Innovation, Knowledge and Development (IKD), Open University
Abstract
Kenya has started to rely significantly on technologies developed in developing countries particularly China rather than those from advanced countries such as the United Kingdom, Germany and Japan. Using data from furniture manufacturing firms in Kenya, the paper compares the investment cost and the scale characteristics of the technologies (machines and equipment) from China with those from advanced countries and Kenya. By examining the characteristics of the firms that have invested in technologies from various sources, the paper concludes that the technologies from China and Kenya have lessened entry barrier (specifically high capital cost) for new firms, compared to advanced country technologies. Chinese technology appears to serve as an entry mode more than the Kenyan technology. In terms of barriers to entry, therefore Chinese and Kenyan technologies appear to be more appropriate for Kenya (and more generally developing countries) than advanced country technolog
