in most cases, a technology pa involves the transfer of know-how, technology, or expertise from a developer to the recipient. the transfer of certain rights from the developer of a technology, process or know how to the recipient, in return for a fee or share of royalties. the parties agree to create a new entity together, by both contributing equally, and then share the revenues, expenses, and control of the enterprise. it implies the creation of a formalised link between companies, with the sharing of commercially sensitive information to allow the development of new technologies, processes or products.