ABSTRACT
A recent World Bank report points out that for less developed countries (LDCs), export-oriented development based on technologies introduced by foreign transnational corporations (TNCs) has proven to be feasible as well as rewarding. For some countries with well-defined development strategies, these foreign companies function as educational systems providing a wide range of knowledge for domestic institutions. The publication states:
the successful countries have consistently taken an active approach to integration in the world economy by upgrading the learning capacity of firms, selectively financing R&D, encouraging the licensing of foreign technologies, and extending intellectual property rights and ICT [information and communication technology] infrastructure – in short, progressively deepening and tuning up their NIS [national innovation system] rather than passively waiting for MNCs [multi-national corporations] or imports to transfer technology. Thus engagement is a long process of undertaking the necessary institutional reforms needs to start early in the development process.1
