Role of MNCs in Transferring

Technology in Developing Countries

Group - C
Abul

Khair Sabbir (Id: 306)

Sarowar
Md.

Hossain (Id: 307)

Osman Gani (Id: 324)

Mame

Akhter Preyanka (Id: 325)

Technology
Transfer
MD. OSMAN GANI
ID: 324

What is it ?
Acquisition, development, and utilization
of technological knowledge by a country
other than that in which this knowledge
originated.

Technology Transfer
1. Material : Physical goods & Equipment's,
2. Design : Blueprints, Product related
information,

3. Capacity : Education and Training .

What to Transfer ?

Who do the Transfer ?

1. Universities &
educational
Institutions,
2. Government,
3. Multinational
companies.

Methods of Technology Transfer

Licensing
Support
Joint

Contract

Venture

EquipmentAcquisition
Management

Franchising

Foreign

Strategic

Direct

Turnkey

Alliance

Agreement

Contract

Company Acquisition

Foreign Investments

Buy-Back

Contract

OriginalEquipmentManufacturer

MNCs and Technology

Transfer
SAROWAR HOSSAIN
ID: 307

Role of MNCs in technology

transfer
1.

Internalized to affiliates under their ownership

and control and

2.

Externalized to other firms.

Why Do MNCs Transfer Technology to Less Developed Countries ?

(a) Advantages enjoyed by MNCs:

1.

Cost advantages

2.

Advantages of product differential

3.

Advantages of large scale operation

(b) Benefits to the Less Developed Countries

4.

Providing sophisticated technology and capital by MNCs.

5.

Provide training to the local manpower.

Mechanisms by which MNCs have an impact on the

educational system and human resources development of
host countries
1.

Changes in educational systems to attract MNCs

2.

Changes promoted by MNCs in the educational system

3.

Generation of knowledge spillover and spin-off effects

Related policy & technology

transfer
Policies

related to technology differ from

one organization to another based on type
of activities they do in their life cycle. But
these organizations must have policies on
some common fields like use of information,
information security.