Abstract
This article presents a framework for analysing the factors which influence the mode of international technology transfer. The factors are divided into three groups, namely the characteristics of the receiving country, the transferor, and the technology. The framework of analysis is then applied to China which has a low capacity to absorb technology. Viable modes of transfer for each type of technology are suggested for small and medium sized enterprises (SMEs) and multinational corporations (MNCs). Since SMEs face more financial and human resource constraints than MNCs, they should generally choose strategic options which require fewer resources.
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