Implementation Strategies for Facilitating Knowledge and Technology Transfer from Foreign Direct Investment

Abstract

Currently, there are flow of foreign direct investment who establish and invest privately new firms and to the industrial parks that change orientation of developed as well as developing countries to attract process in industrialization in Ethiopia. However, national and regional
government face major challenges: absence of clear strategies, implementation guidelines, skilled manpower, governance institutions and university-industry linkages that facilitates as catalysts for knowledge and technology transfer system to domestic firms from foreign direct investment. The objective of this study is to develop a frameworks and guidelines for facilitating knowledge and technology transfer from foreign direct investment to domestic firms in Northern Ethiopia, in
ways that offer significant co-benefits. The methodologies employed were systematic literature review of existing studies on knowledge and technology transfer, analysis of opportunities and
challenges, benchmarking from international best practices, field observation and semi-structured open ended interview with actors and stakeholders of industrial parks and domestic textile and garment industries in Mekelle. The study identifies main strengths and weakness on
knowledge and technology transfer, develops effective strategies and implementation guidelines i.e. Human resource, Finance, Policies that facilitate the knowledge and technology transfer from
foreign direct investment to local domestic firms in line to industrial parks development projects in the region. Lastly, organizational structure of the knowledge and technology transfer system, frameworks and implementation initiatives in line with university-industry linkage system are proposed.