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Staying in the Loop
註釋Firms in the Organization for Economic Cooperation and Development (OECD) countries have formed a large number of alliances to share technology. An analysis of these alliances provides theoretical insights into the growth of firms and the evolution of the product cycle. Additionally, it leads to a better understanding of the changing international technology market and the implications of these changes for developing countries. In technologically dynamic industries, open international standards provide a cheap source of technology. Developing country firms could also exploit mutually beneficial linkages to obtain technology by manufacturing products designed by industrial country firms. As the case studies in the paper indicate, however, such arrangements lead to genuine technology transfer only when the developing country firm has a strong absorptive capability. Moreover, firms in developed countries will not always be willing to enter into such arrangements if the transfer of technology creates potential competitors. This paper presents evidence showing that firms increasingly are holding on to critical process technologies. These process technologies are important not only for high technology products, but also for many mature products.