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Two major approaches have prevailed on the trade of technology between developed and developing countries. The first looked at it as a conventional trade of any other commodity; the second saw it as a totally different kind of exchange, whose complexity makes it very difficult to grasp. Neither of these approaches have, in fact, made a thorough analysis of the situation, and are therefore of little use to policy–makers and decision–makers at the level of the firm. The trade of technology between developed and developing countries, commonly known as 'technology transfer', has its own characteristics and specifics. This paper attempts to analyse some of the important issues and processes involved, looking empirically at contractual agreements, import channels and negotiations between the two parties involved. It deliberately takes the viewpoint of the developing countries and draws heavily from the experiences of Algeria (1967–77) and Latin American countries.
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