When a new technology leaves the prototype phase and begins its journey toward creating economic value, agreements arise that regulate how, with whom, and under what conditions that knowledge will be shared. Below, we explain the eight most common contractual types in innovation transfer.
1. Project Participation Agreements
The collaborative roadmap, since these contracts set the ground rules when several partners jointly develop R&D. They define actions, assign tasks, set deadlines and performance metrics to avoid duplication.
Each party’s contributions range from funding to pre-existing patents, personnel, or equipment. As for the ownership of results, it is defined whether the “delivery” will be shared or individual. Internal competition is also limited to protect the core of the project. They usually include an exit clause that sets out what happens if a partner leaves prematurely (penalties, refund of funds, etc.).
Generally used for European consortia, open innovation programs, or co-financed developments between business and university.
2. Non-Disclosure Agreements (NDA)
The insurance of silence, since before revealing algorithms, formulas or strategies, an NDA shields sensitive information: it forbids its disclosure and sets the time window for confidentiality. Well drafted, it saves litigation and conveys professionalism.
3. Assignment of Rights
When ownership changes hands and the innovator transfers intellectual property permanently, the new holder acquires all exploitation rights in exchange for a fixed or variable price. It is the preferred option when the assignor does not wish to remain linked to the project.
4. Licenses
Sharing without losing the crown, as they allow the technology to be exploited while retaining original ownership.
There is the contractual license, which is negotiated between parties, exclusive or not, with royalties for example in the case of SaaS Software licensed to manufacturers. There is also the statutory license, which is automatically granted by law, for example in public research or results of projects funded with state funds. And the compulsory license, imposed by an authority to prevent abuse of dominant position as may happen with pharmaceutical patents in health emergencies.
5. Provision of Professional Training Services
From know-how to training. The creator company trains the client’s team in the use, maintenance, or scaling of the innovation. It is invoiced as a service and usually includes technical manuals, train-the-trainer sessions, and post-training assistance.
6. Turnkey Projects or Installations
“Here is everything working.” The provider designs, builds, and delivers the final operational solution. Ideal for industrial plants, data centers, or laboratories where the client seeks a single party responsible from start to finish.
7. Joint Ventures
Innovating by sharing risk and reward, in which two or more entities create an ad hoc company that combines assets, intellectual property, and human capital to exploit the technology. Keys: corporate governance, capital injection, and exit strategy (sale, IPO, dissolution).
8. Franchises
Expanding innovation in series. In addition to signage and brand reputation, the franchisee receives operating processes, software, and ongoing training. In return, an initial fee and periodic royalties are paid.
In short, each contract is a tool with its own purpose; some protect secrets, others share profits, or define who keeps the patent. Choosing the right form depends on business strategy, risk aversion, and scalability ambitions. In an ecosystem where time-to-market is crucial, understanding these eight formulas allows innovation to be turned into value without losing control—or patience—along the way.
If you need specialized support, we encourage you to request the free advisory service from the Galicia Economic Office.
