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

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Abstract

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.

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Kumar, V., Kumar, U. & Persaud, A. Building Technological Capability Through Importing Technology: The Case of Indonesian Manufacturing Industry. The Journal of Technology Transfer 24, 81–96 (1999). https://doi.org/10.1023/A:1007728921126

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