Technology transfer: International collaboration in Sri Lanka

The real tests for technology transfer are whether such transfers have contributed significantly to the vibrant development of the recipient industry. Technology transfer (TT) process that is knowledge driven demands a recipient industry with adequate capacity for absorbing new knowledge. International joint ventures and subcontracts employed in building material and construction can be serious vehicles of TT provided they contribute to providing higher quality inputs into the wider industry. These issues are examined through a survey of construction subcontracts during the period 1985-2002. The respondents indicated that moderately favourable conditions for TT existed in the completed projects. Nonetheless, the paper argues that negligible real productivity changes in construction in Sri Lanka in the recent decade point to stagnation in growth in local absorptive capacity. China in contrast has placed a balanced emphasis on upgrading building materials and equipment, design and construction, and built up an impressive absorptive capacity, with modernisation of the entire industry in prospect. The paper suggests advance planning for TT in foreign funded projects to ensure greater participation of local firms, together with a balanced focus on efficient and timely execution of projects, the profitability of participants, and realisation of TT goals.