High Technology Industrialization and Internationalization: Exploring International Technology Transfer

1.1 Backgrounds of Research

International technology transfer is a direct approach to improve national technology level and strengthen national competence. Introducing advanced technologies from foreign countries can boost the speed of technology development in the host country. Through technology import, host countries can often shorten the learning time, enjoy the latecomer advantage, and achieve technology leapfrogging. However, international technology transfer is not an easy process. Barriers existed because of huge gaps among countries in terms of social values, economic development, and technology level. There are more complicated issues if technology exporters belong to the developed world, while the technology importers come from developing world. Technology policies vary significantly due to the difference of conditions between developed and developing countries.

Since most technology exporters are companies from developed countries and most technology importers are from developing countries, this chapter will focus on technological transactions between developed and developing countries. Also due to the large policy differences between the two sides, typical countries will be selected for detailed discussions. As the largest developed country, United States is also the largest technology exporter in the world. This is because its unparallel global technological leadership built from the last century. Policy measures in United States can typically represent the interests of many other developed countries such as Europe Union, Japan, etc. From the perspective of developing countries, China and India have the largest market potential in the world. China is also the largest technology importer globally. It generates many business opportunities and attracts a lot of investments from developed countries. Therefore, technology policy of these countries will be discussed in this chapter.