The Difficulties of Achieving Technology Transfer: Issues of Absorptive Capacity

Abstract

This article aims to elucidate theoretically the problematic dealing with the constraints of the success of technology transfer process to developing countries through synthesizing the main theoretical approaches. Numerous and important are barriers to implementation. They are dependent on several factors ranging from initial level of development of the receiving economy, the nature of the imported technology, the market structure, the state of competition. However, despite the size of these barriers to entry, it is obvious that the knowledge imparted should be properly absorbed by the receiving economy. This implies the ability of firms to learn and master imported technologies- which requires prerequisites in terms of human capital, basic skills, capital outlay required for the activity of RD as well as economic and social fundamentals of the host country for the proper handling of knowledge. This set of prerequisites identifies absorptive capacity which all developing countries wishing to optimize the transfer of technology should bring.