Between technology transfer and South–South collaboration: an Indo-Cuban experiment in biopharmaceutical innovation

This chapter explores the complexities of international marketing, emphasizing the distinct challenges global marketers face due to the diversity of marketing environments across nations. A key difference between domestic and global marketing arises from the variations in national environments, including economic, cultural, and political factors. Global markets are shaped by factors such as geography, population, climate, trade policies, and government regulations, which collectively influence market potential and opportunities. The chapter highlights the importance of understanding income levels, balance of payments (BOP), and the economic environment in determining a country‘s ability to engage in international trade. Cultural differences play a crucial role in shaping consumer behavior, requiring marketers to adapt their strategies to meet local tastes and preferences while exploring opportunities for standardization. Technological advances, globalization of production and finance, and the rise of global competitors are identified as key drivers reshaping the global marketplace. Companies must remain flexible, responsive, and technologically adept to succeed in this rapidly evolving environment. India is positioned as an emerging player in the global market, thanks to its rich natural resources and a large pool of skilled technical manpower. The liberalization of India‘s economy, initiated in 1992, offers new opportunities for integration with the global economy through foreign investment, joint ventures, and technology transfers. However, challenges such as trade deficits and currency depreciation must be addressed to enhance the global competitiveness of Indian industries. The chapter concludes by discussing the role of strategic alliances and technological collaborations in leveraging India's resources to gain a competitive edge in the global market.

International Joint Ventures and Internal vs. External Technology Transfer: Evidence from China

Purpose: The objective of this study is to examine joint venture, technology transfer on the performance of Nigeria's oil and gas sector between 1981-2021. Theoretical Framework: It is indisputable that the Nigerian oil and gas sector is not at peak performance when compared to what is obtainable from its peers in the Organization of Petroleum Exporting Countries (OPEC) (Iheukwumere, 2021; OPEC, ASB 2020). One of the factors responsible for the abysmal performance is ineffective and incoherent technology transfer management through joint venture arrangements (Odusina, 2022). Therefore, there is a need to empirically investigate the impact of joint venture arrangements on Nigeria's oil and gas sector production which lacks sufficient research. Methodology: The ex-post facto design was used where data were collected through secondary sources on the aggregate output of the joint venture companies and the total yearly output of the upstream sector of Nigeria’s oil and gas industry represented the performance of the Nigerian oil and gas sector in the period 1980 to 2021. The collected data were analyzed using the Quantile Autoregressive Distributed Lag (QARDL) approach to test for short and long-run impacts. Findings: The study revealed that there is a significant impact of joint venture arrangements on oil and gas production in both the short run and long run. Research, Practical & Social Implication: The study therefore recommends that policymakers and industry stakeholders should carefully evaluate the terms and conditions of joint ventures to ensure their alignment with the goals of maximizing oil and gas production. Originality/Value: The use of joint venture as a proxy for technology transfer in the production of oil and gas in Nigeria and use of secondary data between 1980-2021 for joint ventures is an eye-opener for further exploration of the study areas in oil and gas production management, particularly in the area of technology transfer, which lacks sufficient research.

Efficiency of Revenue Sharing Joint Ventures with Capacity Investment Decisions and Spillovers

International joint ventures between contractors in developed and developing countries are recognized as a potential means of enhancing the construction expertise of nationals of developing countries, and offer many advantages and disadvantages to its partners. This paper reports on the technology transfer experiences of eight top UK contractors in joint ventures with contractors from developing countries. Twelve joint ventures, categorized into geographical regions, are used as case studies. The rationale for regional and inter-regional variations are analysed and discussed. The issues addressed are the need for technology transfer and the mechanisms used to transfer technology on these joint ventures. The difficulties experienced in transferring technology are discussed, with suggestions to minimize these difficulties with the aim of improving the technology transfer process on future projects. The conclusions show UK contractors are eager to demonstrate that they transfer technology but it only works t...

Technology transfer is an important element in ensuring the growth of technological development and competitiveness of the modern enterprise. Joint venture as one of the specific forms of technology transfer gives participating companies the opportunity to attract significant investment, new management technologies, stimulates the production process of competitive products and facilitates technological exchange. Today, the problem of participation in various forms of joint ventures, which is an appropriate method of achieving competitive advantage through cooperation, is becoming relevant for the development of domestic enterprises. Solving problematic issues requires detailing the limitations of joint ventures and researching the areas of common interests of its subjects. The aim of the study is to develop an effective model of intensifying technology transfer in the form of joint ventures based on the interaction of partner entities. The spheres of independent interests of the subjects of joint venture are researched and determined, the factors of guaranteed result are determined. The basis for the analysis was the scientific studies of domestic and foreign scientists on this issue. The theoretical and methodological basis of the study is a set of principles and methods of scientific research: the principle of systematization and theoretical generalization, methods of structural and functional analysis. The results of the study showed that the conflict of interests of the subjects of joint venture arises in situations where there is a tendency to integration and the subjects expect to get a certain guaranteed result. It has been proved that a necessary condition for ensuring mutually beneficial cooperation of individual joint ventures is the existence of a guarantee of useful results, and partnership within the joint venture is based on common interests and goals to be achieved in the results of activities and aimed at consolidating cooperation of individual participants through joint ventures. The implementation of the developed model of enterprise development based on the intensification of technology transfer, which describes the continuous changes in the process of functioning of the form of joint venture over time, can have a useful effect on its successful operation. The practical value of the model is that individual entities, regardless of their own economic policies and the nature of their interests, have a common area of compromise in which they can conduct joint ventures.

PurposeThe purpose of this paper is to describe the timing of management control systems (MCS) implementations, their drivers and effect on joint venture (JV) survival.Design/methodology/approachThis paper draws on case study data (archival data, interviews, and site visits) collected at three JVs in the automotive industry. Contingency theory is used to define Cartesian relationships.FindingsA description of the timing and reasons for MCS implementation in JVs is provided. Initially, environment, strategy, and partner culture are considered to implement governance mechanisms and transfer prices/cost allocations for long‐term transfers of technology and corporate services. Later, structural and technological factors are considered to implement operative MCS such as budgeting, transfer prices/cost allocations of manufactured parts and performance measurement.Research limitations/implicationsAll three JVs studied: belong to the automotive industry (SIC 3174); have balanced ownership (50/50); and have one partner in common (a European family‐owned business with professional management). Data are obtained mainly through site visits, five interviews, five mailed questionnaires, and public and private archival data.Originality/valueThe paper is the first to offer a descriptive model of the timing of MCS implementation in 50/50 JVs explained by the effect of contingent factors in each stage of the JV life and in JV survival.

In the face of rising energy demands, environment related issues and growth of its economy, the renewable energy is at the core of India’s energy security. In India fossil fuels have become too unsustainable, India has gone to embrace renewable energy as an option that is not only viable but necessary. However ambitious domestic policies are in place, such as the National Solar Mission, with a target of 500 GW of renewable capacity by 2030. Yet India’s journey to renewable energy is one that it cannot embark on alone, global partnerships are essential in catalyzing this revolution. For example, India has taken advantage of its place as a world class leader in renewable energy with the creation of the International Solar Alliance (ISA) to advance the adoption of solar energy through collaboration with over 100 member countries. Technology transfer, investments and collaborative research on hydrogen and offshore wind have been catalyzed through bilateral engagements with the US, Germany and Japan. In addition to this, India’s renewable energy diplomacy has also been bolstered through regional and South- South collaborations, with partnerships to African and SAARC countries. India’s role in global energy governance has been amplified through its participation on multilateral forums such as the G20 and International Renewable Energy Agency (IRENA). On the other hand, domestic expansion of renewable energy is abetted by public-private partnerships, along with modern technological integration. Credentials are challenged through financing and grid integration, yet India is actively pursuing renewable energy diplomacy, a key symbol of its devotion to global sustainability and securing a healthy energy future for all. Domestic priorities of India are being aligned with international collaboration creating a future where inclusive, resilient and sustainable energy systems address national and global needs.

The author surveys the literature on trade and foreign direct investment--especially wholly-owned subsidiaries of multinational firms and international joint ventures--as channels for technology transfer. He also discusses licensing and other arm's length channels of technology transfer. He concludes: 1) How trade encourages growth depends on whether knowledge spillover is national or international. Spillover is more likely to be national for developing countries than for industrial countries. 2) Local policy often makes pure foreign direct investment infeasible, so foreign firms choose licensing or joint ventures. The jury is still out on whether licensing or joint ventures lead to more learning by local firms. 3) Policies designed to attract foreign direct investment are proliferating. Several plant-level studies have failed to find positive spillover from foreign direct investment to firms competing directly with subsidiaries of multinationals. (However, these studies treat foreign direct investment as exogenous and assume spillover to be horizontal-when it may be vertical.) All such studies do find the subsidiaries of multinationals to be more productive than domestic firms, so foreign direct investment does result in host countries using resources more effectively. 4) Absorptive capacity in the host country is essential for getting significant benefits from foreign direct investment. Without adequate human capital or investments in research and development, spillover fails to materialize. 5) A country's policy on protection of intellectual property rights affects the type of industry it attracts. Firms for which such rights are crucial (such as pharmaceutical firms) are unlikely to invest directly in countries where such protections are weak, or will not invest in manufacturing and research and development activities. Policy on intellectual property rights also influences whether technology transfer comes through licensing, joint ventures, or the establishment of wholly-owned subsidiaries.

How much a developing country can take advantage of technology transfer from foreign direct investment depends partly on how well educated and well trained its workforce is, how much it is willing to invest in research and development, and how much protection it offers for intellectual property rights. Saggi surveys the literature on trade and foreign direct investment - especially wholly owned subsidiaries of multinational firms and international joint ventures - as channels for technology transfer. He also discusses licensing and other arm's-length channels of technology transfer. He concludes: - How trade encourages growth depends on whether knowledge spillover is national or international. Spillover is more likely to be national for developing countries than for industrial countries. - Local policy often makes pure foreign direct investment infeasible, so foreign firms choose licensing or joint ventures. The jury is still out on whether licensing or joint ventures lead to more learning by local firms. - Policies designed to attract foreign direct investment are proliferating. Several plant-level studies have failed to find positive spillover from foreign direct investment to firms competing directly with subsidiaries of multinationals. (However, these studies treat foreign direct investment as exogenous and assume spillover to be horizontal - when it may be vertical.) All such studies do find the subsidiaries of multinationals to be more productive than domestic firms, so foreign direct investment does result in host countries using resources more effectively. - Absorptive capacity in the host country is essential for getting significant benefits from foreign direct investment. Without adequate human capital or investments in research and development, spillover fails to materialize. - A country's policy on protection of intellectual property rights affects the type of industry it attracts. Firms for which such rights are crucial (such as pharmaceutical firms) are unlikely to invest directly in countries where such protections are weak, or will not invest in manufacturing and research and development activities. Policy on intellectual property rights also influences whether technology transfer comes through licensing, joint ventures, or the establishment of wholly owned subsidiaries. This paper - a product of Trade, Development Research Group - is part of a larger effort in the group to study microfoundations of international technology diffusion. The study was funded by the Bank's Research Support Budget under the research project Microfoundations of International Technology Diffusion. The author may be contacted at ksaggi@mail.smu.edu.

Goal. In the modern economic system, a significant role is played by the development of new technologies, which are the driver of innovation. The changing nature of technology and knowledge transfer between the academic and industrial sectors is also a prominent area of study. However, there is no effective interaction system between researchers producing new technologies with commercialization potential and enterprises in the commercial sector, designed to enhance the innovative development of the economy. This article discusses the strategic meaning of the participation of various technology transfer market agents in the process of interaction between innovators and enterprises in the field of commercialization. A strategic approach to the main groups of participants and stakeholder analysis ensures high-quality ownership of the received technology and minimizes risks during the entire stage of the technology transfer implementation. A carefully verified description of technological capabilities in terms of their unique components and features allows the business to understand what might be the potential basis for its future competitive advantage. Methods. In this article, using such general scientific methods of cognition as analysis, synthesis and induction, we analyze the value orientations of a technology transfer market participant. The authors concluded that ignoring the interest of each agent in the technology transfer market can reduce the synergistic effectiveness of government measures and mechanisms to support the technology transfer process. As a result of the study, the values of the participation of key innovation actors in the technology transfer process were identified.

R&D is one of the most important sources of knowledge and economic growth worldwide, and technology transfer is the principal means to access this knowledge. Nevertheless, market imperfections, externalities, and abusive behaviors have been used by some jurisdictions to justify the enactment of regulations on different contractual categories frequently used to implement this transfer of technology. According to the UNCTAD 2001 report, technology transfer agreements encompass an array of agreements differentiated by their subject matter. Such contracts cover, amongst other things, industrial property, know-how, and technology expertise.1 Most of the doctrine considers technology transfer agreements as an autonomous contractual category due to their standard features,2 such as their bilateral character, the reciprocal rights and obligations between the parties, and the presence of intellectual property rights.3 Thus, the agreements that belong to this category are often determined by the existence of intellectual property rights and know-how. These rights mainly protect useful knowledge that can be exploited in the market by its legal owner or the person who is authorized to do so. The exploitation of intangible assets is carried out using different sorts of contracts, frequently not regulated by law or other statutes and sometimes with a high degree of complexity, depending on the relevant technical matter and the parties’ activities. However, nowadays, despite the lack of specific regulation for most of these types of agreements, they are frequently used in the market and are indeed the licensing agreement that is most used and one of the few that are regulated in some jurisdictions.4 In the same sense, it is essential to highlight the presence of other contracts; for example, it is possible to find features of a trademark license, the sale of products, distribution, or even agency in a franchise agreement. This presence occasionally leads to difficulties in the construction of the parties’ will when there is silence or poor wording on the obligations to be performed. Concerning the construction of the contract, there are different forms that a technology transfer agreement may assume. In this regard, we must point out that the lack of legal classification5 means that it is necessary to use various sources, such as case law, arbitration awards, decisions of administrative bodies, and of course doctrine to carry out a complete analysis of these contracts. For the purpose of this study, a technology transfer agreement is to be considered as the transaction that allows a party to access a technology owned by the other party in exchange for consideration. This article’s main objective is to show how technology transfer occurs through licensing agreements in other complex contracts like joint ventures and franchising agreements. In order to illustrate this transfer of technology, we will throughout this article use statutes and case law of the European Union, the United States, and the Andean Community (CAN). The aim is to present, initially, the scope of the expression technology transfer; we will then examine how these three legal categories work, the relationship between these complex contracts and licensing, and finally, the importance of using the structure of licensing in joint ventures and franchising agreements adequately.

Science and Business Developments

OVERVIEW: Establishing a venture in the People's Republic of China is complex and time consuming because of the differences between China and the West in managerial philosophy, market systems, industrial infrastructure, and motives for creating the venture. Acquisition of advanced technology is a predominant concern for China. As a result, technology transfer is almost always a key step in running a venture in China However, in practice there are many unexpected problems in the technology transfer process because of the specific Chinese situation. Currently there is increasing interest in building up ventures in China, which leads the authors to discuss the key issues for management in the process of technology transfer to China via ventures. Since the introduction of the open door policy in 1978, Chinese industrial production has increased annually by an average of 12.4 percent (1). After the Joint Venture Law was issued in 1979, China began introducing laws and regulations to establish an institutional and legislative infrastructure to stimulate foreign investment. Institutional changes include the creation of such organizations as the China International Trust and Investment Corporation, the decentralization of decision making powers and the establishment of the Special Economic Zones (2). Between January 1979 and June 1991, there were 34,080 foreign-funded projects in China, involving a total contractual investment of U.S.$ 44,800 million, with U.S.$ 20,568 million actually invested. Among these projects, 18,790 were Chinese-foreign ventures worth U.S.$ 17,470 million, of which a reported U.S.$ 9,940 million has actually been realized (3). Participation in the Chinese market is an important strategy for many multinational firms from the U.S., Japan and Western Europe. Since the beginning of the 1980s, Hong Kong and Japanese firms have invested in the textile, electronics, medicine, food, and motorcycle industries. Subsequently, American and European investments in the Chinese market have increased significantly. Apart from the sectors mentioned above, American and European firms have been active in the automobile, chemical, machinery, and coal industries. In order to produce the required products for its local market and for the international market, Chinese firms have to develop or acquire technology. Also, the application of this technology, or more generally the management of the production system, has to be developed. Because the development of technology is an expensive process which requires specific experience currently not available in China, and which takes a long time to develop, the transfer of technology is a logical route to acquire it. The Chinese desire to create industrial ventures in order to acquire advanced technology, hard currency and management expertise. While there are various vehicles for the transfer of technology (e.g., licensing and contract ventures), the equity venture is often selected because it allows the foreign partners to realize their major objective: participation in the Chinese market while keeping control over the activities (4). The April 4, 1990 amendment to the Law of the People's Republic of China on Joint Ventures Using Chinese and Foreign Investment, concerning nationalization or requisition of ventures, extending the term of the ventures, choosing the chairman of the board of directors and joint ventures bank accounts stresses the importance the authorities nowadays give to the establishment of ventures (5). Previous studies focused on identifying the different types of ventures in China and their internal structures, and less on the practical problems of managing the ventures effectively (6). With these studies as a basis, the aim of this paper is to identify a number of practical management problems foreign firms face in the transfer of technology to their ventures in China. …

Since China's implementation of its open-door policy in 1979, the most effective way to obtain a foothold has proved to be to create joint ventures (JV) with a Chinese business partner. The foreign partner provides the transfer of technology, management skills, financing and access to international markets, whilst the Chinese partner contributes a production base with cheap land and labor, contacts with central and local government officials and access to the domestic Chinese market. The Chinese economy has benefited to a large extent from the creation of joint ventures in the past two decades. Hong Kong firms have used China as a production base for many years, usually with great success and to the mutual benefit of both. However, although Hong Kong firms had considerable experiences in running business and manufacturing operations in China, several have suffered substantially from their investment in joint ventures with Chinese partners. This paper evaluates various issues relating to the performance of equity joint ventures in China. The evaluation is based on a case study of four Sino-Hong Kong joint venture manufacturing firms in the electronics industry, and the findings of this paper indicate that there are number of important factors affecting the stability of joint ventures in China. Foreign investors' experiences in other areas may not be applicable to their investment in China because the operation of a joint venture in China is inevitably faced with a variety of problems that the foreign firms may not have encountered before.