International technology transfer and its impact on innovation enhancement for firms based in Sri Lanka

Abstract

This paper presents research findings from industrial firms based in Sri Lanka who need to acquire new technologies from the external environment in order to compete and upgrade their innovation capabilities. We analyse some of the key challenges faced by the recipients of knowledge in international technology transfer projects from the perspective of technology receiver firms based in a developing country. Through this technology transfer process the receiver firms attempt to utilise knowledge, from the technology senders based in advanced countries, in order to help them upgrade their innovation capabilities. This upgrading process involves overcoming some challenges related to training provision, human resources, language barriers, complexity of transfer process, and recipient’s lack of absorptive capacity. We present a number of important managerial implications, especially relevant for technology receivers in developing countries.