ABSTRACT
In economics studies, technology has been known as a source of growth, development and wealth for rich nations. Technology is central to regional and economic change, job-creation and job-destruction. Since most innovations are developed by firms, the abilities to select, adapt, use and transfer technology necessarily have to be developed by the enterprise itself. S. Hollander emphasises that the cumulative effect of minor technical changes upon cost reduction are no less than the effect of major technical changes. It is important to note that tacit knowledge which is often skill- based and acquired on-the-job, makes a greater overall contribution to product development than does formal knowledge. The learning process can take different forms depending on various criteria. S. Lall and M. Bell propose taxonomies of learning that are particularly appropriate for developing countries. The taxonomy given by Lall can be mostly placed in context of the production and export of capital goods by developing countries.
