Why is technology transfer required by devoloping country?

Answer 1

"Technology transfer" refers to the practice of intentionally providing technology or "know-how" to another party. Many believe that technology underlies the economic advancement of countries. Because of this, when a company locates a production or other facility in a developing country, the host country may require the sharing of the associated technology with the workers and scientists of the host country who work in the facility. The host country requires this "technology transfer" with the expectation that this know-how will improve its technology knowledge base and spur economic development locally. A company (or a country for that matter) may balk at this requirement if it determines the technology transfer threatens its competitive advantage. A company may decide that the potential loss of competitive advantage is worth that risk, however, in order to locate a facility in a country that has desirable local resources, workers, or provides some other benefits for the company.

Answer 2

Technology transfer is important for developing countries because it allows them to access new knowledge, capacity building, and innovation that can help them advance their industries and enhance economic growth. By transferring technology from more developed nations, developing countries can accelerate their own technological capabilities and improve their competitiveness in the global market. Additionally, technology transfer can address local challenges, such as improving healthcare, agriculture, and environmental sustainability.