sem 5 -t.t- week 3
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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.
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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.
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Qualification
Technological level Technical capability Absorption Assimilation Sub-process of internalize transfers
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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.
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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
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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
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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
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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.
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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.
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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
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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