A quantitative model for measuring technology transfer potentials at the industrial level - an application towards establishing technology cooperation

International transfer of technology is the key element for the industrialisation and economic development of countries. But the success of any transfer depends on the judicious selection of appropriate technology from the right source and its effective absorption. This depends to a large extent on the selection, adaptation and assimilation capabilities of the recipient of the technology. In technology transfer, adaptation at the transferee end is an important stage. The difference between the technology levels of the transferor and transferee causes a technological gap which creates a potential for technology flow, but the transfer will depend on the assimilating capability of the transferee. In this study, a mathematical function that determines the technological level of a country is developed using the logistic growth pattern. The technological level of a country, in a given industry, is measured by an indicator called 'Technology Index' using the variables that influence and reflect the performance of that industry. The technology index is computed using the factor loadings obtained by the statistical technique factor analysis. In technology transfer, one of the most important problems facing countries is the selection of a transferor. Using the classical optimisation method, optimum transferors for various hypothetical transferees are determined in order to study the optimal partnership in technology transfer. A theoretical framework is provided for technological cooperation among the member countries of APEC based on the technology transfer model and classical optimisation method developed in this study. The theoretical framework can be applied to establish, for each industry, a technology cooperation network among the member countries by identifying the optimum partnership, that will provide an effective technology transfer process. Finally, based on the outcome of the research undertaken, conclusions are drawn and recommendations for further study presente