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Long Range Planning, Vol.
22, No. 4, pp. 115 to 124, 1989.
0024-6301/89 s3.00 + .oo
Printed in Great Britain
Pergamon Press plc
115
Transferring Technology to
Developing Countries Critical
Factors for Success
Christian N. Madu
This art ic le int roduces a decision f ramework far technology
t ransfer f rom the developed countr ies DCs)
or
mult inat ional
corporat ions MNCs) to less developed c ountr ies LDCs).
This f ramework considers technology as an important st rategic
variable in nat ional development planning. By considering
technology t ransfer in a
form l
process the L DCs and
MNCs may reduce the risks associated with the t ransfer of
inappropriate technology. This f ramework takes a hol ist ic or
systemic view of technology t ransfer and suggests how
technology can progress through research and development .
Technology progression may lead to long term economic
growth for LDCs.
Introduction
Technology transfer from the developed countries
(DCs) or multinational corporations (MNCs) to less
developed countries (LDCs) has received increased
attention as evidenced by the numerous publications
in this area. Several definitions of what constitutes a
technology transfer have also emerged leading to
some ambiguity on the subject. Derakhshani’
defines technology transfer as the acquisition,
development and utilization of technological
knowledge by a country other than that in which
this knowledge originated. This definition is
adopted here.
However, we shall narrow our
concern to include only those occasions when the
technology transfer process involves the transfer of
production facility(s) to the LDCs.
LDCs need Western technology to alleviate their
economic diffrculties.2.3 With some noted excep-
tions,
however, technology transfers have not
generally been successful. This has prompted some
reviews of what has gone wrong in the transfer
process. One major factor often cited is that the
Dr Christian Madu is a member of the staff of Lubin Graduate School of
Business, Pace University, New York.
MNCs do not transfer the appropriate technology
to the LDCs.‘.j Capital-intensive rather than labour-
intensive technologies are often transferred to
LDCS.‘,~ Other noted flaws include the legally
binding provisions in technology agreements (refs 7
and 8, pp. 129-135). These legal clauses reduce the
willingness of the receptors to produce the same
technology themselves.
The problems outlined
above are external. The MNCs are often blamed for
not facilitating the transfer process. However,
internal factors and poor planning on the part of the
receiving countries also contribute to the failures of
technology transfer. This paper proposes a ‘Deci-
sion-Making
Framework
for
Technology
Transfer’. It considers technology as an important
strategic variable that must be integrated into a
nation’s development plan. The framework pro-
posed here serves to enhance the decision-making
capabilities of developing countries and multi-
national corporations. The MNCs benefit by under-
standing the socio-economic factors that influence
the success of technology transfer and development.
By using this formalized approach, the LDCs will be
able to consider alternative technologies and factors
that may influence their successes. Through evalu-
ation oftheir strengths and weaknesses, a decision on
the appropriate technology is made.
Even though technology is considered by develop-
ing countries as an important strategic variable, it is
often not integrated in the national development
planning process.9
The Technology Atlas Team9
notes that planners in LDCs view technology as
constant and therefore do not consider it as a
planning variable. Figures 2 and 3 are also intro-
duced to show the factors that influence the success
of technology transfer, and the derived benefits
from successful transfer of technology, respectively.
Table 1 lists some of the known decision-making
techniques and how they can be applied in tech-
nology transfer situations.
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Long Range Planning Vol. 22
August 1989
Background
Rostow-‘argues that technology transfer will lead to
increased economic opportunities for developing
countries. Many of the less developed countries
view technology transfer as a viable alternative to
solving their complex economic problems. While
there are many who support Rostow’s model,
critics have argued that the MNCs are so powerful
that they can threaten the sovereignty of the LDCs.‘O
Others have also argued that the wrong type of
technology (capital intensive as opposed to labour
intensive) is often transferred to developing
countries.”
Technology transfer in itself will not lead to
economic growth. Rather, the ability to maintain
and fully utilize the appropriate technology may
lead to long term economic growth.” Ito’ notes that
a successful transfer can occur only if the recipient is
suf-frciently capable of maintaining an introduced
production system. Without this capability, it is
difficult to modify or improve technology. Gee”
suggests that managers must be both oriented
toward innovation and sensitive to their environ-
ment in order to successfully implement new
technology. Wallandei? suggests the need for
managers in LDCs to develop managerial skills such
as the ability to plan, organize and solve problems.
Other problems confronting technology transfer
can be considered internal. Factors such as socio-
political and cultural value systems affect tech-
nology transfer. Hill” identifies some of the effects
of technology transfer, including the break-up of
social structures, and suggests analysing these effects
at a conceptual level. Harvey” introduces a step-by-
step process by which MNCs can assess the market
for technology in LDCs. This procedure requires a
critical evaluation of the social and economic impact
of technology on the LDCs. Wigglesworth’ further
suggests the need to understand the cultural value
system of the country to which technology is being
transferred. Meleka” also argues that MNCs must
adapt their behavioural strategies to changing
environments. The emphasis on the socio-political
and cultural value systems of the receiving countries
shows that structural factors can influence the sucess
or failure of technology transfer.
Technology
transfer is
not without
its
consequences.‘8-‘o Galtung” argues that imported
technology brings with it many unwelcome ele-
ments of Western culture. Such elements as social
inequality and dicerent perceptions of relations
between people and nature were identified. Mytelka
(ref. 8, p. 140) argues that technology transfer
creates a ‘taste transfer’. This may result in additional
financial strain on
the
receiving
country.
Poznanski2? argued against these concepts. How-
ever, what seems to emerge is that technology
transfer will almost inadvertently lead to a change in
the society. Gee’? argues for a gradual implemen-
tation of new technology over a long period of time
in order to effectively plan and manage the change
inherent in the transfer. Sachdev and DareshuriZ3
note that attitudes of scepticism have begun to
evolve, and critics of multinational corporations
often label policies of technology transfer as ‘social
irresponsibility’. These critics argue that technology
transfer has led to social retardation, economic
stagnation and environmental pollution.23 How-
ever, some of the failures of technology transfer may
be due to the lack of effective leadership and
commitment to successful technology transfer in the
LDCs.” Decision-makers in LDCs are often not
certain of the technology they need, and hence,
inappropriate technology is transferred.‘,jJJ LDCs
often enter into licensing agreements with
MNCS.‘,?~-~’ Restrictions in these agreements tend to
limit the extent of technology transfer.28 Thus, the
public policies
of governments
can actively
influence the success or failure of technology
transfer.‘““’
Winpisinger”
argues against U.S. multinational
corporations tranferring American technology; his
premises being that public funds are used to finance
research and development and the resulting benefits
should be reaped only by Americans. Kim and
Kim” note that MNCs are becoming more hesitant
towards technology transfer. Some speculated rea-
sons include the emergence of the so-called ‘newly
industrialized countries (NICs)’ as exporting
nations. This increases competition in the inter-
national and local markets. However, Quintana”
argues that co-production between MNCs and
LDCs can in fact benefit both parties by ensuring
employment in both DCs and LDCs. She shows
that transfer of technology may lead to the
extension of a product lifecycle, since the pace of
development and change in product line is faster in
the West. MNCs can protect and expand their
markets by increasing their role through appro-
priate research and development for LDCs.“,” Das36
found no basis for the claim that host countries are
being denied the R & D carried out in the parent
country of MNCs.
These citations indicate some problems in the
transfer of techno ogy and pinpoint some areas of
discontent. In this paper we synchronize these ideas
and build up a conceptual model to simplify the
decision-making process for technology transfer.
A Decision making Framework for
Technology Transfer and
Development
The model presented in Figure 1 shows a process
towards decision-making on the transfer, adoption
and development of appropriate technology. The
first step in the model is to identify the active
participants. This process commences in the
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Successful Technology Transfer
117
Identify ‘Active’ Participants in Decision
Making (i.e. Interest groups, Engineers,
Scientists, Economists, Planners,
Environmentalists etc.)
t
Define Needs and Objectives
J
ow is the Traditional I Existing Technology
Identify Potential Strengths and Weaknesses
1
What Existing Technology(s) can Satisfy the
Stated Needs 7
4
Evaluate These Technology(s) on the Basis of
Your Limited Resources (i.e. Human Resources,
Capital etc.)
See Table 1
+
Select the Appropriate Technology(s)
I
I
t
I
Set Goals (Short Long Term) and Verifiable
Standards to Measure Success or Failure of the
Transfer Process.
I
I
1 I
Extend the Horizon of the Transfer
Process to Include Awareness Program,
Education and Training.
1
Reevaluate Your Needs, Goals,
Objectives and Standards.
A
Adopt and Implement the Technology(s) that can
Best Satisfy the State Needs Given the
Strengths and Capabilities Outlined.
Establish a Control System to Periodically
Evaluate the Success and Failures of the
Introduce Innovative Progmms Through Research
and Development (R D) to Further Modify end
Improve Technology.
I
Figure 1. The technology transfer process
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118
Long Range Planning Vol. 22
August 1989
ministry or department of planning and develop-
ment in the respective LDCs. Although the govern-
ment may initiate this process, it does not suggest
government ownership of any subsequent industries
that may spring up. However, government partici-
pation in this initial phase can be of help to
entrepreneurs in LDCs. The ‘active’ participants are
those who will be influenced or will influence the
decisions arrived at. For example, Itoh suggests the
active participation of local experts like engineers in
technology transfer. These experts have a working
knowledge of conditions that prevail in LDCs,
making their participation in the design of appro-
priate technology crucial to the successful transfer
process.
The participation of different interest
groups will lead to idea generation. The participants
will identify the country’s needs and wants, taking
into account the country’s resources and culture.
But, effective leadership is needed to help the
participants define and formulate these needs into
realistic objectives.
Before a new technology is adopted, the scope and
limitations of the traditional or existing technology
has to be studied. The knowledge gained from this
process will help in evaluating other areas of
technology that can better satisfy the LDCs’ needs.
The participants should also identify the strengths
and weaknesses of the LDCs in terms of production.
Two of the strengths of LDCs are in human and
natural resources. Technology adopted should be
able to make efficient use of these strengths and
capabilities instead of undervaluing them in analys-
ing the LDCs’ needs. Weaknesses identified may
also suggest the limitations in the system, the need
for improvement and the need to develop more
capabilities before the right type of technology can
be transferred.
Needs and objectives identified have to be realistic
and achievable in the light of the appropriate
technology. Each technology is evaluated in terms
of its appropriateness to satisfy the stated needs, the
ease of transfer and the ability to make efficient use
of the existing capabilities and resources. Several
techniques can be applied in evaluating appropriate
technologies. These different decision-making
models are presented in Table 1. The list is not
exhaustive of all the available decision-making
models that can be applied to technology transfer
situations. Madu2’ shows how the analytic hierarchy
process can be applied in determining the appro-
priate technology. Hartman et ~1.” give an extensive
literature on some of these decision models, show-
ing how they can be applied to information-
processing strategies. These models can also be
applied in any step of the transfer process when it is
deemed necessary to reach a solution. When a
decision on the appropriate technology is made,
negotiations with MNCs commence. These nego-
tiations should be flexible and should not limit the
transfer of technology through legal clauses and
government controls. A set of goals (both short and
Table 1. Techniques for technology transfer
Nominal Group Technique
The decision on the appropriate technology to transfer
involves environmental uncertainties. ‘Nominal’ groups
that will work in a structured environment where discus-
sion is strictly controlled is required. This atmosphere will
lead to the generation of lists of problems and solutions
that may confront the technology. Decisions on which
technology to transfer will be based on ratings by group
members.62
Stakeholder Analysis/Co-optation
Successful technology transfer requires that change be
properly managed. The decision-maker resorts to an
innovative approach to manage change by including the
stakeholders in the decision-making process. The recom-
mendations made by these interest groups will be used by
the decision-maker in arriving at the final decision on
transfer of technology.63,s4
Scenarios
Various environmental conditions that may influence the
transfer process are specified. The most probable future
conditions are stated and used as the basis for making the
final decision.65
Delphi
The environmental uncertainty can be best managed
through the use of external experts. The judgement of
these experts on probable events and responses, and their
innovation can be used as a basis for selecting the
appropriate technology.66,67
Social Judgement Analysis (SJA)
Those affected by technology transfer use different
judgement processes to arrive at conclusions. The logic
behind these judgements is studied by group members. A
consensus for the resulting decision is arrived at.6*
Morphology
Technology transfer is composed of several complex
factors ranging from socio-economic to political. These
factors need to be integrated into the overall decision-
making process. The decision-maker acts on these to
arrive at a conclusion.6s
Analytic Hierarchy Process (AHP)
This requires the development of priorities for the different
technologies based on the decision-maker’s judgement.
The appropriate technology is selected, based on a
quantitative solution to these rankings.70.7’
Optimization
Though difficult to achieve in the technology transfer-
type environment, it can be applied at a micro level for the
allocation of limited resources.72
Simulation
Experimental analysis uses a prototype model to test the
effect of the technology and how it can enhance the
LDCs’ development objectives.73
long term) must be outlined, along with measurable
standards. The success or failure of the technology
transferred will depend on whether the technology
can meet these standards by satisfying the set goals.
Before the technology is finally adopted and
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Successful Technology Transfer
119
implemented, an awareness program that includes
education and training should be in place. The
purpose of this is to reduce the level of resistance to
technology, create the skilled manpower needed for
the transfer and increase the managerial potential
necessary to operate a production process. This
programme thus serves as a process of managing
change. Rodrigues”
notes that successful transfer
will require the management to change. In many
societies change is dreaded since it can be catastro-
phic in its effects. The avoidance strategy may be to
reject change. However, change can not be avoided
in any dynamic system. Bennis39 argues that the only
way to change organizations is to change their
culture (i.e. change the system within which people
live and work). The process of technology transfer,
it is expected, will eventually lead to the transforma-
tion of societies. But the introduction of new
technology has to follow a steadily developing and
expanding process in order to limit the detrimental
impact of sudden change.
Societies’ cultural value systems will need to change
to accommodate new technology. In point of fact,
the new technology may further enhance existing
culture without being at odds with it. Education
reduces the resistance to change, especially when the
society becomes aware of the need for technology in
improving the quality of life. Thus, this need
becomes harmonious with national goals to intro-
duce the appropriate technology.
Adoption of technology should not end the process
of technology transfer. There is a need to establish a
control system to continuously or periodically
evaluate the successes or failures of the new
technology. Some of the failures may be traceable to
the technology production process itself and may be
corrected. Failure may also be due to poor planning,
setting of wrong standards, or poor implementation
of technology. When such failure occurs, there may
be a possibility that an inappropriate technology
was transferred. Correcting the mistake due to the
transfer of inappropriate technology will be very
costly. Decisions on technology transfer are difficult
to reverse once implemented. The decision frame-
work introduced here will therefore help the
planners of technology transfer in reducing some of
the risks and uncertainties they are faced with.
Through this model, LDCs can integrate tech-
nology transfer and development into their national
development plan.
The success of the introduced technology in
satisfying the stated needs and objectives will be an
incentive for further advancement in technology.
Advancement in technology can only be achieved
through innovation and research and development.
solow,*
the 1987 Nobel laureate in Economic
Science has been quoted as noting that long-term
economic growth can only be achieved through
technology progression.
Factors for Successful Technology
Transfer
In this section, we discuss some of the factors that
lead to the successful transfer of technology. The
eight major factors identified are shown in Figure 2.
Needs and Objectives
The active participants will identify agreeable needs
and objectives. They identify the problems and the
ability to satisfy and solve these problems. The
causes of the problem should also be isolated. The
needs generated should be prioritized using a scale,
since the constraints on the system due to limited
resources, may make it difficult to satisfy all needs.
Objectives are then formulated in light of these
needs and the ability to satisfy them. Thus, the
objectives have to be realistic and achievable.
Clarity in the objectives further improves the ability
to implement and evaluate.
Capabilities
The capabilities identified can be in terms of human
resources, capital (as in the case of some OPEC
members), natural resources, land and others. Some
of these capabilities will enhance the growth of
particular industries and make it cheaper to transfer
certain forms of technology. A nation should also
consider its weaknesses and explore the possibilities
of improving them over time.
Education Training Research and Development
There is a need for appropriate educational systems
in LDCs. Singh” notes that this is a way to achieve
effective research and development (R & D) pro-
grams. However, the educational system adopted
has to be appropriate to the needs of the developing_
country. Adler” suggests training some nationals ot
LDCs in the West in areas such as productivity
improvement, and to supplement the training with
industrial exposure. Ito” mentions that in order to be
able to modify and improve technology, the
recipient of the technology must be sufficiently
capable of maintaining an introduced production
system. From these comments, it becomes apparent
that the capability to modify and improve tech-
nology can only be achieved through proper
education and training.
Innovation and technology modification can only
exist if those concerned have a full understanding of
the technology. Utterback,” among others, has
done extensive research on the process ofinnovation
in the West. As noted by Kim and Kim,33 the results
of these studies cannot necessarily be generalized for
developing countries. They note that only very few
studies have been done on the process of innovation
for developing countries. Innovation in industry
involves research and development. It brings tech-
nological change, the impact of which on economic
growth, industrial productivity, international com-
petition and trade is widely recognized.43 The
postulation of long-term economic growth through
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120
Long Range Planning Vol. 22
August 1989
Identification and Implementation of
Appropiate Technology
Research and Development
Figure 2. Critical factors for successful technology transfer
technology progression is also widely accepted.M
Thus, the issue of R & D demands adequate
attention if technology transfer is to succeed.
Andrews and Miller+’ suggest that the training of
local manpower is necessary to provide the know-
ledge base for technology transfer. They further
argue that this will permit productive work and the
transfer of skills to take place simultaneously.
Crawford,45.?6 Singh** and Rodrigues38 all stress the
need for R & D in making the transition into
creative high technology. In the past, the lack of
adequate R & D has created obstacles in the transfer
of high technology. Pierson’j notes that MNCs
should take an active part in adopting the appro-
priate R & D for LDCs. The MNCs can use their
pool of technical staff to help the LDCs, while at the
same time increasing their future stake.
Others note failures of technology transfer due to
insufficiently trained manpower. Maier” attributes
the failure of the transfer of computer technology to
China to be the result of a poor understanding of
software and the small number of trained personnel
in the computer field. Similar results were obtained
in Latin America and Kuwait. The lack of commer-
cial software in Spanish and the scarcity of trained
personnel are cited as reasons for the unsuccessful
transfer of computer technology to Latin America.*
Ibrahim” cites the lack of acceptance of computer
technology in Kuwait. Poznanskiz blames the lack
of commitment to R & D by the leaders of LDCs
for some of the failures of technology transfer.
The extensive literature in this area shows the great
importance of R & D to the successful transfer of
technology. Emphasis is now being focused on
proper education and training. Wigglesworth”
stresses the barriers of culture and language differ-
ences in training. He further hypothesizes that the
value system of the country to which technology is
being transferred should be given adequate atten-
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Successful Technology Transfer
121
if the technology is to succeed and thrive in the
LDCs. By this is meant the management of
processes (i.e. production processes), of human
resources, and of capital. An effective management
will lead to an efficient utilization of limited
resources. Innovation through R & D can also be
enhanced through effective management. Tsumurij
further points out that the effectiveness of tech-
nology and skill transfer is a function of the
corporate culture and management culture of the
parent firm.
tion in the training process. Copelandj” notes that
direct transfer of U.S. training does not necessarily
work well overseas. He suggests a careful analysis of
receiver and sender countries to determine the
appropriate training. Andrews and MilleP also
stress the need for the training of LDCs’ local
manpower. Terpstraj’ notes that maintaining
R & D in the domestic market provides a greater
access to experience and expertise. Chenj’shows that
the presence of MNCs and their participation in
R & D in Hong Kong enhances the rate of
technological diffusion.
In summary,
it is shown here that education,
training, and R & D are structurally interdependent
in the overall problem of successful technology
transfer. The appropriate system in each case has to
be transferred to the LDCs in order for the receiving
country to maintain and progress technologically.
Identification and Implementation of Appropriate
Technology
Komoda” notes that the issue of appropriateness of
technology to an LDC may well be the most
important issue in technology transfer. This issue has
received great attention; as has often happened, the
MNCs are blamed for transferring inappropriate
technology. This is because the technology is often
capital intensive and ill-suited to the local produc-
tion needs.’ The success or failure of technology
transfer also depends on the ability of the receiving
nation to identify the right technology for its
needs.j’
Todd and Simpson’ mention that the
inappropriateness of certain technology transfers
may be as a result of dependence on existing
technology for regulating development in the
LDCs. Technology, which is structurally depen-
dent, has to be designed to suit the needs of the
receiving countries. Thus, at the design stage, the
joint participation of local and MNC experts is
needed to arrive at an appropriate technology.
Madu?’ shows how appropriate technology can be
selected and re-evaluated using both the analytical
hierarchy process and modified general systems
theory.
~l/lanagement Process
Gee” writes that in order for the implementation of
new technology to be effective, managers must be
innovation-oriented. Managers need to be both
sensitive to their environment and committed to the
new technology. Similar views are postulated by
Wallender,” who concludes that managers in
developing countries need to develop the ability to
plan, and diagnose and solve problems. Rodrigues3’
also notes the need for managers to be familiar with
organizational behaviour and the dynamics of
organizations. This will enable innovators to imple-
ment change in an orderly manner.
The management process is a very important aspect
of technology transfer. An effective management of
technology and the technology process is necessary
The issue of technological change also requires the
ability of management to manage change. Change
has to be anticipated and planned for in any growth
or deciine process. Futurologists like ToffleP argue
that a system may restructure itself over time since it
may collapse into chaos and anarchy if change is not
managed. The ability of management to forecast the
future will greatly enhance the ability to manage
change and avoid a crisis situation.
The management process postulated here goes back
to the appropriate education and training discussed
above. The managers in LDCs have to be trained to
manage not only processes and the work-force but
also the change itself. They have to be innovation-
oriented if they wish to meet the challenges of
keeping the transferred technology current with the
changing needs of the LDCs. They must develop a
predictive ability and be able to understand and
interpret their environment correctly. They should
also understand the interaction between theirs and
the global environment, and how it influences their
decision-making process.
The Role of Public Policy
Some have argued that public policy in LDCs makes
it difftcult to transfer technology successfully.
Coughlin,% in showing how public policy affects the
transfer of technology, notes the case of Yugoslavia,
where foreign exchange restrictions, the inflexi-
bility of joint ventures,
and minority ownership
restrictions have deterred foreign investments.
BaransotP points out that public policy can pro-
mote technology flow if administrative controls can
be replaced with market mechanisms. He suggested
a shift of public policy from supply-push to
demand-pull, the encouragement of indigenous
design and engineering capabilities through finan-
cial mechanisms, and the allowance of local enter-
prises to negotiate foreign collaboration agree-
ments. Millman3’
notes that governments viexv
technology transfer as part of the foreign policy
arena. Governments can therefore have a signiftcant
impact on promoting or hindering the transfer
process. Capstickj’ points out the need to analyse
government regulations, political history and econ-
omic stability before MNCs engage in joint ven-
tures in LDCs.
The LDCs face a multitude of socio-political and
economic problems.j8~jy
Some of these factors have
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123 Long Range Planning Vol. 22 August 1989
created an unhealthy business atmosphere and in
ment. An added incentive is that the MNCs also
themseles make it difficult to transfer technology.
expand and safeguard their own markets.“.” Thus,
However, it is important for the MNCs and DCs to
technology transfer should not be viewed as a one
recognize that they can play an effective role
way process but rather as a symbiotic and synergistic
through technology transfer if they are willing to
process. Because these benefits also improve the
commit themselves to the needed research and
quality of life of LDCs they may lead to an increase
development processes. It is hoped that effective in productivity. The individual governments
technology transfer can help through its role in
further achieve stability through the expansion of
improving social and economic conditions to
the economy. Internationally, other nations benefit
transform and change the atmosphere in LDCs and
through mutual and equitable trade agreements.
genuinely improve the quality of life.
Technology transfer is not without its disadvan-
tages. Problems such as social inequality, social
Benefits of Successful Technology
Transfer
retardation, economic stagnation and environmen-
tal pollution are often cited.8.z’.“3Some of these may
be as a result of poor planning for technology
transfer.*? Problems such as environmental pollution
Successful technology transfer will help to uplift
both the social and economic conditions of develop-
ing countries. These benefits are often cited in
supportive literatures. Benefits such as long-term
economic growth as a result of technology progres-
sion and the increase in direct foreign investments
are often cited.26 These benefits are achieved if the
economy and the political structure become more
stable and there is innovation, research and develop-
may not be avoided but can be controlled.
MadeufhO and Bosworth’j’ presented economic
models to measure transfer profitability. Such
models do not capture the intangibles that have to be
taken into consideration in technology transfer.
Therefore, technology transfer has to be studied at a
conceptual level. Any type of measurement or
modelling devised should be able to consider both
Technology Progression Through
Research and Development
increased Government
Revenues Through Tax
Collection
More Equitable Trade
Agreements
Benefits from
Successful Transfer of
increased Market Share
For Participating MNCs
Improved Quality of Life
Figure 3. Benefits from successful technology transfer
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Successful Technology Transfer
123
the quantitative and qualitative factors mentioned.
This further justifies the use of the decision-making
models listed in Table 1. Models such as the analytic
hierachy process that can be applied to multicriteria
decision-making is of great importance in the
transfer of technology. Its application to this
problem was shown in reference 24.
It is our belief that the advantages of technology far
outweigh the disadvantages. More stands to be
gained if technology is appropriately transferred.
Decision making Techniques for
Technology .Transfer
Some of the known decision-making techniques are
outlined in Table 1, which shows how they can be
used for effective technology transfer decision-
making. These techniques can be applied in any of
the stages given in Figure 1 to arrive at a decision.
The assumption made in this process is that we have
rational decision-makers who are knowledgeable
enough and will be able to make the best decision.
Evident from the study of technology transfer is the
problem of measurement. Some of the reasons for
this are the multitude of socio-political and econ-
omic factors that come into play in the issue of
technology transfer. It is difficult to obtain a
measurement that will suggest a unique solution in
the global or macro concept. However, at some
micro levels, this may be achieved. Thus, the use of a
group of experts and the application of these well-
known decision-making models, when appropriate,
can improve the quality of the technology transfer
decision-making process.
Conclusion
This paper examines the problems of technology
transfer from developed countries or multinational
corporations to less developed countries. A frame-
work is developed to show the planning, implemen-
tation, control and future progression of technology
through research and development. Decision-mak-
ing techniques that can be applied in any stage of the
technology transfer are identified and it is indicated
how they can be applied. The opposing views of
technology transfer are stated and the decision on
how to successfully transfer technology is arrived at.
The derived benefits and disadvantages of tech-
nology transfer are also identified. It is the belief of
the author that the advantages of technology
transfer outweigh the disadvantages if the tech-
nology is successfully transferred. This paper thus
provides a decision framework for considering the
technology variable in national development plan-
ning.
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