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Title of Thesis

Syed Qadir Ahmad
Institute/University/Department Details
University of Karachi/Institute of Business Administration
Business Administration
Number of Pages
Keywords (Extracted from title, table of contents and abstract of thesis)
technology transfer, licensing agreements, turnkey contracts, foreign direct investment, subsidiaries, joint ventures, quality control, territorial restrictions

In the world of today no country can be sure of its economic progress and prosperity without acquiring, if not mastery, at least sufficient competency in science and technology. Similarly competitive survival or growth of a business firm depends on how superior its internal technological environment is as compared to its rivals. Insensitivity to the acquisition of science and technology leads to dependencies of all kinds.

There are three stages in the acquisition of technology: (1) identification, (2) transfer and (3) internalization. The channels of acquiring technology are foreign direct investment, subsidiaries, joint ventures, turnkey contracts and licensing agreements. The agents of acquisition are government, non-government and business organizations.

This dissertation is concerned with the second stage i.e. transfer of technology trough licensing agreement by business organizations of a LDC like Pakistan.

Although there are other channels of technology transfer but licensing agreement is not only a separate channel but also common to all other channels.

The efficiency of the transfer of technology depends, besides some other factors, on the terms on which the technology is made available. These terms, as appearing in various clauses in the agreements, indicate the bargaining strength of the parties; the importance attached by the parties to these terms, the legal framework within which the government allows the inflow of technology; and the care and diligence put in by the regulatory agencies of the country concerned.

A large number of studies have analyzed the terms of technology transfer from developed to less developed countries. But almost all were restricted to two broad categories of clauses, viz. the restrictive and remuneration clauses. No attention was paid to clauses dealing with such matters as the age of the technology; suitability of the licensor to transfer the technology; secrecy; post termination matters; sub-contracting and sublicensing; exclusivity and non-exclusivity; training; quality control; indemnity; improvements and their grant back.

This dissertation is an exploratory effort to break the ground for studying the licensing agreements as a whole. The contents of the clauses and their incidence found in the licensing agreements in Pakistan have been studied.

The main conclusions drawn from this study are that technology is still being transferred on terms which are not conducive to the technological development of Pakistan. Although explicit restrictive clauses such as tied purchases and export restrictions are not found in the Pakistan agreements, due to the requirements of registration, the objectives of heir inclusion may still be achieved by licensors through quality control and exclusivity and territorial restrictions. Restrictions on subcontracting, sublicensing and secrecy appear to hamper the development of vendor industries and hence the diffusion of imported technology.

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1924.52 KB
S. No. Chapter Title of the Chapters Page Size (KB)
1 0 Contents
154.04 KB
2 1 Technology and Technology Transfer 12
205.77 KB
  1.1 Technology Defined 12
  1.2 Know how Defined 14
  1.3 Transfer of Technology Defined 14
  1.4 Economic Development and Role of Technology 17
  1.5 History of Transfer of Technology 20
  1.6 International Market for Technology 30
  1.7 Conclusions 36
3 2 Channels of Transfer of Technology in LDC 40
311.69 KB
  2.1 Channels of Transfer of Technology 40
  2.2 Conclusions 80
4 3 Transfer of Technology Policy in LDCs 83
200.78 KB
  3.1 Technology Policy; Objectives and Priorities 83
  3.2 Identification of Technological Needs 87
  3.3 Technology Information Network 90
  3.4 Identification of Technology Sources 91
  3.5 Legislative Framework 94
  3.6 The Pakistani Experience 98
  3.7 Conclusions 107
5 4 Research Methodology 109
97.72 KB
  4.1 Objectives of the Study 109
  4.2 Alternative Research Methods Considered for this Study 112
  4.3 Data and Its Collection for the Study 116
  4.4 Analysis of The Agreements 119
  4.5 Conclusions 119
6 5 Transfer of Technology Agreements in Pakistan 121
97.84 KB
  5.1 Types of Technology Transfer Agreement 121
  5.2 Role and Place of Transfer of Technology Agreement in the Transfer of Technology Policy and Transactions 123
  5.3 Clauses Generally Found in Licensing Agreements 124
  5.4 Selection of Technology 124
  5.5 Selection of Licensor 126
  5.6 Country – Wise Distribution of Agreements 128
  5.7 Economic Sector- Wise Distribution of Agreements 129
  5.8 Conclusion 130
7 6 Analysis and Evaluation of Clauses in Pakistani Licensing Agreements 133
617.07 KB
  6.1 Clauses of the Licensing Agreements 133
8 7 Conclusions and Recommendations 215
77.75 KB
9 8 Bibliography 226
407.94 KB
10 9 Appendix 264
85.12 KB