Technology acquisition choices for newly industrializing countries: The case of Taiwan

Abstract

AbstractThis article examines the determinants of technology development and acquisition for companies based in a newly industrializing nation. The actual selection of a method for acquiring a technological capability has to be analyzed at the firm level and is influenced by attributes of the technology in question, as well as by the attributes of the technology‐receiving organization. This article demonstrates that the selection of a technology transfer method has to be done on a case‐by‐case basis and provides several criteria. These criteria are, however, conditioned by the economic environment faced by the company, and government policies. Taiwan is chosen as an illustration in this article because it is a country trying to formulate a technology policy for its economy. Its days as a low‐cost producer of relatively unsophisticated goods are almost over. Yet the small scale of much of Taiwan's industry, growing technological protectionism, as well as changes in marketing and business organization in principal overseas markets, are some of the constraints on the ability of its companies to reach the cutting edge of technology in most industries. The article concludes by examining the role of the Taiwan government and indicating some policy directions. © 1993 John Wiley & Sons, Inc.