Technology transfer in transitional economies: a test of market, state and organizational models

Abstract

Two competing views dominate the debate on restructuring the largely military R&D sectors in transitional economies. Liberals view unadulterated market forces as the key to stimulating technology adaptation to commercial markets. In contrast, most policy and senior management stress the “market failures” perspective that rely on state subsidies for fostering technology commercialization. By drawing on case study as well as survey research data from 100 Russian scientific institutes, this paper suggests the importance of a third, organizational perspective. Inter-firm relations, as well as market and subsidy factors, are all considered for their effectiveness in driving technology transfer attempts. Particularly important to such attempts is the spin-off process, by which old state institutes incubate new firms and, hence, new and important partners in their struggle to commercialize state R&D.