TECHNOLOGY TRANSFER TO DEVELOPING COUNTRY

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.

1

Issues In Developing Country

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.

2

Qualification

Technological level Technical capability Absorption Assimilation Sub-process of internalize transfers

3

Mastery Of The Technology 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.

4

Factor Affecting Technology Transfer To Developing Country Financial Technological resources Low per capita income Gross national product

(GNP) Unfair income distribution Lack of hard currency Political conditions Ineffective bureaucracies Illiteracy Riots Social violence

5

Language Religion and caste Political instability Labor strikes Transportation Telecommunication and

communication systems Unmodernized

educational systems Research facilities Insufficient professional

institutions for technologies and researchers

Obstacle

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

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Caused Of Failure (1)

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

7

Caused Of Failure (2)

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

8

How To Overcome Failure

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.

9

Role Of Research and 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.

10

Technological Development In 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

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Critical Factors Of 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.

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Developing nation:

“People’s technology transfer” via formal and informal channel.

Through products, process, techniques and materials

Expatriate Technical assistance Physical transfer

13

Model for developing nation

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

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Model for Developing Nation15