Inflows of Foreign Technology and Indigenous Technological Development

Abstract

This paper explores the effects of inflows of foreign technology on technological development in developing countries. It evaluates the existing literature exploring this issue and indicates directions for further research. In particular, it is argued that the implications of the theory of foreign direct investment (the dominant channel of international technology transfer) for technological development have not been fully explored. Dynamic analyses of technology transfer that accommodate the salient features of developing countries have also begun to appear only recently. Further work along these lines is likely to yield rich dividends.

Endogenous Growth when Unskilled Labour is Abundant

“…But, from equation (15), this requires in a 19 Low stocks of human capital may result in slow growth for other reasons, however. In particular recent growth models emphasise the importance of human capital in promoting technology diffusion, Lewis (1955), Nelson and Phelps (1966), Benhabib and Spiegel (1994), Coe and Helpman (1995), Edwards (1992) and Pack and Saggi (1997). The results obtained here, however, are in the context of a closed economy.…”

Dynamic analysis of innovation and international transfer of technology through licensing

“…In the case that a Southern follower firm offers a Northern patent holder a license contract, we 18 The similarity between licensing and imitation in our model was pointed out by an anonymous referee.…”

“…As the fixed point of the system is located on theV L,t = 0-locus,V L is related ton S by equation (18). Therefore, the long-run response of V L,t to a change in κ is given by:…”

“…18 We can obtain a model where the channel of technology transfer is imitation by making a few changes in the present licensing model.…”

Fostering Innovation in Russian Companies in the Post-Crisis Period: Opportunities and Constraints

“…The paper [Shane, 2009] shows that the policy of picking winners minimally distorts the market stimuli for the enterprises. The paper [Antonelli, Crespi, 2011] It is recognized that combination of technology import and domestic research and development is a key to successful innovation policy for a country, lagging in development of the research base (see, eg, [Pack, Saggi, 1997]). Without proper R&D the absorption of complex new manufacturing technologies by companies is problematic, as reflected in the fundamental concept of "absorptive capacity" [Cohen, Levinthal, 1990].…”