Technology Development and Transfer 57
6. Turnkey agreement: In this method, generally contractor is responsible for all the
procedure related to the transfer of technology like design, financing, equipment
supply, etc. The involvement of a single contractor is both harmful and useful. On
one hand, involvement of a single contractor ensures fixed price, efficient technology,
full responsibility while on the other hand any mistake or careless on contractor's
part may lead to project suspension.
7. Foreign company acquisition: This method is now in the trend where big companies
acquire start-ups by which all the technology-related to the start-ups automatically
transfers to the company. It makes the reach of the company to the mind of young
8. Buy-back contract: In this method, the foreign company (mainly of developed
countries) supplies industrial high tech equipment to the developing countries in
exchange for the profits gained from the sale of a product from those equipment. It
helps developing countries in establishing high-tech infrastructure and helps foreign
companies in reaching a new market.
9. Original equipment manufacturer: In this method local firms start producing as
per foreign company specifications. Foreign companies also transfer technology
and equipment to local companies. Even the training of staff of a local company is
also conducted by a foreign company. In return, a local company has to supply all
its goods to a foreign company at a fixed price. The foreign company sell these
goods in the market through its own channels and on its own price.
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