Review and Framework

Abstract

Numerous studies on the influence of globalization on developing countries and their firms have already been con­ducted in international economics and related research fields, and, as we will see in this chapter, a variety of viewpoints have been expressed on this influence. There, however, still remain questions to be answered. One of these questions concerns the growth of indigenous firms in developing countries when there is incomplete technology diffusion.¹ Although technol­ogy diffusion from developed countries and their firms to developing countries and their firms has been the focus of several studies, to the best of the author’s knowledge partial diffusion of technology has not been investigated explicitly. This study conducts an in-depth analysis of incomplete tech­nology diffusion because it is more commonly experienced in reality.