Transfer of Technology to Developing Nations: Towards a Broad Conceptual Framework

This paper is presented in four parts. In the introductory part, the importance of ‘technology gap’ as one of the main explicators for the differences in the economic conditions of the DC’s and LDC’s is identified. In part II, two streams of international economic theories dealing – directly or indirectly – with technology transfer are examined. Their inadequacies to explain observed phenomena, among many LDC’s are identified. In part III, a few “strategic” and “structural” variables are identified to explain the observed phenomena. Based on these, 12 propositions are hypothesized which may, on further testing, provide a better explanatory and probably predictive base for the technology acquisition behaviour of LDC’s. In the last part, an attempt is made to relate the strategic and structural variables and the 12 propositions into a conceptual scheme. Policy implications are also briefly explored.