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What are the different modes of Technology Transfer?
Different modes of technology transfer are foreign direct investment, sharing technologies, licensing technology, turnkey projects and strategic alliances. We shall discuss four channels – FDI, Licensing, Joint Ventures and strategic alliances, and international trade. 1. Foreign Direct Investment (FDI):
When does technology transfer occur in a market?
The technology transfer usually occurs in a market which is imperfectly competitive and possesses no particular market structure.
Which is the best way to transfer technology?
Foreign Direct Investment (FDI): FDI is the most preferred route to transfer newer technology. Foreign firms are instrumental in closing the intellectual (idea, skills) and physical capital gaps. FDI helps in overcoming the productivity gaps between the foreign and domestic firms.
How is technology transfer beneficial to developing countries?
The transfer of Panasonic’s microwave manufacturing base from United States to China has led to the presence of 2800 Chinese enterprises to provide components for it, which has not only contributed new technology, but also advanced operations management techniques to Chinese market (Sinani and Meyer 2004).
Last Update: Oct 2021
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