Technology Transfer and Knowledge Management in Developing Economies

Developing economies often lag behind in technological capabilities due to limited domestic research infrastructure, scarcity of skilled personnel and barriers to capital investment. Technology transfer and knowledge management together form a strategic response, enabling recipient firms and industries to absorb, adapt and commercialise imported technologies. Effective technology transfer encompasses not only the physical movement of equipment and licensing agreements but also the mobilisation of know-how through training, joint ventures and collaborative research. Knowledge management systems codify and disseminate both explicit and tacit knowledge, enhancing organisational learning and innovation. When embedded within supportive policy frameworks and regional innovation networks, these processes can raise productivity, foster indigenous R&D and promote inclusive economic growth. Practical examples include agricultural value-chain upgrades via precision-farming technologies, small-scale manufacturing clusters incorporating lean production methods and public health programmes deploying digital diagnostics.

Research from Nature Portfolio

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Research from all publishers

Recent studies have deepened understanding of the mechanisms and boundary conditions governing technology transfer and its impact on competitiveness. A study of small-scale agricultural businesses in Southern Africa demonstrated that improvements in product quality mediate the relationship between technology acquisition and market performance, with asset value and geographical location further moderating outcomes. Research in Ghana’s construction sector elaborated a configurational model showing that local and foreign-owned firms reach successful technology transfer through contrasting combinations of human resource development, knowledge-management practices and international networks, highlighting the central role of absorptive capacity. A foundational case study of an Indonesian manufacturing firm illustrated multiple transfer channels—technical licence assistance, turnkey projects, foreign direct investment and participation in overseas markets—and revealed that intermediate levels of indigenous capability arise unless complemented by strengthened in-house R&D and systematic knowledge-management systems.

Technology Transfer and Knowledge Management in Developing Economies publication trend

The graph below shows the total number of articles in technology transfer and knowledge management in developing economies across all publications each year (not limited to Nature Index journals).

Technical terms

Absorptive capacity: A firm’s ability to recognise, assimilate and apply external knowledge and technologies.

Explicit knowledge: Codified, documentable information such as technical manuals, blueprints and databases.

Tacit knowledge: Context-dependent know-how, skills and insights held by individuals, often transferred via apprenticeship and mentoring.

Technology transfer: The process of sharing or licensing technological innovations and accompanying know-how across organisational or national boundaries.

Knowledge management: Systematic processes for capturing, organising, storing and disseminating knowledge to optimise learning and innovation.

References

1. Enhancing competitiveness through technology transfer and product quality: the mediation and moderation effects of location and asset value. Journal of Innovation and Entrepreneurship (2023).
2. Technology Transfer Potential in Local and Foreign‐Owned Firms in Emerging Economies. British Journal of Management (2024).
3. Technology Transfers and Knowledge Management in Developing Economies:Case Study of an Indonesian Manufacturer. Journal of Entrepreneurship Management and Innovation (2013).