ABSTRACT
This chapter examines the process of technology transfer by first highlighting the very different economic, technical and institutional conditions found in developing countries. A review of the economic theory of induced technical change is then undertaken for insights into effective strategies for technology transfer. Where new technology is adopted, some will gain and some will lose, at least relatively. The microeconomic theory reviewed and the experience suggests that further effort in the design phase of technology transfer is likely to be highly productive at this time in many developing nations. Government policies and financial support for success at the level of technology transfer needs to be long run and relatively stable. The chapter describes important implications about effective technology transfers which follow from the economic differences. The impacts of technology transfer need to be related to the longer-term dynamics of development.
