Transfer of technology

In recent years the transfer of technology has become an international issue. In the North-South dialogue, the «Group of 77» has claimed that the economic disparities between the developing nations and the less developed nations (LDSs) will not be reduced until technology is transferred to the LDSs. Moreover, it maintains that technology should be given without charge to the poorer nations. We do not agree with this position. Technology can be transferred in a way that is of long-term benefit to both the developed and the developing country. Technology cannot be transferred by handing the country a set of specifications and an engineer for three months. The recipient must be in a position to receive and utilize the technology and the technology must be appropriate to the receiving nation. Technology is dynamic, it is continuously evolving and the transfer involves an ongoing mutually-beneficial relationship. When properly done, the transfer of technology brings great and continuing benefits to the host country.

Joint ventures are an effective and mutually beneficial method of transferred technology. Our company has spent tens of millions of dollars over the years developing technology in various product lines. We will not «sell» that technology. We believe that maximum benefits is derived for all parties when the transfer is executed through a joint venture. We also emphasize that the technology transferred should be of the highest standard that the partnership and the investment environment can absorb. It must be recognized that at an early stage of development, a host country may not have the skills to absorb the highest technology but every effort should be made to introduce a higher level as soon as it can be effectively and economically put into practice.

This suggests that it is crystal to the joint venture that the Canadian investor who is supplying the technology maintains a research and development program that continues to produce world competitive products and processes. In this way, no incentive is given to the partner to look elsewhere for technical assistance.

Technology transfer involves the negotiation of a Technical Service. Agreement and this should be fair to both parties. Where applicable, our Company establishes an upper limit on the technical fee – usually based on sales volume so that there is a limit to the amount a joint venture would have to pay in any one year.

The Canadian investor must be prepared to provide adequate and competent staff to effect the transfer of technology. Where applicable, assistance and encouragement should be given to the joint venture in the establishment of research and development facilities in the host country.

Some words of caution: ensure that your patents are protected in the host country, and register your Technical Service Agreement with the host government as soon as possible to ensure that the government grants approval both to the royalty rates negotiated and the remission of those royalties to Canada.

Дата добавления: 2015-10-02