Externalities in North-South technology transfer: the case of CNG engines in Iran

This contribution focuses on illuminating the challenges and difficulties of North-South technology transfer. The central message of this paper is that North-South technology transfer is not simply a contract between two transacting firms and does not depend only on intra-firm and inter-firm factors. The process may also be influenced by a number of external factors, beyond the control or power of project managers. However, understanding of these external factors greatly influences the success of firms' technological development. These externalities could arise from North-South contexts variances, international atmosphere and even by different levels of both sides' actors involved in the process. Using an in-depth case study analysis for collaboration between Iranian and German companies, this article develops a clearer understanding of external factors which affect the cross-border technology transfer process

The dynamics of technological catching-up: the case of Iran’s gas turbine industry

Today, fostering gas-fired power plants is recognised as a significant step towards a low-carbon economy. Gas fired-power plants are favoured over other types of fossil-fuelled power plants due to their various advantages, including lower emissions, flexibility of technology, higher efficiency, short construction times and lower capital investment. The gas turbine is the main machine and the most technologically advanced part of a gas-fired power plant. There have been a limited number of companies in industrialised countries that have developed these sophisticated technologies over the last 50 years. The global market for land-based gas turbines has an oligopolistic structure. The evolution of these technologies has been greatly influenced by countries’ government policies, and in particular energy policies. In this light, one question is: to what extent have industrialising countries built their technological capabilities in gas turbines? Consequently, one focus of interest here is the way in which, and the extent to which, industrialising countries have synthesised their indigenous technology development efforts with overseas technology inflows. Countries such as Iran, India and China, which have large and growing domestic electricity markets, are appropriate candidates for research in order to understand the possible technological gaps and associated dynamics between the industrialised and industrialising worlds. To answer these questions, this thesis research deals with Iran’s gas turbine industry and, for the first time, systematically examines this industry in the context of a developing country. The study delves deeply into the dynamics of interactions between indigenous technology development and overseas technology inflows. It casts light upon the influences, challenges, and difficulties associated with technological catching-up processes. The framework of the analysis is based on an extensive literature review on technological catch-up, the substitution/complementarity debate, and the gas turbine industry. The framework was operationalized through qualitative interviews as well as supplementary documents. The thesis uses a ‘dynamic approach’, and argues that understanding the interaction processes cannot be reduced to examining only the type of relationship between the two technology sources. Instead, far more attention needs to be devoted to analysing the complexity and associated influences on this relationship. The thesis also provides empirical insights into the development of gas turbine capabilities in India and China, the two largest emerging economies. It reveals that a high level of state involvement in developing countries is a prominent feature of the industry. It also demonstrates that the evolution of the industry also in both developed and developing countries is closely interrelated with each country’s national energy policies

Innovation in technology transfer: host-oriented strategic R&D alliance

This paper examines a major technology transfer project in Iran that represents a departure from historical practice and may constitute a new model for technology transfer. The project involves an alliance between Iranian and German enterprises with the objective of developing and commercializing a CNG (Compressed Natural Gas) based engine for Iran. The aim of this paper is to demonstrate the central role of knowledge and competence creation through R&D alliance. It is argued that this model, which we call 'host-oriented' alliance, assuming highly competent management, provides an important technique for the technological catching-up process in which many developing countries are currently engaged

Policy lessons from the execution of fuel dual-pricing: Insights for fuel-subsidizing economies

This paper for the first time systematically examines fuel dual-pricing policy (FDPP) in the context of developing countries. Governments in most of these countries pay a heavy price for subsidizing fossil fuels and thus, most of these countries suffer from adverse economic, social and environmental consequences. In these circumstances, governments cannot take the risk of social unrest and economic shock by quickly removing fuel subsidies. FDPP can be addressed as a transitional policy to liberalize fuel prices. However, the literature fails miserably to address the dynamics of FDPP execution due to the lack of valid empirical data. Accurate analysis making use of long-term valid data could shed light on this dilemma. Through a scenario planning approach, this study evaluates the positive and negative impacts of executing or terminating FDPP. In general, it is concluded that, despite difficulties in formulation and implementation, FDPP has the potential for several positive economic and environmental effects through which fuel-subsidizing economies can employ FDPP as a transition pathway to liberalizing fuel prices

International technology transfer and the dynamics of complementarity: a new approach

Latecomer firm's catch-up through indigenous R&D and cross-border technology transfer embeds various influencing factors that are present simultaneously – beyond the will or power of managers and policy makers – and that have to be recognised, analysed and taken into account. Despite the increase in literature on substitution/complementary relationship, some ambiguity remains in understanding the complexity of complementing between indigenous and overseas technology sources. Unlike the majority studies on complementarity, this paper suggests the dynamic approach by which scholars are able to reach a deeper understanding of the dynamics, challenges and difficulties of these relationships. This study builds a theoretical framework to being operationalized in the context of Iranian latecomer firm located in gas turbine industry. This paper shows that taking the dynamic approach is able to reveal the strategies by which the latecomer firm deals with the difficulties of acquiring advanced technologies. Although complementary relationship exists, it is a strategic vision to understand how a latecomer firm complements its indigenous efforts with overseas technology sources. Different kinds of insights will be provided in terms of national-, industry- and firm-level factors and the strategies by which a latecomer firm can deal with these factors

Heavy duty gas turbines in Iran, India and China: do national energy policies drive the industries?

This paper for the first time systematically examines the heavydutygasturbine (HDGT) industry in the context of developing countries. It provides a comparative analysis of the HDGT industries in Iran, India and China. It contrasts their national strategies, the historical development of their technological capabilities, the similarities and differences in approach, the varying evolutionary paths and policy drivers and the reasons for their differing outcomes. This paper argues that a high level of state involvement is a prominent feature of HDGT industries in developing countries. It also argues that the development and evolution of the HDGT industries in these countries is closely interrelated with the countries’ national energy policies. It clarifies why such an advanced and sophisticated industry is a strategic choice in one country, while it is seen as an inferior choice in anothe

Technological catch-up in complex product systems

This paper highlights distinctive features of technological catch-up in complex product systems (CoPS). This paper contrasts catch-up trends in CoPS with trends in mass-market commodity goods, such as those produced in South Korea. Developing countries are lagging behind in many CoPS areas and technological catch-up in CoPS industries is a very challenging process. This paper argues that due to specific technological and market regimes, the dominant model of technological catch-up in CoPS is based on path-following catch-up. Stage-skipping catch-up is only possible in minor technologies and path-creating catch-up is almost impossible in CoPS industry

Iran Industrial Policy Case Study

행사명 : Workshop on Innovative Development Case Studie

Promoting industrial competitiveness in complex product systems

노트 : Title) Frontiers in Development Policy: Workshop on Innovative Development Case StudiesDate) November 21-22, 2013Venue) Hotel Shilla Seoul, Seoul, Republic of Korea (http://www.shilla.net/) 행사명 : Workshop on Innovative Development Case Studie