… When,
where, and how.

9. Need of Technology Export
1.Offer Technical Assistance (licensing-out)
2.Receive Technical Assistance (licensing-in).

10. Offering technical assistance (licensing-out)
1) Technology transfer offers another useful means
of earning besides the production and sales of
products (= open innovation).
2) Companies can receive a higher reputation for
their technological power that they can offer to
other companies as technical assistance.

11. Offering technical assistance (licensing-out)
3) Surplus or idle technologies can be
commercialized to reimburse technological
development expenses and maintenance fees
incurred for those technologies.
4) Companies can receive a grant-back for improved
technology developed by their licensees.
5) Technology transfer plays an important role in
international strategies.

12. Receiving technical assistance (licensing-in)
1) Cost performance increases because there is no
need for technological development.
2) Time required for technological development
can be reduced, and the company’s position as
the head starter can be secured.
3) Infringement of other companies’ rights can be
avoided by obtaining a license.

13. Receiving technical assistance (licensing-in)
4) Companies’ weak points can be made up for.
5) Access to and the right to use other companies’
secrets and useful information can be obtained.

14. ADVANTAGES OF TECHNOLOGY EXPORT
• Can create fortunes worth billions of dollars for the exporters
as well as the early adopters .
• Technology can be adopted by developing countries to
improve living standards and security .
• Turn key projects can enable to exploit the expertise without
investing much in R&D and enable them to save on time.
• Exports of technology by developing countries can serve as an
indicator of their technological development
• It encourages local technological capabilities of the importer .

15. DISADVANTAGES OF TECHNOLOGY
EXPORT
• One negative aspect of licensing is that control over the
technology is weakened because it has been transferred to an
unaffiliated entity .
• In certain developing countries, there also may be problems in
adequately protecting the licensed technology export from
unauthorized use by third parties .
• It is not feasible to export all the technologies..eg developed
countries are cautious while exporting nuclear power related
technologies and products to developing countries .
• Adopters may innovate and surpass the actual technology
exporting entity

16. CONTINUED
• European Union & other western nations have strict
protectionist laws that affect technology licensing .
• Restricts the copying of patents , technology know-how
and other intellectual property rights .
• Because of the potential complexity of international
technology licensing & exporting agreements, firms
should seek qualified legal advice.
• do not reveal the whole range of technical progress under
way in the exporting countries, but do provide examples
of technical learning where the technology has been
assimilated, reproduced,

17. CASE STUDY : EXPORT OF AWACS TO INDIA BY ISRAEL
• ISRAEL exported 3 AWACS ( Airborne Warning & Control
Systems) for $ 1.1 bn
• India joined the global ranks of the AWACS operators .
• To provide broad spectrum crystal clear scan of air threats and
illegal Indian airspace entry even in worst climatic conditions .
• The system can receive transmissions from other air and
ground stations to round out its surveillance picture, and uses
sensor fusion to provide a complete picture of the battlespace
out to 500 kilometers.

20. Joint Venture is a win /win collaboration between two
or
more people, sharing resources to solve common
problems and achieve goals.
No limits, no catch, no selling, no manipulation, no risk.
It can be called a Strategic Alliance or Partnering as
well.

21. Joint VentureJoint Venture
Joint Venture
Company
Inputs
MNE
LOCAL
FIRM
HOME
COUNTRY
HOST
COUNTRY
Inputs
Share of Profit
Share of
Profit

36. DEVELOPING JV

37. Finding ideas or partners
• In the era of the Internet, finding opportunities for exploiting an idea
is sizeable together with remote, or advertised, communicating.
• There are also the blogging networks as well the social networking
sites and search engines.
• There are also other venues to find a JV partner such as seminars,
exhibitions, directories and the plain newspaper advertising of
opportunities.
• One should not forget websites which have become prosperous like
eBay and Amazon.com, Wikipedia, YouTube to name the most
obvious. Forming JVs with distributor and marketing agencies is
possible in this flat world to market a product. But finding an
entrepreneur for a JV is another task.
• Nonetheless, there are risk-takers- venture capitalists, angel
investors and venture managers (see: Carried interest) – especially in
the high-tech industries like IC chips or biotechnology.

38. Preparation
• One can here only underline the steps or information
that will be needed by the JV candidate. They are:
– the objectives, structure and projected form of the joint
venture, including the amount of investment and financing
arrangements and debt
– the JV's products, their technical description and usage
– alternate production technologies
– estimated cost of equipment
– estimated technology transfer costs
– foreign exchange projections (where applicable)
– staff requirements and trainingfinancial projections
– environmental impact

39. SELECTING PARTNERS
• The ideal process of selecting a JV partner
emerges from:
– screening of prospective partners
– short listing a set of prospective partners and some
sort of ranking
– due diligence – checking the credentials of the other
party
– availability of appreciated or depreciated property
contributed to the joint venture
– the most appropriate structure and invitation/bid
– foreign investor buying an interest in a local company

40. INCORPORATION
• A JV can be brought about in the following
major ways:
– Foreign investor buying an interest in a local
company
– Local firm acquiring an interest in an existing
foreign firm
– Both the foreign and local entrepreneurs jointly
forming a new enterprise
– Together with public capital and/or bank debt

41. SHAREHOLDERS AGREEMENT
• This is a legal area and is fraught with difficulty as the laws of countries
differ, particularly on the enforceability of 'heads of' or shareholder
agreements.
• For some legal reasons it may be called a Memorandum of
Understanding. It is done in parallel with other activities in forming a JV.
• Some of the issues in a shareholders' agreement are:
– Valuation of intellectual rights, say, the valuations of the IPR of one partner
and,say, the real estate of the other
– the control of the Company either by the number of Directors or its "funding"
– The number of directors and the rights of the founders to their appoint
Directors which shows as to whether a shareholder dominates or shares
equality.
– management decisions - whether the board manages or a founder
– transferability of shares - assignment rights of the founders to other members
of the company
– dividend policy - percentage of profits to be declared when there is profit

42. EXECUTE AND
REAP THE REWARDS!

44. CASE STUDY

45. Shanghai BOC (SBOC)
• Established in 1988
• Between Wusong Chemical and British
Oxygen Company (BOC)
• Production of industrial gases
• In 1995
– net profit 5%
– turnover growth 8.4%

46. • SBOC (continued)
• Organization structure
– a board with 8 rep (half-half), one foreign and
one local general manager.
• Skills
– seek good employees with good training
• Successful factors

47. • Planning for future growth
– not able to meet 8 year payback but patience
– one half of the revenue used for R & D
– Raise additional capital of $30 million bank
loan to build gas processors at the customer’s
cites as marketing strategy
• Learning from the foreign partner
– able to learn new technology and practices
– focus on quality of product
– decisions are based on consensus and
consultation

48. Problems
• Increasing need for capital -thread for
wholly-owned subsidiary from BOC
• FX imbalance low foreign earnings due to
low volume of exports
• Sourcing and retaining staff
– below market salary
• Cultural differences
– - expatriate cannot speak Chinese

49. Partner selection
• Additional financing flexibility
• Modern management practices
• Technology transfer
• Location
- labor, materials, transportation
Successful factors for Joint Venture

50. • Sony-Ericsson is a joint venture by the Japanese consumer
electronics company Sony Corporation and the Swedish
telecommunications company Ericsson to make mobile
phones. The stated reason for this venture is to combine
Sony's consumer electronics expertise with Ericsson's
technological leadership in the communications sector.
Both companies have stopped making their own mobile
phones.
• Virgin Mobile India Limited is a cellular telephone service
provider company which is a joint venture between Tata
Tele service and Richard Branson's Service Group.
Currently, the company uses Tata's CDMA network to offer
its services under the brand name Virgin Mobile, and it has
also started GSM services in some states.

51. Not so successful cross border
ventures.
• Mahindra-Renault joint venture
• In a joint venture between the two
companies, 51 per cent of the stake is held by
Mahindra and Mahindra while the rest of 49
per cent is being held by French car maker
Renault. But their first car Logan was a failure
because of technical reasons as well as stiff
competition from other makers. So this is the
example of a not so successful joint venture