Technology Transfer Strategies by seed Companies in Indian Seed Sector

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Technology Transfer Strategies by seed Companies
in Indian Seed Sector

• PRESENTED
• BY
• Mr BAJRANG LAL
• Supervision of Prof., P.N. Desai
• Centre for Studies in Science Policy,
• Jawaharlal Nehru University
• Assistant Director(Agri-Business),
• National Productivity Council,
• (under Ministry of Commerce Industry)
• India
• at
• Manchester Institute of Innovation
  Research(MIoR),MBS, Harold Hanking Building
  University of Manchester ,UK
• bajrangb_at_gmail.com

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Focus of the Research

• Seed System of Innovation.
• Networks in the Indian seed Sector.
• Technology Transfer .
• Technology Transfer Strategies
• Barriers .
• Technology transfer management Strategies

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CONCEPTUAL UNDERSTANDING OF AGRICULTURE AND THE
SEED INNOVATION SYSTEM

• Agricultural Research System has witnessed
  substantial debate over the best way to develop
  and manage science technology innovation.
• linear model or transfer of technology model
  (Biggs, 1989).
• Innovation system
• Seed Innovation system (sectoral System of
  Innovation)

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SEED INNOVATION SYSTEM IN INDIA

• Defin. A sectoral system of innovation and
  production is composed by the set of
  heterogeneous agents carrying out market and
  non-market interactions for the generation,
  adoption and use of (new and established)
  technologies and for the creation, production and
  use of (new and established) products that
  pertain to a sector (sectoral products)(Malerba,
  2002)
• Innovation approach-an interactive process among
  wide variety of actors/ agents (Nelson, 1992
  Lundvall, 1993 Carlsson, Edquist, 1997).
• Techno-historical path of various agent in seed
  sector development.
• Institutions International, National, Regional
  and Local Institution role
• RD investment -Public- Private, Firms
  Development Agencies.
• Finance.
• Market .
• Policy.
• Role of institutions
• 
  
• 
  Conti

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Seed Production Public
Private
NGO


IARC
More than 50 firms
MNCs
ICAR SAUs, Res St.
NSP
Basic RD Applied RD
Foundation Seed
SAU/State/Research
50 firms
Commercial Seed Production
NSC, 13SSC SFSC
Contract farming
More 400 Seed Companies
Regional seed production/ contact farming
Seed Distribution Sales
Thousand of Dealers at district Distribution
Govt.
Coops
Farmers
Sources Pray et al, 1990. Figure
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Size of Private Seed Sector in India
Sources Seed Industry in AP- A profile, 2004
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Funding - Plan outlay of ICAR
Soure Jha etal1995,ICAR budget books and DARE
and ICAR(2001) tenth Five year Plan (2002-2007)
including Annual plan(2003-04) 1 ICAR, 1997.
Care strength of ICAR institute for Agricultural
Research Scientist, New Delhi
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Source - International Seed federation/www.worlds
eed.org/2008
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Indian Seed market
Sources Kapoor, Arvind. Private Sector role
vital, The Hindu Survey of Agriculture (1999).
Agriculture Today, Industry source, 2004. NA
not available, Bajrang Lal, 2008. Rabo-Bank
Reportm 2008, published see on Local seed
industry turning key centre in Asia, Business
standard Dilip Kumar Jha / Mumbai November 23,
2006. http//www.business-standard.com/india/news/
local-seed-industry-turning-key-centre-in-asia/265
653/
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Worlds Top Ten Seed Companies doing business in
India
Sources Global seed concentration-2005- ETC and
www.PANNA.org/resources
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Strategic Behavior of Different Agents

• Market-Signals -New competitive pattern and
  strategies(Oosterwijk,2003 Pray, C.E. Ramaswami
  and Kelly,2001).
• Profit - The companies are investing more RD on
  vegetables and commercial crops then cereals,
  pulses and small millets with the high
  expectation of return on innovation(Pray,
  Ramaswami and Kelley., 2001).
• Competition out of the survey South Asia region
  around 32 percent of the seed companies have
  established research and development (RD) budget
  below 5 percent of their total budget. The 55
  percent seed companies are in range of 5 to 20
  percent and only one company has a budget above
  20 percent. The allotted budget is mostly
  confined to developing new varieties and hybrids
  for local and international vegetables market
  (AVRDC)
• Competitiveness

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Mode and Strategies for Technology Transfer opted
by Private firms in Indian Seed Sector to procure
technology?
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Mode of Technology transfer

• Publication,
• Scientific communication
• Exchange programme
• Office of Technology Transfer
• Public-Private Partnership-eg University-industry
• Licensing agreement-Merger, takeover, subsidiary
  
• Foreign Direct Investment-100 percent FDI is
  Permitted under the Automatic route in seed.
• Collaboration

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Technology Transfer Model in Seed Sector


Types of technology transfer -Technology
processes (life cycle) -Need (seller and buyer)
parental line, gene transfer and techniques
-Appropriate Technology
Channel of technology transfer -FDI - Venture
-RD Collaboration -Merger and acquisition
(MNC) -State owned modes
Application of technology -Field level
-Adaptation (varieties and package practices
Technology user s
Technology transferee
Technology Transfer in Seed Sector

Factor affecting technology transfer -Stake
holder -Technology market -Contract -HR
capabilities -Regulation -Culture -IPR PPVFR
and --Biodiversity -National Polices (agri-
economic polices)
Form of Technology Transfer -Embodied
Selection of technology -Local requirement
-Social acceptance -Businesses goal
-Environment
Impact of technology -Economic -Social
-Environmental -Political
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LINK, SECTORAL INTERDEPENDENCES AND BOUNDARIES
State Policies (Regulation,/Rule, Material
Transfer Agreements)

• Transfer to customers
• Institution,
• Other companies,
• Non-notified agencies,
• Farmers,
• Seed Grower Association.

• Technology developer and Procures
• Public RD institution,
• MNC and other companies,
• In-house facilities,
• Farmers etc.

Firms
What about Small and medium size and small
companies case? - involved in marketing only
Subsidiary, collaboration for Seed technology
and seed marketing
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Few Example - Technology Transfer Strategies by
Domestic and Multinational Companies by firms
Source information retrieved from Seed Quest,
2008, Survey of Agriculture, 2008.
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Source India stat, 2008.
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Foreign RD Centres

• Foreign Centers in Seed Research

• 33 companies having RD centres in sectors .
• Genetic diversity and good mix of heterogeneous
  market segments.
• Good mix heterogamous market segment.
• Export potential in tropical to subtropical to
  some extent temperate.
• changes in the stock of knowledge generate new
  techno-economic opportunities that stimulate and
  encourage the private sector to undertake
  developmental research
• Regulations , IPR

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Holding of multinational and Indian Seed
Companies Concentration
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Market Needs idea
Technology Classification
TECHNOLOGY STRATEGY The continuous classification
selection, adoption, and exploitation of
technologies needed to achieve business goals
RESOURCES ROUTINES
Workforce
Internal Forces
RD Capacity
Project Management
Technology Exploitation
Design Facilities
Technology Selection
Knowledge Management
Operations Management
Structure
CONFIGURATION CAPABILITIES The resultant
Organisational from and value propositions in
terms of cost, innovation, service flexibility
reliability, etc.
Operational Processes
Technology Adoption
The Technology Strategy configuration Chain
competition
Source McCarthy,2003
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Technology transfer management strategies by seed
sector in India

• Domestic

• MNC

• Build technological capabilities
• Technology development and selection
• International exposures
• Advanced technological advantage
• Wider market penetration

• Monsanto (technology leader) and Pioneer(Rich
  genetic resources growing parall
• Bayer's man focus on maximum take of Indian
  subsidiary
• Agroevo, Zencea, and Avesthagen involved in
  creating indian subsidiary, collaboration for
  market penetration

Still technology transfer is somehow complex
than industrial processes , it has serious impact
on farmers and environment ,
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Conclusion

• Technology transfer strategies approach is now
  main-stream.
• Monopoly over technologies, level of bio safety,
  PPV, licensing agreement and investment on
  technology identified as a major issue of
  technology transfer .
• Behaviour of MNC is important in regional
  prespective
• Future research work is required in this
  direction.

11/16/2009
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Thank You