CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Development has always been a top priority for third world nations, especially for those countries that gained their independence around the 1950s and that immediately found themselves far behind the industrialized world technologically. Although there were different opinions as to how large the technological gap between the third world and the developed countries was and whether it was growing or shrinking, there was general agreement that a serious technological gap existed (Perker, 1999).

The need for transfer of technology internationally for economic development of countries can hardly be over emphasized. Both the acquisition of technology and its diffusion foster productivity growth. As invention and creation processes remain overwhelmingly the province of the OECD countries, most developing countries must rely largely on imported technologies as sources of new productive knowledge. However, considerable amounts of follow-on innovation and adaptation occur in such countries. Indeed, these processes effectively drive technological change in developing nations. Developing countries have long sought to use both national policies and international agreements to stimulate international transfer of technology. National policies range from economy-wide programs (e.g., education) to funding for the creation and acquisition of technology, tax incentives for purchase of capital equipment and intellectual property rights. A prominent episode of international efforts to encourage international transfer of technology came in the late 1970s, when many developing countries sought a Code of Conduct to regulate technology transfer under United Nations (UN) auspices. It is difficult to regulate international transfer of technology effectively given the incentives for owners not to transfer technology without an adequate return and the problem of monitoring compliance with any rules that might be imposed. This helps explain why international transfer of technology is predominately mediated by national policies rather than by international disciplines. While some policies are subject to multilateral disciplines (e.g., subsidies, trade and IPR policies), the rules in place are primarily constraining in nature they define limits on what is allowed. Multilateral efforts to identify actions that governments should pursue to encourage international transfer of technology are largely of a best-endeavor nature. Starting in the mid1990s, multilateral disciplines on international transfer of technology-related policies began to deepen. The WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) calls on countries to enforce comprehensive minimum standards of IPR protection on a nondiscriminatory basis. It also has provisions relating to international transfer of technology.

1.2 STATEMENT OF THE RESEARCH PROBLEM

The poor development of the third world countries has seen most of these countries being at the lowest level of world economics. This has resulted to western countries granting aids to these third world countries to improve their economics. The lack of effective and efficient technology transfer from developed countries has been low in developing countries and this has partly resulted to the current economic problems these countries are facing. The lack of efficient technology transfer has been viewed differently by several school of thoughts, some school of thoughts are of the opinion that this is as a result of the deceit and lack of transparency by advanced countries in ensuring effective technology transfer while some others blame the poor working system of the country that has made in almost impossible to ensure receptivity.

1.3 OBJECTIVES OF THE STUDY

The major objective of the study is to examine the west and politics of technology transfer in the third world countries. Other specific objectives of the study include;

1. To determine the level of technology transfer evident in third world countries.

2. To assess the major international players in the west world as regards technology transfer.

3. To examine the importance of technology transfer in third world countries.

4. To examine the challenges of effective technology transfer in third world countries.

5. To access the role of technology transfer in socio-economic development of developing countries.

6. To recommend ways of ensuring effective technology transfer in third world countries

1.4 RESEARCH QUESTIONS

This research work intends to answer the following research questions:

1. Are there some challenges of effective technology transfer in third world countries?

2. Who are the major international players in the west world as regards technology transfer?

3. What are the levels of technology transfer evident in third world countries?

4. What are the importance of technology transfer in third world countries?

5. Are there roles played by technology transfer in the socio-economic development of developing countries?

6. Are there ways of ensuring effective technology transfer in third world countries?

1.5 SCOPE AND LIMITATION OF THE STUDY

The study is restricted to the west and politics of technology transfer in the third world countries. The researcher encounters some constrain which limited the scope of the study:

a) Availability of Research Material: The research material available to the researcher is insufficient, thereby limiting the study

b) Time: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

c) Organizational Privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.

1.6 SIGNIFICANCE OF THE STUDY

The study would be of immense importance to government at all levels and relevant stakeholders as it would examine the involvement of the western world and their politics to technology transfer in the third world countries, Nigeria inclusive. The study would also be of importance to students, researchers and scholars who are interested in developing further studies on this or related domain.

1.7 RESEARCH METHODOLOGY

The type of research methodology used in this research to gather data and relevant information is the historical research and the study will adopt descriptive method of data collection. This will involve the collection of materials from secondary sources, such as books, journal articles, magazines, published and unpublished articles.

1.8 DEFINITION OF TERMS

 Politics: Politics is the process of making decisions that apply to members of a group. It refers to achieving and exercising positions of governance organized control over a human community, particularly a state.

 Technology Transfer: Technology transfer, also called transfer of technology, is the process of transferring technology from the places and in groups of its origination to wider distribution among more people and places

 Third World Countries: The term Third World was originally coined in times of the Cold War to distinguish those nations that are neither aligned with the West (NATO) nor with the East, the Communist bloc. Today the term is often used to describe the developing countries of Africa, Asia, Latin America and Oceania.

TABLE OF CONTENT

PAGE

TITLE PAGE i

CERTIFICATION ii

DEDICATION iii

ACKNOWLEDGEMENTS iv

ABSTRACT v

RESUME vi

TABLE OF CONTENTS vii - ix

CHAPTER ONE: INTRODUCTION 1

1.1 Background of the study 1 - 3

1.2 Statement of the problem 4

1.3 Objectives of the study 4 - 5

1.4 Research questions 5 - 6

1.5 Scope and Limitation of the study 6

1.6 Significance of the study 6 - 7

1.7 Research methodology 7 - 9

1.8 Definition of terms 9 - 10

CHAPTER TWO: REVIEW OF RELATED LITERATURE 11

2.1 Concept of Technology Transfer 11 - 16

2.2 Theoretical Consideration 16 - 17

2.3 Forms in which Technology may be Transferred 17 - 18

2.4 Methods of Transferring Technology 18 - 23

CHAPTER THREE: THE EXPERIENCE OF THE UNDER-DEVELOPED COUNTRIES WITH TRANSFERS

OF TECHNOLOGY 24

3.1 The New International Economic Order 25 - 28

3.2 Technology Transfer and Socio-economic Development 28 - 45

CHAPTER FOUR: DIFFICULTIES THE UNDER-DEVELOPED COUNTRIES HAVE EXPERIENCED WITH INTERNATIONAL TRANSFERS OF TECHNOLOGY 45

4.1 Nigeria and the Dilemma of Technology Transfer 45 – 50

CHAPTER FIVE: SUMMARY AND RECOMMENDATION 51

5.1 Summary 51

5.2 Recommendation 60

Bibliography 61