The Critical Factors for the Successful Transformation of Technology from Developed to Developing Countries

Abstract

The importance of international technology transfer (ITT) for economic development can hardly be overstated. Both the acquirement of technology and its dissemination foster productivity growth. As invention and creation processes remain overwhelmingly the province of the OECD countries, most developing countries must rely largely on imported technologies as sources of new productive knowledge. However, considerable amounts of follow-on innovation and adaptation occur in such countries. This paper explores recent international technology transfer issues between developed and developing countries. The paper will investigate technology transfer from the perspective of innovation systems, and identify critical components for the successful transformation of technology. Based on literature, findings emphasize on the development of learning system to overcome the barriers and promote international technology transfer in the long run. The focus of this paper is to study government’s technology policy and its influence on international technology transfer as well. Due to the ever changing environment of world politics and economy, there are numerous uncertainties in policy making for every country. It is not uncommon some policies cannot meet government’s original requirement as they were legislated. The rapid development of high technology has made stable technology policy a difficult task. Therefore, it is necessary to study the causal factors and intrinsic relationship of issues involved.