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

developers more convenient.

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.