Canadian technology transfer to developing countries through small and medium-size enterprises

Abstract

This paper is based on a two-sample study of Canadian small and medium-size manufacturing enterprises (SMEs) that transfer their technology abroad. One sample covers those SMEs transferring technology to the largest or more active Third World countries; the other concerns Canadian SMEs transferring technology to industrialized market economies. Both samples are representative of their respective populations. The paper tests the usefulness of current theories of multinational firms (based on the study of large corporations), and reviews the appropriate technology debate. It also characterizes the manufacturing SMEs that are currently selling technology in the global market. It confirms much of the received theory of multinational corporations. The SMEs studied are very active in research and development, combine technology transfer and foreign direct investment whenever possible, and occupy large portions of the domestic (and often international) market. Their technology (centered on niches) is only complementary to that of large MNCs, not an alternative. This finding is contrary to some aspects of appropriate technology theories.