The dynamics of negotiations technology transfer from Canada to Saudi Arabia : the case of ProteoCell, a biopharmaceutical company

Abstract

In recent years, high-technology industries pioneered the globalization of international business. A firm's success often depends on how well it transfers technology to other firms or foreign markets. Transnational technology transfer faces greater problems across borders than within a domestic environment because it confronts differing cultures, norms, laws, tax policies, and other barriers to entry. This begs the questions; what are the main factors and strategies involved in negotiating a successful international technology transfer, especially in a unique high-tech industry, and with a high profile product such as human insulin for Diabetics? Many of the important factors are ambiguous by nature and difficult to measure. For instance, the technology to be transferred and the target markets may be changing, estimating costs and prices can be difficult, and the competition may consist of only a small number of firms or governments. Additionally, several critical factors may be external to the firms involved, such as political, cultural, and economic conditions. It is important, under these conditions, for management to have a good understanding of the international technology transfer process and the barriers and bonds that determine its success. This research study addresses a technology transfer of biopharmaceutical manufacturing platform for recombinant Human Insulin from Canada, a world leader in research and technology development to the Kingdom of Saudi Arabia (KSA) a very receptive emerging market for high-technology. In this paper, the researcher studies the case of ProteoCell Biopharmaceuticals, a biopharmaceutical products -manufacturing company in Canada that is venturing into the MENA region with the goal of building a biopharmaceutical manufacturing facility for its Protelin product, which is recombinant human insulin. This study answers the research question: What are the conditions needed to bring about a successful technology transfer project for the commercialization of a development stage Canadian biopharmaceutical product in the Saudi market? Accordingly the findings will show how a joint venture would be the best option for a successful technology transfer between these two countries. Possessing more advantages than a BOT modality, a joint venture agreement, will allow both parties to have mutual long-term benefits by exchanging the know-how and the knowledge in return for short-term financial liquidity.