Technology Transfer: Desideratum for Emerging Economies

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“The number one benefit of… technology is that it empowers people to do what they want to do. It lets people be creative. It lets people be productive. It lets people learn things they didn't think they could learn before, and so in a sense it is all about potential”, as said by Ballmer S, CEO of Microsoft. Ballmer S clears defines the need for technology for developing an economy. Transfer of technology is a mutual agreement between a nation and a MNC who both compile their expertise for their growth. In this paper we would be discussing the need for developing nations to acquire expertise technology from MNC’s and the impact which they create in the development of the nation’s growth with an overall concentration to the BRIICS countries, who are currently on the pathway of robust development and acting as a platform for MNC’s to exploit the available resources.

The economic climate after the second world war has changed phenomenally, MNC’s today are looking for resources were in they could achieve economies of scale by exploiting resources, in return providing the host country with technology which leverages the production process by superiority in technology which they posses in order to maximize their profit. The mutual consent of both the parties here could be related to the game theory in which to sustain a share in market both parties mutually compromise. There are three broad categories of FDI transfer, namely 1) Direct transfer by the mode of licensing which is not preferred by the companies as most of the companies would not prefer in parting their technology work to others, 2) Import and export of intermediate goods and capital products as explained adversely by Tybout et al. (1997), 3) Indirect FDI transfer in the for...

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