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Modes of Technology Transfer at the Firm Level

This paper prepared for the World Bank addresses different modes of technology transfer for individual firms in developing countries, the determinants of the demand for and productivity of technology transfers and reviews the evidence from case studies of technology transfers and technological learning in developing countries.

The paper notes that firms in developing countries can access new technology through various channels such as imports of new equipment, licensing agreements, consultancy, flows of people, and so on. The author emphasises two factors that influence the demand for technology transfers and the potential of transferred technologies to increase productivity. The first of these factors is the policy environment in which firms operate and the second is firms' efforts and capacities to seek, absorb and assimilate new technologies.