Building Technological Capability Through Importing Technology: The Case of Indonesian Manufacturing Industry

This research investigates the critical elements affecting the ability of firms in developing countries to cultivate their technological capability through imported technology. The information obtained from forty-five technology recipient Indonesian manufacturing firms indicate that the cultivation of technological capability is affected by several factors such as a firm's technological absorption capacity in terms of R&D activities and availability of technical personnel; transfer channels; government's involvement; and a firm's learning culture. Also, the acquisition of mature technology just to boost production capacity or improve product quality contributes very little to the development of technological capability.

[1]  David J. Teece,et al.  The Market for Know-How and the Efficient International Transfer of Technology , 1981 .

[2]  H. Hill,et al.  Indonesia's Great Leap Forward? Technology Development and Policy Issues , 1995 .

[3]  Farok J. Contractor,et al.  International Technology Transfer: Major Issues and Policy Responses , 1981 .

[4]  Michael A. Cusumano,et al.  Linking international technology transfer with strategy and management: a literature commentary , 1994 .

[5]  Liu Wei,et al.  International technology transfer and development of technological capabilities: A theoretical framework , 1995 .

[6]  H. W. Wallender.  Technology transfer and management in the developing countries : company cases and policy analyses in Brazil, Kenya, Korea, Peru, and Tanzania , 1979 .

[7]  Ashok V. Desai,et al.  India's technological capability: An analysis of its achievements and limits , 1984 .

[8]  Hal Hill.  Indonesia's Industrial Transformation 1 Part I , 1990 .

[9]  J. Katz,et al.  Domestic technological innovations and dynamic comparative advantage: Further reflections on a comparative case-study program , 1984 .

[10]  Shidan Derakhshani,et al.  FACTORS AFFECTING SUCCESS IN INTERNATIONAL TRANSFERS OF TECHNOLOGY , 1984 .

[11]  Sanjaya Lall,et al.  Developing Countries as Exporters of Technology: A First Look at the Indian Experience , 1982 .

[12]  Zong-Tae Bae,et al.  Technology development processes: A model for a developing country with a global perspective , 1988 .

[13]  J. Dunning.  1 – Alternative Channels and Modes of International Resource Transmission , 1981 .

[14]  Christian N. Madu,et al.  Transferring technology to developing countries—Critical factors for success , 1989 .

[15]  E. Mansfield,et al.  Technology Transfer to Overseas Subsidiaries by U. S.-Based Firms , 1980 .

[16]  Liming Zhao,et al.  International technology transfer: A review , 1990 .

[17]  Cletus C. Coughlin.  The relationship between foreign ownership and technology transfer , 1983 .