A case study method is adopted as the research strategy to explore reasons for success and draws the lessons learned. Robert Stake (1998) points out that crucial to case study research are not the methods of investigation but that the object of study is a case: “As a form of research, case study is defined by interest in individual cases not by the methods of inquiry used”. Other researchers, such as Robert Yin (1994), place more emphasis on the method and the techniques that constitute a case study. Case studies suggest that substantial technology diffusion occurs due to FDI (Blomstrom and Kokko, 1997). Thus, this study follows a qualitative approach to identify the factors that enable technology transfer subsequently suggest policy priorities. Technology transfer is a highly complex process influenced by domestic and international factors. The end result for the recipient must be the ability to use, replicate, improve and, possibly, re-sell the technology. Transfer of technology is more than just the moving of hi-tech equipment from the developed to the developing world, or within the developing world.
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Moreover, it encompasses far than equipment and other so-called “hard-technologies”, for it also includes total systems and their component parts, including know-how, goods and services, equipment and organizational and managerial procedures. Thus, technology transfer is the suite of processes encompassing all dimensions of the origins, flows and uptake of know-how, experience and equipment amongst, across and within countries, stakeholder organizations and institutions. It is about the complex process of sharing knowledge and adapting technology to meet local conditions. Technology Transfer strengthens human and technological capacity, and promotes commercial markets for climate-friendly technology when successfully implemented in Brunei Darussalam. The development of new technologies has always been central in industrial activities. Webster’s (1989, p.1872) offers just three definitions of technology, none of which sets definitional controversies to rest. Technology is defined as: 1) the science or study of the practical industrial arts; 2) the terms used in a science, technical terminology; and 3) applied science. None of the major works on technology transfer uses any of these definitions of technology. Works on technology transfer generally focus on technology as an entity, not a study and certainly not any specific applied science. The most common view of technology is a tool, and then discussions proceed as to just what type of tool qualifies as technology. The formation process of technological changes is on one hand rational, goal-oriented or optimal and on the other hand adaptive, cumulative and evolutionary (Christiansen, 2001). Schumpeter proposed a three-stage process of technological change: invention constitutes the first development of a scientifically or technically new product or process; innovation is accomplished when a new product or process is first commercialized or made available on the market; and finally, in the diffusion stage, a successful innovation becomes widely available (Jaffe, et al. 2002). Grubler (1999) gave the process of technological change a more life-cycle- like six-stage typology: invention, innovation, niche market commercialization (adoption), pervasive diffusion (diffusion), saturation and senescence (gradual deterioration of function characteristic). “Technologies are selected not only on the basis of technical or economic performance measures but also by prevailing socio-political and cultural norms, rules and preferences” (Christiansen, 2001, p.11). Technological changes are as well constrained by various kinds of barriers and inertia. A technology’s successful diffusion depends not only on
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the value of the idea or innovation but also on intertwined socio-economic, technological and political factors. The main barriers to technology transfer are81
a. Institutional: inadequate legal and regulatory frameworks, insufficient assessment of technology needs and implementation plans.
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b. Political: instability and corruption.
c. Technological: inadequate infrastructure, lack of technical standards and supporting institutions, low technical capabilities and technology knowledge base.
d. Economic: instability, inappropriate subsidies, poor macro-economic conditions and non- transparent markets.
e. Information: inadequate access to technical and financial information and poor dissemination of information to technology users.
f. Financial: insufficient capital, financing instruments that favour traditional and large-scale projects, risks for foreign investors.
g. Cultural: consumer preferences and social biases.
h. Legal: uncertain ownership, lack of intellectual property-rights protection and unclear arbitration procedures.
i. Participation and consultation: lack of local participation and inadequate understanding of local needs.
Successful technology transfer addresses an environmental problem, “Does the project reduce green house emissions or help countries adapt to the effects of climate change? Will the project improve other environmental or social problems?”; build the market for environmentally-sound technologies, that “may work on a project level but does it improve the technology’s ability to gain market share?”; if these are cost effective, “Is the technology worth buying or investing in? Can efficient operation be maintained? Has it been evaluated on a life-cycle cost basis?”; if they stand a real chance in the real world, “Is there enough accessible information about the technology? Is there adequate human, technological and institutional capacity to support a market in the technology? Is the technology politically acceptable? Is it replicable?”; and does it
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make other problems worse, “Will it create new or exacerbate existing environmental or socio- economic problems?” Technologies that meet these criteria have a good chance of creating a lasting market for which a successful technology transfer must overcome barriers. Unique conditions in every country rule out any generic approach to technology transfer. Identifying sectors of Brunei Darussalam that would benefit most from a technology and selecting the most appropriate technology are the first steps in the technology-transfer initiative towards the nation’s aspiration to transform its economy from the hydrocarbon-based industry to the technology-based industry that promotes rapid industrialization. After assessing technology needs, the state can write a plan to deploy the technologies. A strategic long-term approach allows the government, industry and foreign technical assistance programmes to take action effectively. A transparent and strategic technology-needs assessment and implementation plan can deliver benefits to the fullest extend in the technological development crucial for Brunei’s industrial sector.