Know-how And Know-why

Between levels or "rungs" of technological competence. For example, Sanjaya Lall (1987), distinguishes between know-how and know-why technology. Know how comprises the knowledge of how to make the best use of the technology or technological capacity acquired. Know-why involves the understanding of the nature of the underlying materials, process and product technologies, and leads to a substantial adaption, improvements and even replacement of existing materials, processes and products.

Technology Transfer, Dissemination And Absorption

Technology transfer
usually means the transfer of technology within or between firms across national borders, but it could equally be between other institutions in the same country. Firms can use several bonds that facilitate the transfer technology.

Keller and Chinta identify intrafirm and interfirm bonds as facilitating transfers as follows:

Intrafirm bonds
The relationship within a firm that go across national boundaries and encourage the transfer of technology.
Iterfirm bonds
Relationships among firms across national boundaries also encourage the transfer of technology.
Dissemination
implies the diffusion of technology away from the firm or institution possessing or acquiring to other firms, that is, externalizing its ownership or use.
Absorption
indicates the competence of an economy which acquires technology to utilize or adapt it to its advantage.

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Technology And The Multinational Enterprise
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