Plan of Discussion
Negotiations: Win -Win Game
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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
Industry
(Manufacturing/
Production/Services )
T
& inn
. Innovation
&Innovation
Technology development
Innovation
Science Research
S&T Infrastructure + Human Resource
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 )
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Improved Support for Technical education
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Internship Programmes
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Exchange Programmes
Forum: UNESCO and UNDP
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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
Market/Users
M4
M5
Corporate has to synchronise Ms
M1:
Machine, Know How
Technology
M2
Materials
INNOVATION
M3
Management
M5
Market/User
M4
Money
INNOVATION = Synchronization of Five Ms
How does corporate organise
R&D
Servicing
Risk Area
Proto-typing
Selling
Manufacturing
Initiation
Commodification
Actors Fragmentation
(Smile Curve: Nikkei-Japan)
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:
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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
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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