This report prepared for UNIDO summarises current discussions about the processes of technology transfer and their impact on technological capabilities in developing countries. The paper outlines the process of developing capability based on technology transfer in East Asian countries, identifies the problems that have limited technology transfer and technological learning in other 'latecomer' industrialising countries, and outlines the possible role of UNIDO and other international organisations in addressing these problems.

The report concludes by suggesting a framework for action for UNIDO in supporting technology transfer and technological capability building in developing countries. According to the author, these initiatives should both support the process of technology transfer and technological capability development at the national level and develop international policy initiatives to deal with trade and environment issues that have adverse effects on technology transfer in developing countries.


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