ABSTRACT
This study illustrates through case studies the four stages by which Taiwanese firms conduct co-operative activities. The first stage involves absorbing inward basic technological know-how; the second stage the accumulation and assimilation of technology; the third stage, the enhancement of comparative advantages by outward transfer of mature technology to Less Developed Countries (LDCs), and/or establishment of overseas subsidiaries and/or joint ventures in LDCs; and at the fourth stage the acquisition of advanced technology by the purchase of foreign firms, and/or by formation of joint ventures with Multinational Corporations (MNCs) in Industrialized Countries (ICs) or in the domestic market. Success in each of the four stages is very much dependent on the attributes of, inter alia, technology, recipient firms and industry.
