The Impact of International Technology Transfer on Technology Gap in the Context of Developing Countries

Authors

  • Raymond Ebu Mofam Department of Management, Faculty of Business Administration, University of Nigeria, Enugu Campus, Enugu State, Nigeria
  • Akeem Tunde Nafiu Department of Management, Faculty of Business Administration, University of Nigeria, Enugu Campus, Enugu State, Nigeria https://orcid.org/0000-0002-1705-6890
  • Peter Asuquo Department of Management, Faculty of Business Administration, University of Nigeria, Enugu Campus, Enugu State, Nigeria
  • Anthony Igwe Department of Management, Faculty of Business Administration, University of Nigeria, Enugu Campus, Enugu State, Nigeria

DOI:

https://doi.org/10.22159/ijoe.2023v11i4.48093

Keywords:

globalization, technology gap, technology transfar, technological advancements, technological capabilities

Abstract

The study aimed at the effect of International Technology Transfer (ITT) on the technology gap in developing countries. The study investigated the effects of ITT on the policies and strategies that can be implemented to improve ITT in developing countries. The study was anchored on dependency theory. The study employed a qualitative method. The study’s narrative review was chosen as it is an evidence-based review that concentrates on previous literature. The study used a search strategy. Previous empirical studies were screened using Prisma Flow-diagram. It was found that the effects of ITTs on the technology gap in developing countries remain a subject of debate and investigation in academic research and that empirical evidence from different studies has shown mixed findings. The study concluded that ITT could positively and negatively affect the technology gap in developing countries. The study recommended that developing countries prioritize investment in education and human capital development to build a skilled workforce capable of utilizing and adapting to new technologies. In addition, they should encourage local innovation and development of indigenous technology to reduce dependency on foreign technology and promote sustainable development.

Downloads

Download data is not yet available.

References

Agbebi, M., & Virtanen, P. (2017). Dependency theory – A conceptual lens to understand China’s presence in Africa? Forum for Development Studies, 44(3), 429–451. https://doi.org/10.1080/08039410.2017.1281161

Aghion, P., Blundell, R., Griffith, R., Howitt, P., & Prantl, S. (2009). The effects of entry on incumbent innovation and productivity. Review of Economics and Statistics, 91(1), 20–32. https://doi.org/10.1162/rest.91.1.20.

Akpan, I. J., Udoh, E. A. P., & Adebisi, B. (2022). Small business awareness and adoption of state-of-the-art technologies in emerging and developing markets, and lessons from the COVID-19 pandemic. Journal of Small Business and Entrepreneurship, 34(2), 123–140. https://doi.org/10.1080/08276331.2020.1820185

Ayukekbong, J. A., Ntemgwa, M., & Atabe, A. N. (2017). The threat of antimicrobial resistance in developing countries: Causes and control strategies. Antimicrobial Resistance and Infection Control, 6, 47. https://doi.org/10.1186/s13756-017-0208-x

Branstetter, L., & Maskus, K. E. (2022). Global knowledge flows, absorptive capacity, and capability acquisition: Old ideas, recent evidence, and new approaches. In A. Taubman & J. Watal (Eds.), Trade in knowledge. Cambridge University Press.

Bu, M., Li, S., & Jiang, L. (2019). Foreign direct investment and energy intensity in China: Firm-level evidence. Energy Economics, 80, 366–376. https://doi.org/10.1016/j.eneco.2019.01.003

Buckley, P. J., & Hashai, N. (2020). Skepticism toward globalization, technological knowledge flows, and the emergence of a new global system. Global Strategy Journal, 10(1), 94–122. https://doi.org/10.1002/gsj.1372

Chakrabarti, A. (2001). The role of intellectual property rights in technology transfer and economic growth: Theory and evidence. Journal of International Trade and Economic Development, 10(3), 367–386.

Cunningham, J. A., Lehmann, E. E., Menter, M., & Seitz, N. (2019). The impact of university focused technology transfer policies on regional innovation and entrepreneurship. Journal of Technology Transfer, 44(5), 1451–1475. https://doi.org/10.1007/s10961-019-09733-0

Demena, B. A., & van Bergeijk, P. A. G. (2017). A meta-analysis of Fdi and productivity spillovers in developing countries. Journal of Economic Surveys, 31(2), 546–571. https://doi.org/10.1111/joes.12146

Garengo, P. (2018). How bridging organizations manage technology transfer in SMEs: An empirical investigation. Technology Analysis and Strategic Management, 31(4), 477–491. https://doi.org/10.1080/09537325.2018.1520976

Gheribi, E., & Voytovych, N. (2018). Prospects of foreign direct investments in technology transfer. Economic and Environmental Studies, 18(46), 551–576. https://doi.org/10.25167/ees.2018.46.5

Halili, Z. (2020). Identifying and ranking appropriate strategies for effective technology transfer in the automotive industry: Evidence from Iran. Technology in Society, 62, 101264. https://doi.org/10.1016/j.techsoc.2020.101264

Hong, J., Zhou, C., Wu, Y., Wang, R., & Marinova, D. (2019). Technology gap, reverse technology spillover and domestic innovation performance in outward foreign direct investment: Evidence from China. China and World Economy, 27(2), 1–23. https://doi.org/10.1111/cwe.12272

Hopper, T., Lassou, P., & Soobaroyen, T. (2017). Globalization, accounting and developing countries. Critical Perspectives on Accounting, 43, 125–148. https://doi.org/10.1016/j.cpa.2016.06.003

Kim, Y., & Lee, Y. S. (2017). The impact of ITT on technology gap: An empirical study of developing countries. Asian Journal of Technology Innovation, 25(2), 243–257.

Konstandina, M. S., & Gachino, G. G. (2020). International technology transfer: Evidence on foreign direct investment in Albania. Journal of Economic Studies, 47(2), 286–306. https://doi.org/10.1108/JES-02-2018-0076

Lee, Y. S., & Kim, Y. (2010). Effects of technology transfer on innovation in Korean firms. Asian Journal of Technology Innovation, 18(2), 99–117.

Lema, R., Rabellotti, R., & Gehl Sampath, P. (2018). Innovation trajectories in developing countries: Co-evolution of global value chains and innovation systems. European Journal of Development Research, 30(3), 345–363. https://doi.org/10.1057/s41287-018-0149-0

Narula, R., & Marin, A. (2003). FDI spillovers, absorptive capacities and human capital development: Evidence from Argentina. Journal of International Business Studies, 34(3), 244–262.

Noh, H., & Lee, S. (2019). Where technology transfer research originated and where it is going: A quantitative analysis of literature published between 1980 and 2015. Journal of Technology Transfer, 44(3), 700–740. https://doi.org/10.1007/s10961-017-9634-4

Osano, H. M., & Koine, P. W. (2016). Role of foreign direct investment on technology transfer and economic growth in Kenya: A case of the energy sector. Journal of Innovation and Entrepreneurship, 5(1). https://doi.org/10.1186/s13731-016-0059-3

Piermartini, R., & Rubínová, S. (2022). Knowledge spillovers through international supply chains. In A. Taubman & J. Watal (Eds.), Trade in knowledge. Cambridge University Press.

Ponte, S., Gereffi, G., & Raj-Reichert, G. (2019). Introduction to the handbook on global value chains. Handbook on global value chains, 1–27. https://doi.org/10.4337/9781788113779.00005

Prasanna, R., Jayasundara, J., Naradda Gamage, S. K., Ekanayake, E., Rajapakshe, P., & Abeyrathne, G. (2019). Sustainability of SMEs in the competition: A systemic review on technological challenges and SME performance. Journal of Open Innovation: Technology, Market, and Complexity, 5(4), 1–18. https://doi.org/10.3390/joitmc5040100

Pratono, A. H. (2019). Cross-cultural collaboration for inclusive global value chain: A case study of rattan industry. International Journal of Emerging Markets, 15(1), 149–170. https://doi.org/10.1108/IJOEM-01-2017-0028

Prud’homme, D., von Zedtwitz, M., Thraen, J. J., & Bader, M. (2018). Forced technology transfer policies: Workings in China and strategic implications. Technological Forecasting and Social Change, 134, 150–168. https://doi.org/10.1016/j.techfore.2018.05.022

Qalati, S. A., Yuan, L. W., Khan, M. A. S., & Anwar, F. (2021). A mediated model on the adoption of social media and SMEs’ performance in developing countries. Technology in Society, 64, 1–12. https://doi.org/10.1016/j.techsoc.2020.101513

Shareiam, B. F. (2015). Theories of development. International Journal of Language and Linguistics, 2(1), 78–90.

Strange, R. (2020). The 2020 Covid-19 pandemic and global value chains. Journal of Industrial and Business Economics, 47(3), 455–465. https://doi.org/10.1007/s40812-020-00162-x

Tang, C., Tang, Y., & Su, S. (2019). R&D internationalization, product diversification and international performance for emerging market enterprises: An empirical study on Chinese enterprises. European Management Journal, 37(4), 529–539. https://doi.org/10.1016/j.emj.2018.11.003

Tülüce, N. S., & Doğan, İ. (2014). The impact of foreign direct investments on SMEs’ development. Procedia – Social and Behavioral Sciences, 150, 107–115. https://doi.org/10.1016/j.sbspro.2014.09.012

Wang, C. C., & Wu, A. (2016). Geographical FDI knowledge spillover and innovation of indigenous firms in China. International Business Review, 25(4), 895–906. https://doi.org/10.1016/j.ibusrev.2015.12.004

Weko, S., & Goldthau, A. (2022). Bridging the low-carbon technology gap? Assessing energy initiatives for the Global South. Energy Policy, 169, 1–10. https://doi.org/10.1016/j.enpol.2022.113192

Wie, T. K. (2005). The major channels of ITT to Indonesia: An assessment. In International Journal of Emerging Markets A. H. Pratono (Ed.). Cross-cultural collaboration for inclusive global value chain: a case study of rattan industry. https://doi.org/10.1108/ijoem-01-2017-0028

Wong, P. K., & Chan, K. W. (2018). The impact of ITT on technology catch-up in developing countries: Evidence from China. World Development, 106, 136–148.

Zanello, G., Fu, X., Mohnen, P., & Ventresca, M. (2015). The creation and diffusion of innovation in developing countries: A systematic literature review. Journal of Economic Surveys, 30(5), 884–912. https://doi.org/10.1111/joes.12126

Published

01-07-2023

How to Cite

Mofam, R. E., Nafiu, A. T., Asuquo, P., & Igwe, A. (2023). The Impact of International Technology Transfer on Technology Gap in the Context of Developing Countries. Innovare Journal of Education, 11(4), 30–36. https://doi.org/10.22159/ijoe.2023v11i4.48093

Issue

Section

Research Article(s)