Hong Kong

Abstract

Hong Kong has been exporting technology to other developing countries through its foreign direct investment in manufacturing. Although Hong Kong does not have a large capital goods sector, it does produce certain modern machinery for plastics production. In addition, Hong Kong manufacturing firms act as an intermediary in the two-stage transfer of technology from developed to developing countries in the process of which adaptations are often made. More importantly, product designs which are the great strength of many Hong Kong manufacturers are often passed on to the host countries via foreign direct investment and the subsequent diffusion processes. Lastly, Hong Kong manufacturers also export ‘software’ technology such as management techniques, marketing connections and labour skills to the developing host countries.