Conceptualizing strategies for technology development: a case study of an Indian licensee

Abstract

The ensuing economic liberalization in the country has been a rapid increase in licensing and joint venture arrangements involving Indian firms. For long term growth, the domestic firms will have to develop mechanisms and strategies to learn from these tie-ups. Available literature suggests that, in the past, Indian firms have not been able to build on the knowledge acquired through such linkages. Often licensing contracts do not provide adequate knowledge about the licensed product which would enable the licensee to modify and develop it further. Such a strategy requires, first, to identify those elements of technology that are essential for building on licensed technology and have not been transferred by the licensor, and second, to generate capabilities in order to acquire and/or develop these elements. This paper presents a framework for analyzing technology strategies at the firm level and illustrates its usefulness in the context of an Indian licensee.