Plan of Discussion
Negotiations: Win -Win Game
• Who all are involved in technology • Negotiations Levels in Technology• What do they Negotiate• How to they negotiate
• Examples
Actors and Agencies in TechnologyNational Level and
Micro Level ( individual organisations/industry )
• Different Priorities : Stage of development
• Win -Win requires :Understanding of interests of both parties
National Level
National Innovation System
Important Points
• Purposes of activities in different segments are different• Actors and agencies are different• Policy regimes are different
Technology requires linkages So: Negotiations between segments: within the country
If Internal Mismatch: Failure in Negotiations with outside
Stages of Development Technology Collaboration Agenda
Which Segment gets emphasised ? Depends upon: Political & Economic Environment
• Example of Negotiations between India and Japan over time • Extrapolate to other country( countries)
What do they Negotiate(Lower Segment)
Human Resources (all types )
• Improved Support for Technical education• Internship Programmes• Exchange Programmes Forum: UNESCO and UNDP
• Visa restrictions & Free Flow of Professional Services: Forum: WTO Agreement on Trade in Services
Technology InnovationsMiddle Segment( National )
WTO’s Agreement on Trade -Related Aspects of Intellectual Property Rights(TRIPS)
• Patents • Support for Collaboration between Public Sector R & D for Global Public Good
(Agriculture, Health, Environment, Global Warming)
Negotiation Issue• Modifications in Patent rights
Emerging Issues• R & D Units of Foreign Companies
Internal Negotiating issue: How do we get spin-off R & D capabilities
• Employee embodied knowledge Issue:
Trade secret laws & freedom to Changing of jobs
• Restrictions on Reverse Engineering
Manufacturing/Industry/ Services
Upper Segment Main Actors
Commerce /Industry/Service Actors
Starting Point Corporate Sector
Technology: The Corporate View
•What does corporate do?
It produces products or delivers services
It wants to expand its user or adopters base
What all goes into Production?
Machine/Know How: M1
Material & Energy: M2
Manpower/management M3
Money M4
Market/Users M5
Corporate has to synchronise Ms
How does corporate organise
Negotiation Portfolio/Issues
Corporate has to negotiate in India and Abroad withM1: Know how suppliersM2: Material suppliersM3: Manpower sourcesM4: Financiers
M5: Marketing and servicing agents
Issues for Negotiations
Trips Covers:• Copyrights: Imprt. For Entrainment Industry • Trade Marks: Marketing • Geographical indicators: Food/ Wines etc industry• Industrial Designs: Products/ Commoditisation• Patents: Industrial Manufacturing/ Pharmaceuticals • Lay Out Designs: Software Industry• Undisclosed Information: Human Mobility
Case Study
• Capabilities built for different Ms, different segments and linkages :
• Sourcing R & D • Sourcing finances:• Accessing Markets: • Alliances/linkages : ‘Public’: India & Abroad Private: India and Abroad
Tips in how to negotiate
• Win - win conditions: Know your situation and that of the other party ( Your objective and their objective)
• Consult all stake holders within: Team/ Trade Association ( Example ) • Try to focus on Specific Issues• Cultural differences : often country/ organisation specific
• Socialisation is important
Know Your Client
• What is his motivation?
• Doe your offer match with his motivation?
• The two motivations require win-win situation
Technology Acquisitions: Buyer and Seller Motivations
BUYER •Motivation Rationale for Acquisition•1.Add strategically valuable resources:Rapidly obtain products and technologyHarness innovative power of R & DAccess tacit, socially complex knowledge
2. Enhance market power
Expand market footprint to new geographic regions or customer groupsEliminate current and potential rivals
Move toward financial liquidity
Strategic Advantage
Provide opportunities for resource reconfiguration and recombination of technologies
Unfreeze “mental maps” and enable adaptation of new technology
SELLER
Add strategically valuable resources(At the right time )
Offer: Necessary resources, Quickly with little risk and uncertainty of additional fundraisingNot much stress on managerial responsibilityMove toward financial liquidity
SUMMARY FOR SELLERS
Paying attention to buyer overturesEvaluating fitBeing realistic in negotiationsPromoting momentum and serendipity
Empirical Support
Case study support
Complementary for synergy:Degree of overlap in patenting histories.
Similarity in knowledge