6.25 The combination of people, skills and networks is usually a key driver for forming a JV, however, it leads to a number of complexities. Thought needs to be given to the incentives which a particular approach might lead to - individuals sourced from either the public or private sector may have split loyalties as between their existing allegiances and longer-term career progression.
6.26 Contracts with the private sector participant for provision of JV staff should be structured and priced carefully to avoid or minimise potential conflict between the desire to drive through ongoing efficiencies in the JV and the desire for the private sector participant to retain revenue streams under the staff resource contract.
6.27 Incentives can be offered to encourage staff to transfer, however, consideration will need to be given to the potential conflicts of interest this might introduce.59
6.28 An important incentive may come in the form of an equity stake in the new entity for key members of staff. The rules governing civil servants have been clarified in order to facilitate civil servants taking equity shares in companies where appropriate.60 This can be particularly relevant when there is a transfer of technology in which staff have been centrally involved.
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59 For Public Sector Research Establishments see Good Practice for Public Sector Research Establishments on Staff Incentives and the Management of Conflicts of Interest, Office of Science and Technology. Available from the BIS website: www.BIS.gov.uk/files/file12076.pdf.
60 See paragraph 4.3.8 of the Civil Service Management Code.