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