Innovation in technology transfer: host-oriented strategic R&D alliance

This paper examines a major technology transfer project in Iran that represents a departure from historical practice and may constitute a new model for technology transfer. The project involves an alliance between Iranian and German enterprises with the objective of developing and commercializing a CNG (Compressed Natural Gas) based engine for Iran. The aim of this paper is to demonstrate the central role of knowledge and competence creation through R&D alliance. It is argued that this model, which we call 'host-oriented' alliance, assuming highly competent management, provides an important technique for the technological catching-up process in which many developing countries are currently engaged