Technology Gap

Abstract

This chapter verifies that a technology gap between indigenous and foreign firms exists.¹ As stated in the previous chapters, if technologies diffuse from developed countries to developing ones through international economic activities, then globalization will make a positive impact on developing countries and their firms. On the other hand, if technologies do not diffuse, then globalization will make a negative impact on them. By showing the relationship between globalization and its negative impact, we conclude that technologies do not always diffuse in globalization and that there might be a technology gap between indigenous and foreign firms.