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.

dx.doi.org/10.1023/A:1007728921126
Journal of Technology Transfer
Sprott School of Business

Kumar, V, Kumar, U, & Persaud, A. (Aditha). (1999). Building technological capability through importing technology: The case of Indonesian manufacturing industry. Journal of Technology Transfer (Vol. 24, pp. 81–96). doi:10.1023/A:1007728921126