M & N, an Indian leading automobile company, is building electric vehicles that will cover 300 kilometers on a single charge in collaboration with Pininfarina, the Italian car designer company. Which type of foreign

M&N, an Indian leading automobile company is building electronic vehicles that will cover 300 Kms. on a single charge in partnership with Pininfarina, the Italian car design company for getting advantage in technology. M&N looks to go on an overdrive in the zero-emissions category. The market for electric vehicles is minuscule in India at the moment and is characterized by high vehicle prices, low single charge running range and weak design aesthetics. This type of collaboration between M&N and Pininfarina is called as Technical Collaboration . In case of technical collaboration, the inflow of foreign technology takes place in the domestic (host) country. Technical collaboration includes integration of foreign technology with domestic (indigenous) technology. In technical collaboration, the foreign company provides technological know-how, professional services and expertise, installs automated machineries, etc., in the domestic country. Here, an inflow of modern technology takes place from the developed country to the developing country. Technical collaboration helps to remove an existing technological gap. Therefore, the governments of developing countries encourage such collaborations. In developing countries, most of the foreign collaborations are technical in nature. It is a win-win situation for both M&N and Pininfarina as one has understanding of market and other is strong in technology where each can benefit from each other strengths while offsetting their weakness to increasingly expand and diversify in growing market like India.