High technology in developing countries: Analysis of technology strategy, technology transfer, and success factors in the aircraft industry

Economical development is highly related to technological development. It is therefore not surprising that many of the industrially developing nations follow explicit strategies to increase their technological competence level. Industrially developing countries may even pursue a strategy of developing high technology competencies. This paper analysis the strategies of some developing countries in a particular high technology industry: the aircraft manufacturing industry. The focus is on Brazil, China, Indonesia and Romania. The approach that each of these countries has followed towards developing an indigenous aircraft manufacturing industry is described. Next, the current status of these national industries is analysed. It is concluded that industrially developing countries are stuck in a very difficult situation. It is extremely challenging for industrially developing countries to develop a competitive position in this high technology and global industry. The analysis shows that it is questionable whether technology transfer is effective. As a consequence it may not be a good strategy for industrially developing countries to follow a leapfrogging technology strategy. Instead a more incremental approach towards technological development may be more appropriate.