India's three-way payment channel - India pays huge royalties to promote technology introduction and cooperation

What are the advantages and shortcomings of India's practice of paying huge royalties as compared to our policy of technology introduction and co-operation?

India's practice of paying huge royalties to facilitate technology introduction and cooperation has the following advantages and shortcomings as compared to our policy of technology introduction and cooperation:

Advantage:

1. Rapid access to advanced technology: By paying huge royalties, India can quickly acquire international advanced technology, shorten the technology gap and improve the competitiveness of domestic industries.

2. Enhancement of international image: India's willingness to pay a price for technology introduction, as demonstrated by the payment of huge royalties, has helped to enhance India's image in the international arena by demonstrating its openness and positive attitude.

Insufficient:

1. Higher costs: Paying large royalties means that India needs to incur higher costs, which may have an impact on the country's fiscal position, especially in times of economic downturn.

2. Technology dependence: Excessive reliance on payment of royalties for the introduction of technology may lead to a higher degree of dependence on foreign technology in critical areas, which may adversely affect India's technological development in the event of a change in the international situation.

Compare this with our policy on technology introduction and cooperation:

1. We have adopted a variety of modalities for technology introduction, including outright purchase, collaborative research and development, and technology licensing, to reduce costs and risks. India, on the other hand, relies mainly on the payment of huge royalties, which gives us more flexibility in technology acquisition.

2. In the process of technology introduction and cooperation, China focuses on digestion, absorption and innovation, and continuously improves its independent innovation capacity through introduction, digestion, absorption and re-innovation. India, on the other hand, may have neglected the cultivation of independent innovation capacity in the process of paying royalties.

3. In the process of technology introduction and cooperation, China stresses mutual benefit and win-win situation and focuses on establishing long-term and stable cooperative relationships with international partners. India's practice of paying huge royalties, on the other hand, may lead to a more passive position in the process of cooperation.

In conclusion, India's practice of paying large royalties has advantages in terms of rapid access to advanced technology, but it has shortcomings in terms of cost, technological dependence and modes of cooperation. China has adopted a more comprehensive and flexible policy on technology acquisition and cooperation to achieve sustainable development and independent innovation.