International Technology Transfer: Strategies for Success

High-technology industries have led the way in the globalization of international business in recent years. Success often depends on how well a firm transfers technology to another firm or market in a foreign country. International technology transfer usually faces greater problems than in a domestic situation due to differing cultures, norms, laws, tax policies, etc. What should management focus on, and what are some strategies to achieve technology transfer abroad? Many of the important factors are ambiguous by nature and difficult to measure. For instance, the technology to be transferred and the target markets may be changing, estimating costs and prices can be difficult, and the competition may consist of only a small number of firms or governments. Several critical factors may be external to the firms involved, such as political, cultural, and economic conditions. It is important, under these conditions, for management to have a good understanding of the international technology transfer process and the barriers and bonds that determine success