Developing countries and the aircraft industry: match or mismatch?

For many industrially developing countries, technology transfer is seen as a road towards technological and economic development. Indonesian experiences with the aircraft industry suggest that the transfer of technology in this sector is extremely difficult, and even if technology is actually transferred it does not necessarily lead to a viable industry. To determine the key elements for a successful transfer of technology, research was undertaken with a focus on the process of technology transfer at the operational level in industrially developing and developed countries. The research revealed that many technology transfer projects do not or, at best, only marginally contribute to technological development. It also showed that the aircraft industry, and possibly other industries as well, might be better suited to specific countries. To avoid making investments in industries that will inevitably not be competitive, industrially developing countries should be careful when deciding which types of industry to foster.