ABSTRACT
This chapter suggests that an approach as to how to understand and formulate solutions to the linkage problem between the research and development (R and D) system and the production system. This approach looks at the problems not as an issue of linking two systems, but rather as improving the effectiveness of one process wherein the two systems form part of the overall process—the technology delivery process. The R and D system which has traditionally shied away from economic policy-making, must actively participate in this field, to provide the policy environment for technological assimilation. Technology needs of a developing country can be categorized as follows: indigenous technologies, technology transfer and importable modern technologies. The agenda of indigenous technologies to be developed should be governed by: the comparative advantage of the local industry absorbing the technology vis-a-vis international competition; and the resource endowments of the country.
