International technology transfer and development of technological capabilities: A theoretical framework

Abstract

The author examines policy issues concerning international technology transfer. Three key criteria are examined and it is argued that these criteria are necessary for assessing the success of international technology transfer: the costs of technology transfer, the assimilation of the imported technology, and the extent to which technology transfer contributes to the development of indigenous technological capability of the technology importing enterprise and economy. The technology transfer experiences of several countries are examined in the context of these criteria. A theoretical framework that links issues concerning contents of technology transfer with the levels of technological capability is presented. The implications for policies and strategies concerning technology transfer are examined.