Technology is also relevant to the approach to the new issues of competition and investment. A recurring issue is the control of anti-competitive practices by technology right holders or the resort to practices that unduly impede the transfer and dissemination of technology. As regards investment, it has been observed that transfer of technology is often most successful when accomplished by means of investment, especially foreign direct investment. However, even in these successful cases, active and dynamic national policies have proved important for making the interaction between technology transfer and FDI a virtuous relationship.
Perhaps the most important insight in the evolution of technology thought is the recognition that technology transfer is primarily a means to accomplish the more fundamental goal of building technological capacities. Technology transfer is a process, not a one-off transaction. Transfer of technology involves the successful learning of information by one party from another party, and the effective application of that information in generating marketable products and services.
It is also recognised that a key component of any transfer process is the effective transfer of the skills and intangible know-how that ensure production capability. Such transfers are costly and require investment by both parties in a process with uncertain outcomes. As a dynamic and evolving process, it requires constant adaptation by all actors. Enterprises – large and small – are key actors. Their actions can be encouraged and promoted by other actors, including host and home countries, as well as international capacity building programmes, to build a sound technological base, particularly in least developed countries.
