Types of Partnership Agreements

Although a specific definition of a PA can be difficult to provide, a PA must be both tangible and transparent regarding

•     the object of the business collaboration (for a Business PA), or

•     the technology transferred (for a Technology PA),

•     the European project submitted (for a Research PA).

The benefit of the partnership for the parties involved must be clear in the PA report.

The choice of PA type – to be specified in the PA Statement Letter - should be made by Enterprise Europe Network staff according to the principal object of the PA, in agreement with the definitions given below, when a specific definition is given.

Types of Business PAs

•     Trade intermediary services (distributor, supplier, etc.)

•     Franchise

•     Joint Venture

•     Merger or exchange of shares

•        Sale / acquisition of a complete company or a part of it

•     Reciprocal production

•     Subcontracting / Outsourcing activities

•     Transport / Logistics

Types of Technology PAs

In most cases, a Technology PA involves the transfer of know-how, technology, or expertise from a Developer to the Recipient. For example, the element transferred may describe the technology behind a process that will enable the recipient to either manufacture the product or implement a new process, or system. The following are descriptions of what are regarded as eligible Technology PAs for the Enterprise Europe Network.

Licensing Agreement

The transfer of certain rights from the Developer of a technology, process or know how to the Recipient, in return for a fee or share of royalties. An Industrial Franchise can be regarded as a type of licensing agreement. This type of agreement allows the Franchise holder (Recipient) to obtain the Franchisee's (Developer) know-how, or expertise in order to manufacture a product that will be distributed under the franchisee's brand in a given territory.

Technical Cooperation

Technical cooperation requires that both Parties play an active/creative role by providing their expertise or know-how in order to:

•     Adapt a technology, a product or a process for a new application or sector.

•     Develop a technology, a product or a process to meet new market needs.

The following types of technical cooperation agreements are regarded as eligible:

•     Co-development of a new product using the expertise of the Developer and the production facilities of the Recipient.

•     Between two Parties to develop a new version of an existing product to meet market needs.

•     Feasibility study including tests customised for a specific application.

•     Consortium agreements, joint ventures and technological agreements between customer and suppliers can also be classified as technical cooperation.

Joint Venture

A joint venture is a strategic alliance between two or more Parties to undertake an economic activity together. The Parties agree to create a new entity together, by both contributing equally, and then share the revenues, expenses, and control of the enterprise. The venture can be for one specific project only, or a continuing business relationship. It implies the creation of a formalised link between companies, with the sharing of commercially sensitive information to allow the development of new technologies, processes or products.

Spin-offs and start-up creations via partnerships between entrepreneurs from universities, research organisations or inventors with investors (e.g. Venture capital funds, business angels, strategic partners etc.) are also eligible joint ventures.

Commercial Agreement with Technical Assistance

The provision of a number of services in support of, or essential to a transfer of technology:

•     Assistance with starting up an installation.

•     Advice on the use of a new process.

•     Quality control.

•     Technical Consultancy.

•     Maintenance and machine repair.

Technical assistance ensures the effective start-up and/or maintenance of the transferred technology, but also covers the installation of technology (assembly, engineering work, testing, and training).

Manufacturing Agreement (Subcontracting & Co-contracting)

These types of agreements are only eligible if they involve some element of the transfer of expertise, know-how, technology and/or training. There are two clear examples where these types of agreements are eligible:

•     Subcontracting Capacity: the Developer transfers some of its know-how to the subcontractor to allow the sub­contractor to perform the work required.

•     Subcontracting Specialties: the Contractor selects the subcontractor on the basis of skills, expertise and know-how it possesses, to develop new processes and technologies.

•     Transfer of knowledge in new raw materials: the developer has a technology to eliminate some specific type of pollutants from contaminated soils and the partner looked for should improve the technology to make it possible to eliminate additional types of pollutants.

•     New way to use an existing production line: the developer has found a way to modify cardboard-cutting machines to be able to use it to cut glass. He offers other companies to use his technology to do the same with their cardboard-cutting machines.

•     Change in the currently used technology of the partner sought (installations, process, facilities): the devel­oper created a technology to clean heat exchangers without chemicals. To use the technology, the potential part­ner will need to make changes in his heat exchanger system.

•     Absolutely novel process: the developer found a better way and made a machine to sterilise corks, using micro­wave. It offers the technology to cork companies who will have to integrate a new microwave machine in their production line to replace the chemical treatment unit they used previously.

Agreements which should not be reported as Technology PAs

Agency/Distribution Agreements

Agency and distribution agreements refer to agreements reached with an agent or distributor to find markets for a product. This is a purely commercial form of activity. The agent or distributor will only receive information on the product, advantages, performance, costs etc. to help sell it, but this does not constitute a technology transfer. The agent is simply signing an agreement that allows him to sell the technology on to another company for commercial gain. This type of PA has to be reported as Business PA.

EUREKA & CRAFT

Successful searches for partners to participate in EU-funded project proposals must not be reported as Technology PAs but rather as Research PAs.

Types of Research PAs

A Research PA involves partners of a project funded under any European programme (including bilateral projects funded under the EUREKA programme) which clearly mention research and technological development (RTD) as part of its objectives, as long as part of the project's activities involves RTD and if the RTD component of the project is indicated in the PA report.