Absorption and Diffusion of Imported Technology in the Machinery Industry in Korea

Abstract

A case study on the absorption and diffusion of imported technology in Korea focusing on the machinery sector is presented here. Chosen because of its important role in enhancing industrial independence through increased domestic production of capital goods, the machinery sector in Korea has exhibited a considerably rapid rate of absorption of foreign techniques at their operation stage. Nevertheless, as for designing capabilities, they have still long way to go. The industry has, less surprisingly, achieved only a modest rate of diffusion of its specialized knowledge even to its inputs suppliers.