“…The TT and KT literature have also acknowledge that a substantial transfer of technology regardless whether tacit or explicit technology will positively 1) lead to a higher potentials of innovation performance/capabilities (Guan et al, 2006;Kotabe et al, 2007)), 2) increase in technological capabilities (Kumar et al, 1999;Madanmohan et al, 2004), 3) enhance the competitive advantage (Liao and Hu, 2007;Rodriguez and Rodriguez, 2005), 4) enhance the organizational learning effectiveness (Inkpen, 2000;Inkpen and Dinur, 1998), 5) effect the productivity (Caves, 1974;Xu, 2000;Liu and Wang, 2003), 6) increase the technological development of local industry (Markusen and Venables, 1999), and 7) improve the economic growth of the host country (Blomstrom, 1990).…”