Supporting innovation in Latin America and the Caribbean : successful examples of technology transfer promotion (original) (raw)
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In the last few decades, technology and knowledge have been considered very important resources in contributing to economic growth (Loren and Susan, 2005). The increased global competition for technological capabilities among developing and emerging economies has impelled several nations to look beyond their national boundaries for technological transfer. This technology acquisition drive among countries has led to the adoption of several mechanisms for innovation importation from developed countries to the developing ones. Various strategies have been adopted by different countries to stimulate the flow of technical knowledge ranging from direct to indirect ones, market-mediated and non-market mediated means. It is noteworthy to say that, the reasonable price associated with transfer rather than self-grown technical capabilities gears nations to opt for the former (Maskus, 2004). The catching-up phrase mostly attributed to the growth process of developing & emerging countries has b...
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International Technology Transfer emerged as a separate field of inquiry in the 1970s and has since inspired a large literature. This paper identifies and reviews the major aspects of the field. Policy responses of technology supplying firms and nations and of recipient countries are examined. Directions for further research are indicated. I International technology transfer emerged as a field of inquiry in the late 1960s and has, in the past decade, inspired a large literature.1 This paper attempts to review the major aspects of the field. A salient issue is the proprietary nature of much of technology. The latest technologies, particularly, are concentrated in relatively few companies in a few industrial countries. Moreover, the package of information, rights, and services commonly included in a technology transfer hardly behaves akin to a public good in the extreme definition of technology as freely available information. Recent empirical studies have measured significant costs associated with its transfer, borne by both technology supplier and recipient organizations. From these facts, as well as from the ever increasing need for technology as an input to economic growth, comes the conclusion that international technology transfers will continue to be made on a commercial basis, barring government-sponsored programs and the not inconsequential flow of information from journals, books, seminars, and reverse engineering. However, the proprietary nature of the most vital information-often protected under patent agreements and by considerable concentration in many industries-also makes the technology market a highly imperfect one. It is rendered even more imperfect and the "price" or compensation received for the transfer more indeterminate because the product market facing the technology recipient or user in his country is often oligopolistic or considerably short of being competitive. This is particularly so where the industry enjoys tariff protection or entry limitations. In several developing nations, however, even in the absence of these factors, sheer technological backwardness or lack of capital may mean there are relatively few potential technology recipients and final producers. To the international firm, an advantage in a foreign market-whether obtained from the relative scarcity of suppliers to the international technology market or INTRODUCTION: Overview of Issues Treated *Farok J. Contractor teaches at Rutgers University, Graduate School of Management. He is the author of International Technology Licensing: Compensation, Costs, and Negotiation (Lexington, MA: D.C. Heath, 1981) as well as articles based on data on U.S. technology company compensation and negotiation practices. Dr. Contractor also understands the recipient firm's perspective from five years with an Asian company. He holds a Ph.D. and an MBA from the Wharton School, University of Pennsylvania, and an MS in engineering from the University of Michigan. **Tagi Sagafi-nejad teaches at the Business School and the Center for Middle Eastern Studies at the University of Texas at Austin. In addition to studying Middle Eastern Political Economy, he has published articles on several aspects of technology transfer based on his research in the Middle East, Latin America, and the U.S. He is co-author and co-editor of the Technology Transfer Trilogy, a series of three books published by Pergamon in 1980 and 1981. Dr. Sagafi-nejad holds an MA and a Ph.D. from the University of Pennsylvania.
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