ABSTRACT
This chapter examines experience of Hindustan Machine Tools (HMT) under various stages of development, interaction processes between licensor and licensee in the process of technology absorption and strategies adopted to enable the absorption of technology such as “learning by doing”. The absorption of technology requires a conscious policy of learning by doing, i.e. to seize every opportunity to solve problems associated with inter alia, the choice of technique, technology supplies, machinery and machinery supplies, and the very products to produce. HMT has had to operate in an environment quite different from that of private industry. HMT by its initial association with the Swiss emphasized training of skills and subsequently adopted a policy of “learning by doing”. The actual decision to enter into a joint venture with the Swiss to establish a machine tool industry in India was taken by the government.
