By Friedrich Levcik
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Additional info for Industrial Cooperation between East and West
A) The ECE report reserves the term cooperation only for those licensing agreements in which the licensing fee is paid at least partially in the products manufactured on the basis of the licenses in question. In 1972 28%, and in 1975 26%, of all East-West cooperative ventures stemmed from licensing agreements, and in 11% and 7%, respectively, of these the licenser also supplied components of the end product. Licensing agreements are the most important form of cooperative venture in Bulgaria and Czechoslovakia (in some of its agreements Czechoslovakia is apparently the licenser) and the second most important in Hungary, Poland, and Romania.
Usually in the country of the Western partner, often also in other Western third-party nations, and 36 Types of Cooperation less frequently in socialist countries. Cooperative sales undertakings independent of cooperative ventures in production usually involve the utilization of the sales and service network and the marketing knowledge of the Western partner. About 6% of the FRG's cooperative arrangements involve sales. From time to time joint sales promotion companies are formed in the Western countries with capital participation by both the Western and Eastern partner.
Austria and Finland), the expansion of cooperative relations with the Eastern countries could boost some branches of industry. Individual Enterprise Motives In the East (see pp. 48-53 in this chapter) both the enterprises and state agencies have comparable microeconomic interests in 44 Motives for Cooperation cooperation. The reasons may be described as follows: Expansion of production, raising the technical level of production processes and of the product, and increasing productivity through the procurement of modern Western technology.
Industrial Cooperation between East and West by Friedrich Levcik