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 Technology National 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 Innovations Middle 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 with M1: Know how suppliers M2: Material suppliers M3: Manpower sources M4: 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 technology Harness innovative power of R & D Access tacit, socially complex knowledge

2. Enhance market power Expand market footprint to new geographic regions or customer groups Eliminate 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 fundraising Not much stress on managerial responsibility Move toward financial liquidity

SUMMARY FOR SELLERS Paying attention to buyer overtures Evaluating fit Being realistic in negotiations Promoting momentum and serendipity

Empirical Support Case study support Complementary for synergy: Degree of overlap in patenting histories. Similarity in knowledge