The systematic capacity for technological absorption (SCTA) and international technology transfer (ITT): how some Korean firms successfully exploit Russian technology

This thesis examines issues of international technology transfer (ITT), focusing on the exploitation of foreign technology between countries with contrasting strengths and capabilities. The tendency in ITT is that it has mostly been limited to the triad countries and to some latecomer economies in East Asia. An explanation for this tendency is that the extent of this shared common ground between countries directly affects a recipient country’s capability to exploit and absorb foreign knowledge. This thesis examines cases of ITT which successfully occurred without such common grounds and offers explanations for specific cases. The conceptual framework was developed to explain how such extraordinary capabilities are created in order to overcome barriers to technological transfer. In addition, several other mechanisms and special factors are hypothesised as candidates for explaining the technology transfer process as one involving bridging and overcoming the barriers. These hypotheses are examined in relation to the Korean-Russian technology transfer, the main target of the investigation. Korea and Russia are countries that had no interaction prior to or during the Cold War period and shared little or no common ground. Nonetheless, after 1990 Korean firms have actively attempted to exploit Russian technology and some of them, though not many, have succeeded in exploiting and commercialising Russian technology. Important contextual issues for this examination are the military and mission-focused body of Russia’s technological knowledge and the often cheaper importation of Western technology. Taking these contextual issues into account, this thesis identifies two principal issues that were overcome in the cases of successful technology transfer: a) the tacitness of Russian technological knowledge and b) the locality of the Russian “context of origin” in terms of the socio-cultural, economic, and political environment. The empirical content of the thesis involves a mixed approach with document analysis, interviews, a survey, and case studies. The research results show that the public agency programme’s facilitating role as an intermediary (developed by the Korean government) creates the extra capacity to bridge the gaps involved in adapting Russian technology.