Determination of technology transfer fee

The determination of technology transfer fee is different from the pricing of general commodities. In practical work, we have encountered some methods to evaluate technology transfer fees:

In the past, most of the technologies we introduced were accompanied by the import of complete sets of equipment, and the total price quoted by foreign businessmen included the technology transfer fee. This gives people a misunderstanding that the technology transfer fee is based on the equipment price and charged in proportion. Therefore, the rationality can be evaluated according to the proportion of technology transfer fee to the total contract price. In our opinion, this consideration is unreasonable. This is because technical products are produced through the operation of equipment. However, the complexity of technology and the economic effect of using technology are not directly related to the number of equipment used, the length of production line and its complexity. The quantity of equipment, the length of production line and its complexity have great influence on the price of equipment or the total contract price.

On the other hand, if it is a simple technology transfer contract, how to evaluate its cost? It can be seen that this is not a correct method to evaluate the technology transfer fee. In addition, some people think that the technology transfer fee should be the compensation for the input cost when developing technology. In our technology trade negotiations, some foreign businessmen often emphasize the arduousness of their technology development process and the huge investment in order to explain the rationality of charging technology transfer fees from technology transferees. The implication is that these inputs need to be compensated by the technology transferee. Although there is patent protection at present, the same technology will not be accepted by the world when it is developed later. However, due to different basic conditions and different methods and means of technology development, the investment of technology developers is always very different. One-sided determination of the size of technology transfer fee with the investment of a technology development will lack the basis of social recognition. Judging from the benefits of introducing a technology, the transferee can't get the economic benefits he originally imagined, or the cost of introducing technology is greater than the investment of independent development, so the technology transfer can't be realized.

In fact, except for the technology specially requested by the transferee, most of the technology development is realized by the technology owner in the production of his own products, and the cost of R&D technology has been prepaid in the production cost or shared and recovered when his products are sold. Therefore, the technology transferor has obtained pure additional benefits by bringing a technology to the market.

I don't know how to quote for transferring a technology. A technology is usually sold at a very low price or for free. A newly developed technology can only show its value if it is realized in production. The timeliness of technology is very strong, and the transfer and implementation have a very complicated process. However, in the past, we ignored the unique characteristics of technology as a commodity, brought technology to the auction market, transferred technology by auction, and priced it by auction. But whether this approach is appropriate is worth studying.

There are many factors that affect the size of technology transfer fee. We can't use the general commodity method to price, nor can we use simple calculation methods to get an exact value. It is generally believed that the principle of determining the technology transfer fee is that the transferor and the transferee share the extra profits obtained after using the technology. Because the transferee bears the risks of operation and market when implementing the technology, the transferee should take most of the profits. As for their respective proportions, they shall be determined by both parties through consultation. And because there are many difficulties in accounting for extra profits. Therefore, in technology trade, the sales of products are actually used as the basis for calculating technology transfer fees.