madu transfering technology to developing countries

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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.



116

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



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



118


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




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



120


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-




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



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




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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madu transfering technology to developing countries

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