The Production and Transfer of Technology

Abstract

The effects of MNCs on the technology in host countries have been widely studied in recent years. It is often believed that MNCs tend to produce and transfer more technologies than local firms, and in consequence play a more important role in the process of technological change. At the same time, it is also argued that MNCs tend to produce and transfer inappropriate technologies to the host developing countries. This and the following two chapters will look into these issues of the production, transfer, diffusion, and choice of technology.