International technology and knowledge transfer as a tool for building a modern economy

The mechanism which allows for knowledge from abroad to travel to the domestic market is called the international technology transfer. It functions by using appropriate channels of distribution adapted to the form of knowledge being transferred, and by adapting to the level of development of the country receiving this technology. The use of external sources of knowledge where there exists a technological gap accelerates technological progress and reduces the costs of a country's advancement. At the same time, the under taking of national research and development is essential for proper absorption and expansion of knowledge coming from external sources. By adopting such assumptions, the process of international technology transfer should be considered as a tool that favors the building of a knowledge-based economy, particularly in terms of openness of markets and development of communication technologies. The aim of this study is to show the mechanisms of technology and knowledge transfer in the process of development of a given economy. Further more, the author of this study will also attempt to show the role of international technology transfer in the era of dynamic economic change. Reflections contained in the paper do not have definite characteristics and should be treated as an opinion in the discussion in fields management sciences.