The contribution of FDI firms for technology transfer in the case of “Bole Lemi Industry Park” and “Eastern Industry Zone”

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Date

2018-10

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Publisher

Addis Ababa University

Abstract

Transfer of technology is the key element of the industrialization, growth and economic development of the countries. The transfer of technology through foreign firms would be effective if and only if when there is a high level of local participation and if there is a clear policy and binding law in which these foreign firms in the industry park and zone will engage in the capacity building activity for local firms. This study aims at exploring the level of linkage between foreign firms in the industry park and zone Vs local firms and how foreign firms in the industry park and zone engage in the technology capacity building activity of local firms and local personnel’s directly or indirectly and also reviews the policies and laws in this specific topic.The quantitative and qualitative models have been significantly utilized in analyzing the contributing factors of technology transfer process. The main focus of this study is to evaluate the level of contribution of foreign firms specific in industry zone and parks for technology transfer by considering the foreign firms technological level and potential for technology flow.Majority of these foreign firms in industry park and zone export their products for European & American market.So to satisfy the end product consumers’ needs, these firms used modern machineries and technologies to produce standard product. The conducted survey analysis shows that foreign firms found in industrial park & zone have a big potential for technology transfer for local firms and employees. But, it needs extra work to benefit from these firms as a means of least expensive technology transfer mechanism. The designed policies and laws regarding technology transfer from these firms need to review to encourage the firms through incentives or pre-arrangedinvestment agreements. To address the problem, the researcher proposes policy implications by putting the contributing factors to effectively transfer technologies from FDI firms.

Description

A Thesis is submitted to the department of public administration and development management of Addis Ababa University in Partial Fulfilment of the Requirements for the Degree of Master in Public Management and Policy (MPMP)

Keywords

Fforeign firms, Industry park, Technology Transfer

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