Managing Technological Transfer with Korea as a Catalyst

Abstract

Criticism of imported technology from industrial countries (Ics) has centered on the problem of absorption, since most developing countries (Dcs) are unprepared to accomodate the modern technology of Ics. The technology of Ics tends to be in physical-capital-abundant and human-capital-abundant design. Dcs need a different type of technology, because they tend to have abundant unskilled labor and little physical or human capital. The appropriate technology in such situation is labor intensive and small scale. Korea industrialized through labor intensive and small scale technology can play a role as a catalyst in international technological transfer series between Ics and Dcs. Thus the policies of Dcs must stress suitable technologies for their workers, if they are to escape the present crippling patterns of world trade.