Fundamental Characteristics of Technology Transfer!
The whole increase of technology in underdeveloped countries originates from the advanced capitalist countries for apparent reasons, the highlight from the discussion. Multinational corporations play part in technology transfer, the motive being profit maximization for your parent company through their subsidiaries. These corporations become the primary instrument of technology transfer, most likely through their subsidiaries or through contractual contracts produced using developing countries. The idea is always to bring mechanized processes and equipments that are not in your town available.
We have got we’ve got the technology supplier often takes the surface of the hands due to his monopolistic strength which comes in the patents protection for differentiated products and operations. Often, the stipulations of transfer are arbitrarily settled under highly imperfect market conditions with the technology offering multinationals. Advanced nations have the advantages of reduced population density, even distribution of national wealth, top quality lifestyle, more infusion of capital into development and research, ease of access to skilled personnel inclined towards research etc. Under developed countries however are inclined to the pressures of high population density, uneven distribution of financial wealth (the indegent be poor as well as the wealthy much more potent),moderate or low living standards etc. Capital drain occurs due to heavy borrowings on the planet Bank which leads to increase in the social overheads. In cases like this, it’s tough for just about any developing nation to operate capital into activities concerning research.
The bargaining power under developed countries is weak, as other product utilization of information regarding alternate technologies in addition to their sources nor the needed infrastructure to evaluate the appropriateness of equipments, intermediates and operations. In addition, the large part of the increase of technology in developing countries is because of the insurance plan of industrialization through import substitution. Alternation in technology within the made to the underdeveloped countries is produced in lots of ways. They has taken care of into two broad groups, viz. , direct mechanism and indirect mechanism. The direct mechanism includes alternation in technology through banks, journals, industrial fairs, technical co-operation, movement of skilled people etc. Here likely to choice for that developing nation to select the right technology that many carefully fits their requirement. However, this is not the primary kind of technology transfer that advanced nations would really like.
The indirect mechanism implies technology transfer in the “package” or possibly a “bundle” which contains technology-embodying equipments, industrial characteristics like patents and trademark, skill, equity capital, etc. In this particular system, a close enterprise negotiates with multinational corporations for transport in the needed facets of technology, as well as the stipulations are settled using a technique of commercial transaction. Since the exchanging partners are unequal, the regards to contract are nearly always restrictive as well as the cost extended for your technology unreasonably high.
All the underdeveloped countries, which have selected growth over the classical route to capitalist development, can handle invite multinational corporations, if without other reason than no less than for your diffusion of technology.