JBS Vol 07. Num 2. 2005 - TECHNOLOGY TRANSFER AS AN INSTRUMENT TO PROMOTE GROWTH AND DEVELOPMENT: THE BANGLADESH EXPERIENCE

This paper reflects Bangladesh’s experience in transferring technology to various sectors of the economy. The paper presents an overview of technological developments in Bangladesh, and examines the role, mechanisms and agents of technology transfer in selected sectors. Although, technology transfer took place through various mechanisms, import of machinery played a dominant role. Due to poor technology assessment capability and distortions in factor prices, however, a number of technologies transferred to Bangladesh turned out to be rather inappropriate. Inadequate emphasis on science and technical education contributed to poor skill composition of the industrial labor force that constrained assimilation of imported technology. Underdeveloped and poorly funded national research infrastructure, and absence of any in-house research facilities seriously constrained adaptation of imported technology to suit local factor endowment, as well as the environment. As a result, technology transfer in Bangladesh never attained a dynamic character and the country continued to remain a market for technologies developed in other countries, with a shift to new sources such as the Republic of Korea, China, Thailand and India that have made significant progress on the technological front. Moreover, as the small and cottage sector, that employed most of the poor, benefited little from technology transfer, its contribution to promoting development was marginal indeed. There is thus a need for formulating a comprehensive technology development policy for the country that spells out a well-defined role for technology transfer that strengthens the technological base of the country. For the poor to benefit from transfer of technology, i.e., for enhancing its role in promoting development, concerted efforts are needed to upgrade the technology used by the poor through transfer of appropriate technology to the small and cottage sector. There is also a need for implementing land and tenancy reforms for improving access of the landless agricultural wage labor to land and, thereby, benefit from technology transfer in the agricultural sector.