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Technology Offsets in International Defence Procurement [Mīkstie vāki]

(WMG, University of Warwick, UK)
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Technology offsets, a nonconventional international trade-financing tool, is used by governments (buyers) to obtain industrial and technological benefits from companies (sellers) as part of international procurement. Offsets deals involve billions of dollars and this practice exists in around 80 countries around the world. Though offsets is a popular practice in defence, it is increasingly gaining popularity in civil sectors. Offsets is often tainted by controversy and receives bad press. What then makes offsets popular? Governments claim that offsets delivers technology and knowledge transfer, skills in high technology sectors and employment, and offsets expands export opportunities through participation in OEM supply chains. For companies, offsets is mainly employed as a tool to obtain a competitive edge and win sales in international business. In the past, there have been mixed results of case studies on the impact of offsets successes and failures.





Considering the mismanagement of globalisation, unfair trade agreements and current political and economic discontent, there is a stronger need for governments and companies to use vehicles such as offsets to create a relationship of trust and commitment for sustainable development. This book fills the gap in offsets and focuses on how to manage offsets more effectively by addressing issues of strategy, policy and implementation, technology management, governance and risk.





Technology Offsets in International Defence Procurement

is designed for those studying international procurement, international trade, international business, technology management, defence policy and industrial policy. This book will also be of interest to practitioners and policy makers in both government and industry.

Recenzijas

'This is an insightful and knowledgeable piece of academic work from one of the foremost experts in the fiendishly complex subject of global offset and countertrade matters, and adds considerably to the currently poorly-served body of work available to researchers on this subject. The author is uniquely qualified to be able to present an accurate picture of this increasingly important, but little-understood and often erroneously portrayed subject, and present accurately the views and opinions from both the viewpoints of the Government "Offset Tsars" to set and police their national offset and countertrade policies, and also of the multinational companies who have to seek to try to comply with these regulations.' - Brinley Salzmann, Director - Overseas & Exports, ADS

'Defence and civil offset is often described as a black art, marked by controversy and contradiction. It is legal, but anti-competitive; governed by policy, but opaque; a catalyst for industrial and technological development, but cost-enhancing and offering only limited and temporary additions of capacity and capability. Dr Balakrishnan is to be applauded for cutting through this confusion, and de-mystifying the subject. Her book offers practitioners and interested observers alike an overdue practical guide to simplifying the complexities of defence offset.' - Ron Matthews: Chair, Defence Economics, Cranfield University, United Kingdom

Foreword; Acknowledgements; List of Abbreviations; PHASE I;
Chapter
1.
An Introduction to Offsets; 1.1 Setting the Scene; 1.2 Why the need for this
book?; 1.3 Global Offsets Obligation and Trend; 1.4 Offsets in International
Procurement; 1.5 Key research on Offsets; 1.6 Costs and Benefits of Offsets;
1.7 Offsets Stakeholders and their Views; 1.8 The need for an Offsets
Framework; 1.9 Structure of the Book;
Chapter
2. Key Aspects to Offsets
Management; 2.1 Background; 2.2 Nonconventional International Trade Financing
(NITF); 2.3 How have Offsets Projects Evolved?; 2.4 Origin of Offsets; 2.5
Understanding Offsets Terminologies; 2.6 Offsets Case Study: Use of Offsets
Multipliers;
Chapter
3. Theoretical underpinning to the study of offsets; 3.1
Introduction; 3.2 Technology Self-sufficiency Leading to Independence in
Defence and Security; 3.3 Industrialisation, or 'Take-Off'; 3.4 Reducing the
Technological Gap; 3.5 Building Dynamic Capability; 3.6 Industrialisation
through Clusters; 3.7 Sustaining fi rm competitiveness through technological
absorption capability (TAC); PHASE II;
Chapter
4. Role of Government: Offsets
Strategy and Policy Formulation: Development Phase; 4.1 Background; 4.2 Role
of Offsets in International Defence Procurement; 4.3 The Offsets Management
Cycle (OMC); 4.4 Offsets Strategy Development; 4.5 Offsets Policy
Formulation; 4.6 Responsibilities for Offsets Policy Formulation; 4.7
Determining Offsets Objectives; 4.8 Identifying Stakeholders;
Chapter
5. Role
of Government in Offsets Implementation: Pre-, During and Post-contract
Phase; 5.1 Background; 5.2 Role of Offsets Management Authority (OMO); 5.3
Offsets Implementation Process; 5.4 Common Issues in Offsets Implementation;
Chapter
6. Sellers' Offset Strategy and Implementation; 6.1 Background; 6.2
Sellers' Perception of Offsets; 6.3 Essential Features of Offsets in a
Company; 6.4 Sellers' Offsets Management Life Cycle; 6.5 Five Forces that
Influence Sellers' Successful Offsets Strategy and Delivery; 6.6 Issues to
Consider for Sellers when Managing Offsets; PHASE III;
Chapter
7. Technology,
Competitiveness and Offsets Valuation; 7.1 Background; 7.2 Defining
Technology; 7.3 Elements of Transfer of Technology in Offsets (TOT); 7.4
Technology Acquisition and Offsets Justification form National
Competitiveness; 7.5 Technology Valuation, Process and Approach; 7.6 Critical
Factors for Successful Transfer of Technology through Offsets; 7.7 Case
Study;
Chapter
8. Transparency in Offset; 8.1 Is Offsets a Corrupt Practise?;
8.2 What Does Transparency International (TI) say about Offsets?; 8.3
Possible Malpractise in Offsets Dealings; 8.4 Defence Sales and Allegations
of Corrupt Practice in Offsets; 8.5 Recommendation on Best Practises for
Greater Offsets Transparency;
Chapter
9. Managing Offsets Risks; 9.1
Awareness to Risks in Offsets; 9.2 Evaluating Risks in Offsets Management
Life Cycle: Buyer Perspective (Offset Oblige); 9.3 Evaluating Risks in
Offsets Management Life Cycle: Seller Perspective (Offsets Obligor); 9.4 Case
Study;
Chapter
10. Conclusion and Future of Offsets; 10.1 Offsets is Here to
Stay; 10.2 Future of Offsets
Kogila Balakrishnan is currently the Director for Client and Business Development (East Asia) at WMG, University of Warwick. She began her career in the Malaysian civil service where she was instrumental in the development of national offsets policy and subsequently retired as the Under Secretary for Defence Industry in 2016. Kogila holds an BA (Hons) from University of Malaya, LLB (Hons) degree from the University of London and an MA in Strategy and Diplomacy from the Malaysian National University. She won a Fulbright Scholarship in 2003 and held a Chevening Scholarship during 20042007, when she obtained her PhD in offsets and technology policy from the Defence College of Management and Technology, Cranfield University, UK Defence Academy. She presently holds an Adjunct Professorship at the Malaysian National Defence University and continues to advise governments and organisations on offsets policy. Kogila is married and has three wonderful children.