International technology transfer : issues and policy options

Abstract

Technology is a vital part of the development process, a necessary input into all activity. Because of the historical domination of research and development by developed countries, a very large part of the technology used is transferred from developed countries. The transfer raises four major issues: those of the costs of the transfer, the appropriateness of products and techniques which are transferred, the effects of the transfer on learning and technological development in LDCs, and the effects on independence. The paper considers the consequence of the transfer and the range of policies that might be adopted, nationally and internationally, in relation to each of these issues. It is argued that the appropriate policies will vary according to the stage of development of each country, its technological capacity and its own objectives. However, in general it is concluded that an active technology policy is called for if the costs associated with technology transfer are to be reduced and the benefits increased.

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