Technology transfer through subcontracting in developing countries

Past discussions on technology transfer (TT) in construction have mainly focused on technology acquisition during the execution of projects involving an overseas party. This paper extends this discussion to the problems and prospects of internal transfer of technology within the domestic construction sector in order to boost indigenous construction capacity. Empirical evidence from subcontracting arrangements in Sri Lanka is used to test the theoretical analysis. The theoretical framework identifies three interdependent TT goals. Effective transfer of technology within the confines of single projects cannot be a major vehicle for TT to domestic industries as a whole unless advanced knowledge gained in such projects is effectively diffused within the domestic industry. Nevertheless, joint ventures and subcontracting arrangements involving foreign parties can be beneficial. For the effective internal transfer of technology, the design and construction systems employed in internationally managed projects should seek to facilitate the internal transfer of technology and thereby boost domestic construction capabilities. The possible approaches to achieve this outcome are considered in detail.