With the amendments to DPP 2008 made this November the priority of the nation has moved away from research to transfer of technology. This is one area where European companies can stand a chance to win against U.S. companies who are disadvantaged by their country’s stringent export control and monitoring restrictions.
Pär Rohman, Vice President, Industrial Cooperation, Saab was in India for the CII/CAPS Seminar on Energising Indian Aerospace on Nov 19 and made a presentation (download) on transfer of technology. Manu Sood, Editor, 8ak had the opportunity to interview him.
8ak: India has had a lot of problems with ToT in the past. How can Saab help address these issues?
Rohman: The main problems India had are a foreign country’s government intervening to deny access to technologies, the vendor’s reluctance to part with technology fearing cannibalisation and the inability to absorb technology. Saab has a different approach based on long-term partnership and mutual growth. Saab has a proven model that enables the receiver to utilize and apply the technologies transferred. This means that it involves much more than just “technical information”.
With the Swedish Prime Minister and defence delegation’s visit there has been an inter-government commitment to partner with Indian defence and neither country is bound by a third country’s dictats. In terms of ToT, Saab’s approach is unique. We don’t just give away the technology, we partner with you to build on and further develop in collaboration right from the start. This will give the Indian firm the ability to maintain and modify the system.
8ak: What is in it for Saab?
Rohman: Your recent article mentioned the Swedish minister suggesting that Sweden is looking at India not as a buyer but as a long term partner and the same is true for Saab. We believe the relationship will be for mutual benefit. So while we transfer technology, we gain new knowledge in the process and at the same time benefit from India’s engineering & software expertise and low operating costs. This will help Saab further develop the products and jointly market it globally for export.
8ak: Have you successfully implemented such programs in other countries?
Rohman: Yes. For the Gripen alone, we have successful offset programs in e.g Hungary and South Africa.
8ak: Do you have a preference for public or private sector in terms of ToT?
Rohman: We have relations with the major Indian DPSUs, so will do as directed by the terms of the RFP.
At the seminar, a question raised was lessons India should learn from the Embraer’s success. My view is that it proves privatisation works but requires long-term, government support. If you look around globally, all major successful companies have transformed themselves in to systems integrators. There are significant lessons for India.
8ak: What are the problems that Saab faces in India in terms of ToT?
Rohman: The biggest problem is FIPB’s 26% cap on FDI which is discriminatory and adds to the country risk. As benchmark, 2 countries with successful defence programs Brazil and Dubai both have a much higher 49% cap. At 26% the best foreign companies will either not bid or be in a position where they are forced to part with technologies. Neither of these have worked for India in the past.
(Source)
Posts
