1. TECHNOLOGY TRANSFER TO DEVELOPING
COUNTRY
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 This particular chapter describes
 The role of R&D,
 Technological development in developed country,
 Critical factors of performance
 The model for developing nation for technology
transfer.

2. Issues In Developing Country
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 According to UNESCO,
 Around 60 per cent of the total world output,
 Only 11 industrially developed countries known
as the inventor of technology, produce product
relating to science and technology.

3. Qualification
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 Technological level
 Technical capability
 Absorption
 Assimilation
 Sub-process of internalize transfers

4. Mastery Of The Technology
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 The mastery of foreign technology do not
arise in exchanges between industrialized
countries in the same way as for developing
countries
 Issues
 Upon technology transfer, can host nation attain
the same?
 Between the industrialized countries
 Industrialized countries to developing countries
 It can range from mere transfer of production to complete
process.

5. Factor Affecting Technology
Transfer To Developing
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Country
 Financial  Language
 Technological resources  Religion and caste
 Low per capita income  Political instability
 Gross national product (GNP)  Labor strikes
 Unfair income distribution  Transportation
 Lack of hard currency  Telecommunication and
 Political conditions communication systems
 Ineffective bureaucracies  Unmodernized educational
systems
 Illiteracy
 Research facilities
 Riots
 Insufficient professional
 Social violence institutions for technologies
and researchers

6. Obstacle
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 Technology transfer is a sophisticated
process, the structure of which is beyond the
control of developing countries.
 Socially and culturally.
 Eg: adaptation and diffusion
 The technological output of technology
transfer is so fundamentally strange or
unfamiliar

7. Caused Of Failure (1)
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 These factors are not easily transferred:
 Knowledge
 Know-how
 Science and technology
 Management
 Intensifying global competition, that require,
 Investment capabilities
 Dynamic learning capabilities
 Organizational-operational capabilities
 Economic characteristics such as,
 Market size, degree of tariff protection, level of personal
income, market and information distortions

8. Caused Of Failure (2)
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 Availability of skills
 Political stability
 Substantial differences
 Widening gap in science and technology
capabilities
 Import of technologies requires resources capabilities
 HR skills
 Technical knowledge
 Information networks
 As a result – selection of appropriate
technology

9. How To Overcome Failure
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 In order to overcome the failure of technology
transfer, it is very important that:
 Long term interaction between host and home
country can be maintain so that it will ensure the
continuous co-operation from both host nation
and home nation.
 Marginal technology transfer can be stimulated
to a positive response.

10. Role Of Research and
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Development (R&D)
 Technological innovation, which may take the form of
technology transfer and/or interchange, can be
characterized as responding to both technology-push
and demand-pull influences in order to meet the local
or international conditions.
 Technology-push:
 Response to reduce costs through making changes
to scientific and engineering knowledge for new
product
 Demand pull:
 Respond to the exceed cost of production when
there are market for innovation to expands.

11. Technological Development In
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Developed Country
 Basically the common characteristics of
technological development in developed
country are:
 Present in the smooth linkages
 Every new step is incremental over the period of
time
 Needs to be supported by the material
 Knowledge based
 Knowledge-intensive societies
 New technology input requirement supplied by
host country

12. Critical Factors Of
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Performance
 Four main factors appear critical to the performance of nations in the
international market for technology-intensive products as follows:
 National orientation
 A nation’s use of directed action to enhance technology-oriented
production
 Socio-economic infrastructure
 The social and economic institutions that support and maintain the
physical, human, organizational and financial resources essential to the
functioning of modern, technology-based industrial nation.
 Technological infrastructure
 The institution and resources (physical and information-based) needed to
apply technology-intensive manufacturing process and to develop,
manufacture and market technology-intensive products.
 Product capacity
 The physical and human resources committed to manufacturing and the
efficiency with which these are used.

13. Developing nation:
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 “People’s technology transfer” via formal and
informal channel.
 Through products, process, techniques and
materials
 Expatriate
 Technical assistance
 Physical transfer

14. Model for developing nation
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 Considering external and internal factors
 Never based purely on internal interest
 Any technology transfer process is driven by mutual forces
(external and internal) elements
 In industrialised country, innovation process free from outside
forces
 Three groups of actors involve interlinked internal and external
relationship
 First group: Developing countries:
 Constitute the demand side
 Second and third group: Develop countries and international
agencies
 Constitute the supply side

15. Model for Developing Nation
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