Role of Technology Transfer, Innovation and Economic Growth

Role of Technology Transfer in Innovation and Economic Growth

Technology transfer plays a crucial role in fostering innovation across various sectors and contexts. It facilitates the exchange of knowledge, skills, and technologies between organizations, leading to improved innovation capabilities and economic growth. The process of technology transfer is particularly important for developing countries, as it enables them to access advanced technologies and accelerate their innovation cycles [1].

Research has shown that technology transfer can lead to several positive outcomes, including enhanced competitiveness, entry into new markets, and accelerated innovation cycles for companies [1]. In multinational firms, knowledge transfer and innovation have been linked to improved financial performance, innovation performance, knowledge flow, transfer effectiveness, patents, and new product development [2]. Additionally, technology transfer can contribute to sustainable development by promoting the adoption of green technologies in developing countries [3].

However, the effectiveness of technology transfer for innovation is influenced by various factors. Geopolitical risks can significantly hinder green technology spillovers through foreign direct investment and import channels [3]. To mitigate these challenges, advancements in local green technology levels, marketization, and intellectual property rights protection are crucial [3]. Furthermore, the relationship between government actions and innovation in environmental control technology highlights the importance of regulatory stringency in stimulating inventive activity and creating markets for environmental technologies [4].

In conclusion, technology transfer is a vital mechanism for promoting innovation and economic growth, particularly in developing countries. Its success depends on various factors, including political stability, robust internal mechanisms, and supportive government policies. To maximize the benefits of technology transfer, organizations and policymakers should focus on creating enabling environments, addressing barriers, and fostering collaboration between different stakeholders in the innovation ecosystem.

References

1. Xu J. The Role of Technology Transfer and Intellectual Property Protection in Investment in China and Southeast Asia. Journal of Innovation and Development. Darcy Roy Co; 2023;4:71–5.

2. Singh S, Dhir S. Knowledge transfer and innovation in multinationals: a review of the literature using SCM-TBFO framework. Benchmarking: An International Journal. Emerald Publishing; 2023;31:508–34.

3. Cheng P, Li K, Choi B, Guo X, Wang M. Impact of geopolitical risk on green international technology spillovers: FDI and import channels. Heliyon. Elsevier; 2024;10:e36972.

4. Taylor MR, Rubin ES, Hounshell DA. Effect of government actions on technological innovation for SO2 control. Environmental Science & Technology. American Chemical Society; 2003;37:4527–34.