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International Transfer of Technology to India: The Case of the Tractor Industry

Chaudhari Shekhar

IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: Based on an indepth study of five major manufacturing firms both in the private as well as the public sectors, this paper discussed the process of technology acquisition and assimilation in the tractor industry and draws some implications for public policy. T he study revealed the following interesting results : i) An increase in bargaining power during the period 1960-74 of Indian firms over their foreign collaborators; ii) A dominantly satisficing technology search behaviour with the perceived immediate market needs as the major concern of the technology importing firms; iii) A significant influence of Government Policy on the choice of manufacturing technology to match small capacities; iv) A change in R & D focus from production related trouble shooting and indigenization to quality assurance, value engineering and new product development with the onset of competitive forces in the industry; and v) The importance of providing “technical leadership” in making innovative technology choices and the need for appropriate organizational structure and systems to match the technological tasks. Major data sources for the research were indepth interviews of some 60 senior company executives and various documents like detailed project, reports, organizational announcements, etc.

Date: 1983-05-01
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