the transfer of technology to developing countries: a critical analysis regarding venezuela

THE TRANSFER OF TECHNOLOGY TO DEVELOPING COUNTRIES: A CRITICAL ANALYSIS REGARDING VENEZUELA*

j- Manuel Suarez

The process of technology transfer implies the existence of the need for technology by a party that lacks it and, for some reason, wants i t . 12:" 1 3 In this article, two specific categories of technology transfer are discussed. One type of transfer con- cerns technology that has been developed in the field to solve a particular problem or a group of problems and could also have application in other fields- As an example, management techniques developed by the Air Force could be applicable for solving similar problems in other government agencies or in the private sector. Such a transfer recently took place between the Venezuelan Air Force and the University of the Andes- The second type of transfer is the extension of technology already well developed to new users who had previously been un- aware of it. Between developed and developing countries, this is a common situation.

The first type of transfer involves a new technology or application of existing technology or application of existing technology to bring about change. The second type introduces a revived technological development to societies who have fallen behind in their research and development programs- In this article, emphasis is placed on the second type of technology transfer particularly as it applies to Venezuela, a country in search of the technology that is

~f LCDR Manuel Suarez, Venezuelan Navy, received an MoS. Degree in Management at the Naval Postgraduate School in Monterey, CA in June 1977. *Translation from Spanish to the English version is by J.W. Creighton, Professor of Management at NPS, Monterey, CA 93940 Journal of Technology Transfer, 3(1), 1978

necessary for its industrial development. Recently, talk has arisen of "appro-

priate technology." This term is defined as technology appropriate for the conditions of the user. It would include the adaption of foreign technology to the particular conditions of the user domestic market, and might require the development of intermediaries in government organizations or in industry. These intermediaries would act as linkers between the sources of technology and the consumers of it. This paper presents a summary of the process of technology transfer from industrial countires to the developing ones.

Technology transfer as a specialty area has gained momentum with time. For instance, symposia are conducted in the United States with participants from government agencies, industries, and universities who are interested in sharing their own technical accomplishments and]or acquiring those of others. Symposia also

'provide excellent opportunities for interested organizations to assimilate technological developments in areas that have been fully studied by others in varied fields of research endeavor. An analysis of one transfer process in existence follows:

Step 1 : The direct investment by a foreign company through its subsidiaries in factories and equipment to be installed in the developing countries.

Step 2 : Operation of the company by a mixture of foreign and local people. :

Step 3 : Technical reports and licenses made available to the people in the developing country.

Step 4 : Provision for education of those people who are to use and further develop the technology.

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The cited example shows a common so. quence of the technology transfer process.

Although there are many other mechanisms that exist in the transfer process, they will be discussed later in the paper as will the subject of barriers to the movement of technology. The attraction of specific materials and the importance placed by the author on particular aspects of the technology transfer process will be given priority and emphasis over others. Eastly, conclusions will be directed to a proposed method for a more effective transfer of technology to the developing country of Venzuela.

THE IMPLEMENTATION OF TRANSFER PROCESSES

There are both favorable and adverse conditions for transfer of technology to a receiving country. Favorable conditions might include the availability of scientists and technical know-how within a developing country. Pblitical independence would also be important here. Unfavorable conditions could include economic factors~ organization, cultures, social customs, or geo~ graphic factors which one way or another form a barrier to the advancement of techo nology. Fur example, barriers may include: a lack of financial resources for financing investments, a high rate of unemployment, poor demand for a product of the new technology, excessive governmental control, an unqualified labor force, and resistance to the technology by the public. :

If industrialization is a means to better conditions of life and economic independence in the less developed countries, then, an objective evaluation should be made of the actual internal resources in order to use them most effectively. By means of official regulations and negotiations between foreign and domestic f'mns, the domestic resources can be used with benefits accruing to both parties. Fbr the developing nation, 22

these benefits are from advantages gained by the foreign firms competence in trading, production, distribution, and financial and managerial techniques. For the foreign f'Lrm~ the mixed investment provides an exo panded market for its products and a chance for satisfactory return on its investment. :

The degree of transfer of technology to the local economy depends upon the scope of the local law and extent of negotiations. The establish~nent of laboratories for local research, local development of new prod= ucts, development of quality control skills and training aids by the foreign firm will increase the transfer rate. Time required for the implementation of already existing knowledge provides a grace period for in= creasing productive capacity. An examina- tion of material and human resources should constitute the first action to establish the boundaries for the preferred di= rection of development. Ifi this way, planners are able to assure that there is a way to acquire the necessary capacities for the transfer of technology. This type of technological transfer is generally successful An example of the implementation pro~ cess follows:

An administrator can examine and study the proposed organization prior tcr the actual implementation. The follow-

.ing questions should be considered: Is there an administrative group with sufo

�9 ficient knowledge, depth, objectivity~ flexibility, and aggressiveness to exploit the technology which has been received? Are effective plans available to establish policies, procedures, and programs? Has �9 a system been provided to develop the administrative capacity at lower levels in the organization? In the labor sector, are workers with technical capability available?

The labor resource must receive major attention from plannerso Some countries .have oriented their development around

labor-intensive industry; others toward caw ital-intensive industry. And, others have compromised between the two. Whatever the orientation, countries search for a to. duction of unemployment. ~dministrative failure to create an adequate level of employment is a most tragic fault in industri~ al development.

Venzuela recently adopted an extreme method in order to avoid damaging certain segments of the economy. Qfualified workers were imported from Spain, Portugal~ and Italy. These countries are a traditional source of immigrants for Venzuela as part of a. government program to increase the level of industrial labor. This appeared, at first glance, to be a quick solution for the critical problem. However, it resulted in continued unemployment of less qualified native Venzuelians until other projects could absorb them.

MECHANISMS FOR TRANSFER

Four mechanisms for transfer are considered here. These are: direct investment~ mixed investments, technical agreements, and education.

Direct Investment

The best known examples of rapid transfer of technology are from the activities of subsidiary companies which are established in less developed countries by foreign firms

13 from industrial nationso It has even been possible for backward countries to establish a modern industry which evolved into a very efficient operation~ Once the industry is established, the most effective way of transfer, person-to-person contact, can effectively take place~ Additionally, there is the motivation for a foreign firm to gain by the sale of its products in the domestic and international marketso Dunning men~

Journal of Technology Transfer, 3(1), 1978

tions that among the primary characteristics of direct investment are the dissemination of valuable knowledge, production techniques, marketing methodology, and industrial administration capability. 1, 4. Other advantageous characteristics are:

1. The flow of capital between countries.

2. Annexation of a company experi- enced in foreign trade to the national industrial environment.

3. The wisdom of experience received from the investing company and applied to operational decisions of the subsidiary company.

Direct investment in subsidiary companies by multi-national corporations carries drawbacks as well as benefits. It:can create a monopolistic situation with the conse- quential elimination of small local busines- ses. There is also the danger of external influence on the internal affairs of a country~

Among the most common complaints of developing countries are those of over-cono trol of capital by the investing company and foreign ownership of this capital. Ci'it- ics observe that ownership of capital by foreign interests can affect the distribution o f profits to favor the foreign interests. Other unfavorable side-effects of foreign invested capital include an imbalanced economic position for the country and the questionable employment status in the local labor marketo

To overcome these disadvantages, govo ernments of developing countries can ir~ pose regulations limiting economic areas Which are sensitive to influence and domin- ation by foreign firms. Those areas in which imported technology is urgently needed can be left open for foreign investment. This can result in negotiated control~

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led advantages for the developing countries. One should remember that sometimes an excessively bureaucratic state can retard the implementation of new technology. This is the case when the formalities required to implement a new idea or an investment require the concurrence of many government officials, each having the power to veto the proposal. It ~is imperative that consideration of needed realities take precedence, and that import licenses for industrial equipment and primary materials necessary for projects already initiated or proposed be accelerated, and that licenses for joint operations between national and industrial firms be granted.

Mixed investment and technical agreements 1, 5a r e alternatives to direct investment which permit developing countries to benefit from imported technology. The principal characteristic of these mechanisms is the absence of foreign capital in great concentration within national firms. In reality, the foreign investment still exists but without the external control influencing the operation of the firm.

Mixed Investments

The expression "mixed investment '~ implies a sharing of financial responsibility between foreign and local firms. By means of official regulations and negotiations between foreign and domestic firms, the domestic resources can be used with benefits accruing to both parties. Benefits for the developing nation from a foreign firm are the transfer of expertise and competence in trading, production, distribution, and financial and managerial techniques. For the foreign firm, the mixed in. vestment provides an expanded market for its products and a satisfactory return on investments.

The degree of technology transfer to the local economy depends upon the scope of 24

local law and the extent of negotiations with the participating foreign firm. The rate of technology transfer will increase proportionately with the establishment of laboratories for research, development of new products, quality control skills, and training aids advanced by the foreign firm in the local area.

Technical Agreements

Another form of technology transfer that is becoming increasingly acceptable for developing countries is the technical agreement. A contract is negotiated between the developing country and a foreign firm for the purchase of technology and operational knowledge in exchange for privileges and rights. Frequently, the agreement is part of a mixed investment which might include several technical agreements in the final contract. Cited as a case in point, would be a foreign

:investment to a developing country ac- companied by a contract licensing manu- facture of a product, use of patent rights,

:or possibly the transfer of trade marks on current or future designs. However, the technical agreement is commonly viewed as a means for acquiring a specific element quickly to gain economic monopolistic advantages.

There may be times when the technical agreement is used to provide a base for a technological multiplier effect. Then, one should view the agreement as the start of a continuing progressive adaptation by the industrial concern of its processes and organization. In this concept, the developing country can continue to benefit from the transfer. Technical assistance of this type is financed principally by the government of the receiving country. Occasional- ly, financing is from international organizations- An example is the assistance to the Center for Agricultural Research of Vene- zuela from Israeli scientists who trained

engineers, economists, and technicians in- volved in research activities. Another illus. tration of financial sponsorship from inter. national organizations occurred early in 1976. On that occasion, the President of Venezuela gave credit to foreign interests for contributions to Venezuela following the nationalization of the oil industry. He specifically mentioned their financial as. sistance, engineering, consulting, training, and many other benefits provided by for- eigu interests. 4:

For many countries, licensing rights provide a way for lessening or eliminating the costs for local research and development. For others, they provide a complement to local research and development effort rather than a substitute. The costs of re- inventing technology which has been developed and implemented in other countries can be prohibitive. Even though the royalties paid for rights and licenses are excessive, sometimes it is worth paying the price. Often, prices paid for licenses are unrea- sonable because the negotiator is weak or the knowledge of technical standards are low in the domestic industry. It may be seen, then, that the agreements for licensing are essentially contracts which require careful and precise consideration. This is especially true in the definition of the rights and obligations of the parties in- volved. The principal obligations of the grantor are:

�9 Granting of licenses, trade-marks, and know-how.

�9 Delivery of information, technical assistance, parts or components, and many other kinds of services.

The receiver also has two obligations --

�9 To exploit the granted rights in agreement with contract terms.

�9 Pay royalties and other compensa- tions in accordance with the contract.

Education

The role of education in the technology transfer process is to provide a base of knowledge required for assimilation and

utilization of scientific techniques. In a study of requirements for an educational system, a comparative analysis of skills needed by industry would be useful An analysis of this type might provide a classio

:fication such as is shown in Figure 1. The National Institute for Education Coopera- tion (INCE) has been in existence in Vene- zuela for several years. I[ was founded by the government to train technicians at the level of operator helpers. Actually, it em- braces programs for training in industrial, rural, commercial, and business administra-

:tion. It is common for an operator to advance in the organization until he becomes a foreman or superintendent. :

It is at the secondary education level that technical education is emphasized with both practical and theoretical expo- sure. ?/serious vacuum in Venezuela exists at the technician's level. There are more engineering schools in Venezuelan Univer- sities than there are trade schools for training technicians. Perhaps this imbalance is the result of the emphasis on university degrees. Iri this respect, a change by society to emphasize and stimulate an increase in the number of technicians may be more difficult to accomplish than the acquisition of technology. It: presents a major barrier to implementation of the transfer process. The appreciation of a technical career depends upon the stimulus it receives from

:the government, private enterprise, and society itself. In the more industrialized countries, pride in one's work area is equal- ly as high as pride for scholarly connections.

Journal of Technology Transfer, 3(1), 1978 25

PERSONNEL TYPE

Operators

Supervisors

Laboratory Technicians Designers Production Planners

Supervisors Managers Directors

EDUCATION OR TRAINING CONCENTRATION

i

Use, control, operation of the factory and equipment

Practical knowledge, supervisory capabilities for use, control, and mainten- ance of the factory and equipment

Adaptation of foreign technology to local requirements

Market opportunity evaluation, nego- tiation for transfer, innovation plans and procedures, delegation of implementation duties

Figure 1 Breakdown of Capabilities Required of Different Industrial Personnel for Successful Transfer of Foreign Technology Into Local Use.

Different levels of education and training are required for different work capabilities. For instance, the operator of a manually controlled machine requires different prepa- ration than one for an automatic machine.

The work of managers and executives in a firm have a decisive influence on getting new technology into use. These positions are typically occupied by graduates of colleges and universities. However, it is necessary to reorient the alternatives offered by the universities toward limited careers in specific fields. Offerings should include programs with a broad knowledge base to help the managerial people adapt to technological change. For instance, there is a great need for programs combining the

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basic parts of engineering, industrial economics, industrial management, information systems, resource administration, and effective personnel administration. A very important aspect of technology utilization is the encouragement of education abroad.

A considerable investment in time and money has been committed in Venezuela under the Ayacucho Scholarships Program. From a total population in secondary schools and universities of approximately one million, over ten thousand students

will benefit in the first three years. Their programs will range from technical training to graduate education. The investment for the first three-year period (1974-76 ) was approximately 500 million bolivars..

Success of the foreign student program requires a very rigorous student selection process so as to maximize the return on Investment for the developing country. Table 1 shows an example of the "education abroad" program started in 1974.

Of the students returning from the USA

in 19 7 5, 51 per cent did not complete the intended program, hi September 19 7 6, the figure had risen to 71 per cent. II~ would be beneficial if the causes for these low figures were known. :

For the study abroad programs, emphasis should be placed on appropriate fields of study and grade levels which would contribute to the needs of the developing country. Standards should be attainable, and designed to encourage the return of the student to his native country.

TABLE 1

PERCENTAGES OF STUDENTS RETURNING TO VENEZUELA FROM THE UNITED STATES OF AMERICA

Reason for Return 1975 1976 *

Program Completed 39 28 Job Transfer 10 3 Poor Health 13 13 Personal Reasons 20 5 Academic Inability 6 21 Others: Resignation, Legal, etc. 12 30

* Figures show returns until September 1976.

Source: The institute of International Education

Note: In September 1976, there were 3350 Venezuelan students in the USA unde~ the scholarships program distributed as follows:

Undergraduate 2 4 0 0 Graduate 3 91 English 5 5 9

Attendance was at more than 3 0 0 colleges in 4 8 states,


The graduate student should apply problems of his country to his choice of sub- jects for study and theses. _~ilso, students should look for faculty advisors who understand the needs of the student and the development status of his country.

Investment in education is a matter of priority for a country in its struggle f o r economic development. The investment in human resources through education is indispensable. 13 The return on education investments, whether for short technical types of programs or long ones involving graduate education, should at least equal the opportunity cost lost by not making the same investment in public works, agricultural development, or welfare.

THE FUNCTION OF LINKERS

Generally, in the technology transfer process, there is a linker or change agent who serves to adapt, innovate, or search for technology which is appropriate for the industry which it will benefit, and the knowledge level of the users. A linker may function between governments, industries, government and industry, or any two or more parties. Figure 2 illustrates this position.

The human element is important in the transfer process. Attitudes, type of work, professional goals, technical skills, person- ality, innovativeness, and other personal things, contribute to the effectiveness of communication between the diverse participants in the transfer process. Organiza- tions exist in which the responsibility for innovation and change rests with individ- uals who do not have the qualities needed for this work. This point is emphasized by the following example: A scientist direc- ting a publicly owned Institute of Technol- ogy, oriented toward professional prestige for himself and his institute rather than toward dedication of institute objectives toward his nation and industry, will often commit the resources of his institution to areas of advance research with mystical objectives and little or no potential for domestic use.

The role of the linker is to innovate and to bring new advanced technology into the organization. The effective linker tends to have wisdom on the level of investment possible, and the attainable return on the investment.

Among the linking organizations with responsibility to innovate useful things are:

1. The universities

SOURCE -->

l l LINKER -+

L ] USER

Figure 2 The Linker in the Technology Transfer Process*

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*There might be more than one user. The linker might be in the source or user organization or both. For this reason, the place in the process is marked by dasher lines. The reverse flow of information may also flow through this position. The linker may be one or more persons or an organization.

2. The Institute of Economic Development

3. The government

4. Industry

The University

University participation in the transfer process has been very active in the United States of America. Faculty members: engineers, scientists, economists, and business administration specialists, sociologists, and lawyers have all served as consultants to industry and government. 12 Mention is made of this to illustrate that the linking function of a university is performed in developed as well as developing countries. There are critics, however, who claim that such activity is contrary to the traditional responsibilities of academic people and that they should confine themselves to basic research and teaching.

Some public universities claim auton- omy from the governmental authorities which establish the educational and technological policies of the country. The policy has been to isolate the universities from the national technological needs. Masses of students continue to be attracted to the social sciences and economics while the enrollment in the applied areas is rela- tively low. One experiment, administered by the Venezuelan government less than a decade ago, has begun to give positive results. The Simon Bolivar University was assigned the central role in experimenta- tion on the formation of programs in engineering and computer science. The Univer- sity has the authority to select students and uses rigorous selection procedures in choosing students for admission. Actually, the Simon Bolivar University is acquiring a very prestigious academic reputation. Recently, this university started graduate

programs directed especially toward business sectors offering courses at times when they could be taken by professional work- ing people. Regardless of this effort, however, there still exists a vacuum in communication between university and industry apart from the short courses and continuing education programs. There is still insufficient technological linking between these two sectors. :

It is important that programs be developed which will encourage the linking of business with the academic and research centers. This is especially important for remote regions of the country. Of course, there will be difficulty in developing these programs as long as universities continue overconcentration in traditional education

: modes. 12 It is suggested that linkages be encour-

aged between government and private industry which would coordinate and pro- mote the following:

1. Representation by industry in academic programs.

2. Financial support for industrial research in university laboratories, industry, and government.

3. Interchange programs of development between industrial administra- tors and the universities.

4. Special training for university students in specific industrial tasks.

The Research and Development Institute

The future of technology and development in any country depends greatly on the efforts of its scientists and science ad- ministrators. 5 The primary role of m-

:search and development organizations in developing countries is for the innovation


and adoption of new or appropriate technology. Rapid progress is dependent upon governmental effort because of the enor- mous amount of resources required for country-wide development. The research and development organizations should provide a major link between the various sectors of industry in developing nations. In keeping with this linkage function, these organizations should offer their services in the search for appropriate technology to industries which cannot support the ex- pense of a laboratory and major research development effort.

When the communication between the university and industry is low, the R&D organizations should act as a linking mechanism between them. If the R&D organizations show a tendency to be isolated from the real needs of the country, this must be prevented by the Ministry of Development. It is advisable to avoid the proliferation of small R&D organizations concentrated upon specific areas and which require huge financial and human resources for their efforts. There are too few resources in developing countries to warrant such expendi- tures.

The Institute of Scientific Investigations is the Venezuelan organization which functions for industry and government to acquire technology from other developing countries. Lbgically, Venezuela must invest more on education, social welfare, high- ways, sanitation, and other sectors than on research and development. Hopefully, as the country progresses, these percentages will vary toward greater R&D support.

Industry

In the free world, the provider and receiver of new technology is generally in the industrial sector. Governments, universities, and other institutions play a linking part for both developing and developed coun-

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tries. 12 Industry is the ultimate user of commercial technology. Technology is received from other industries, the government, universities, and the R&D institutions. In developed countries, this is the normal process. Earge corporations invest vast amounts in research and development for new processes oriented toward the needs of the marketplace at costs which permit a satisfactory return on their investment. The same model can be effective in developing countries in a free world but at a lower scale and with the disadvantage of excessive costs for the importation of technology which is not produced nationally.

The investment in R&D in local firms is usually limited to laboratories for the control of quality. When a research and development investment is made in a subsidiary firm of multi-national corporations, the

: resulting product or technology acquisition belongs to the mother firm. Neither the host country nor the subsidiary firm of the corporations derive any major benefit from such an investment in R&D, as it is really a cost to the corporation unless it is used to generate and develop future technology and[or products. Companies with adequate resources must still organize their Depart- ments of Research and Development as they are indispensable for effective use of foreign or domestic technology in the search for products which will be attractive to the marketplace. Developing countries with firms such as this are in the small minority.

Small firms are those most likely to use the services of governments and universities because of their lack of expertise on questions of contracts, finances, marketing, engineering, and administration. Conse- quently, these firms are at a disadvantage when in competition with established companies. Assistance from a governmental institution such as the Institute of Produc- tion or the Minister of Economic Develop-

ment is necessary for survival. In some developing countries, small

firms have grouped to establish R&D Center Laboratories fo r quali ty control and centers for evaluating and training factory personnel for part icipating members. In Vene- zuela, such centers usually receive financial and personnel aid from the government.

It is impor tant that an organization should not invest in new products without an objective evaluation of the resources necessary to complete the development of the new product . Progressive firms have adopted plans and procedures as the base for this appraisal. Areas of analysis could include:

INFORMATION MANAGEMENT

The transfer o f technological informa- t ion is a process o f communicat ion which couples the producer o f the technology with the user. 7, Those who produce technology or information are also acting as users o f it. Both scientists and technolo- gists are mot ivated by the needs o f consumers, their preferences, and financial support .

Media for transmission of information are many; following are several:

�9 Informal discussions between members of a single firm.

1. Technical knowledge �9

2. ~ o d u c t i o n : techniques, equipment, processes and control

3. Plans for material flow including pro- curement, t ime of delivery, etc. ~ �9

Informal discussions with people from other firms in the same industry.

Conferences internal to the firm.

Academic programs.

4. Marketing plans and control

5. General administrat ion

6. Financial and accounting systems

Each of these functions should receive careful at tent ion. :

�9 Professional symposia ences.

�9 Technical reviews.

�9 Non-technical books.

�9 Technical books.

or confer-

A comparison of al ternate systems is advisable to analyze costs and concrete benefits within the l imitat ion of available resources. Of all areas subject to examina- tion, the most impor tant factor is in the selection of directors and officers. Profi- cient coordinat ion of all integral parts of an organization is a prerequisite function in order to establish a workable and profit- able system. Without competent excellence in management and administrat ion techniques, the company ' s existence will be very unstable and uncertain. Journal of Technology Transfer, 3(1), 1978

�9 Professional magazines.

These are the most common means by which the transfer intermediary or linker transfers technology.

The environment within a firm which encourages dissemination of information has a great deal to do with the effectiveness of the transmission process. The accessibility and dispensing system of the information storage centers will determine the demand and the amount of use of the

31

system. Excessive restrictions to access of information will destroy the usefulness of an information center. Therefore, personnel in storage centers should make sure that reliable material is available and read- ily accessible to those people who need to use it.

The amount of technical information which is produced in the free world is so great that documentation centers are essential. A mechanism is necessary to en- sure that this need is fulfilled by having a few experts review all publications and produce abstracts for much larger groups of people. For the public sector of the United States, the Department of Com- merce publishes abstracts of thousands of reports, theses, and other documents which are produced at the federal level. Also in the USA, the Department of Defense oper- ates a documentation center and publishes volumes of such abstracts. :

Another useful type of information is an encyclopedia. For instance, the Ency- clopedia of Information Systems and Ser- vices by A. T~ Ki'uzas is an excellent source of knowledge. This encyclopedia provides information on electronic information storage and retrieval systems, information ex- posing services, sources, documentation centers, libraries, data collection and analysis centers, micro-fiche sources, and assess- ment centers. It: also describes and analyzes 1,750 organizations including 225 international ones, both public and private.

A documentation center must sell it- sell If the user does not come to the center, the center should look for the potential consumers of this information. There is no value in storing information unless it is used. One should consider the technical language of publications and the capacity of the user's understanding.

Another form of transfer with a great deal of potential for developing countries is that of the extension service, generally offered to small industry and agriculture. 32

In the United States, the agriculture extension service has been a most effective medium for technological transfer. Vene- zuela also has an extension service for agriculture similar to that in the United States. The Minister of Agriculture man- ages 322 extension specialists providing information on agriculture where it is needed. '

Also, developing and developed nations collect and disseminate information through their embassies. The liaison, in this case, is performed by people who collect and trans- mit the information. There are also international organizations which publish a daily bulletin of technical importance. Or- ganizations such as the United Nations, the Organization of the American States, and the Office of Economic Development dis- tribute information to potential users. At the present time, the establishment of a bank for a Technological Information Administration is being considered which could facilitate the process of technological transfer.

CONCLUSIONS

Venezuela is searching for the necessary technology for industrial development. Proposed methods for acquiring this technology include:

The Venezuelan government should rely for the most part on mixed investments and technical agreements where- ever possible rather than obtaining technology through the direct investment method. The benefit derived from imported technology for industrial development could be obtained, yet under mixed investments arrangements, control of capital could be retained by Vene- zuela.

Venezuela should strive to alleviate

the vacuum that exists at the technician's level Stimulus offered by the government to encourage interest in a technical career could start a new trend in universities, private enter~ prise, and society. Currently, this is the major barrier to implementation of the transfer process.

Table 1 showing figures o f the "'education abroad" program started in 1974 are quite discouraging. Although the causes for the low number o f program completions is not known, it is reason- able to assume that there may be a common factor among the five categories for non-completion. For instance, a. language barrier. It'is noted that ten and a half per cent o f the Venezuelan students in the USA in scholarship programs were studying English. I t is rec- ommended that other languages be made a part of the education system, preferably beginning at the elementary level and continuing through the second-

ary schools. European countries have utilized this method with financial bene- f i t to the government and private industry. A higher level o f employment for their people with multi-language capa* bility has resulted.

The development of programs to encourage the linking of business with the academic and research centers is very importanL However, this w o u l d require a radical change by the universities in their traditional education modes. :

Establish other extension services similar to that o f the Ministry o f Agri- culture so that technical information could be provided to other types of industry.

Governmental approval of a bank for Technological Information Admin- istration should be sought to facilitate the process of technological transfer,


REFERENCES

1. :Balasubramanyam, V.N.:, International Transfer of Technology to India, Praeger Publishers, 1973.

2. Doctors, S.L, The Role of Federal Agencies in Technology Transfer, The M.I.T. Press, 1969.

3. Encyclopedia of Information Systems and Services, 2nd Ed., Edited by Kruzas, A.T.~ A.T.:tCrusas, 1974.

4. :Fuerzas Armadas de Venezuela, Organo del Ministerio de la Defensa, Nacionaliza- ci~n del Petroleo, pp. ~3-49, No. 264, Caracas, 1976.

5. ;Hawthorne, E.P., The Transfer of Technology, Organization for Economic Cooperation and Development, 1970.

6. Horton, F.W. Jr., How to Harness Information Resources: A Systems Ap~ proach, Association for Systems Manage~ ment, 1974.

7. Hough, G.W., Technology Diffusion: Federal Programs & Procedures, Lomond Books, 1975.

8. Republica de Venezuela, Ministerio de Hacienda, Direccibn Nacional de Presupues- to, Resumen de la Ley de Presupuesto de 1976, Caracas, 1976.

9. Republica de Venezuela, Ministerio de Hacienda, Direccidn Nacional del Presu- puesto, Exposicidn de Motivos del Proyeco to de Ley de Presupuesto 1977o

10. Technology Transfer, Edited by Davidson, H.Fj, Cetron, M.J.,: and Goldhar, J.D., Proceedings of the NATO Advanced Study Institute of Technology Transfer, Noordhoff, 1974.

11. Technology Transfer in Research and Development, Edited by Jolly, J.A.:, ~md Creighton, J.Wo, Proceeding of the Briefing on Technology Transfer Projects at the Naval Material Command, Washington, DC,

:1975.

12. Technology Transfer: Successes and Failures, Edited by Manning, C.K.:, San Francisco Press, 1974.

13. The Transfer of Technology to Devel- oping Countries, Edited by Spencer, D.L. and Woroniak, A., ~Howard University, 1966.

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the transfer of technology to developing countries: a critical analysis regarding venezuela

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