Technological capability and development1991

It aims in analyzing if technological capability (TC) is a sufficient condition and/or a necessary condition for economic development. It does so by using a unique database on technology exports to the Middle East from i.a. India and South Korea. Technology exports are divided into high and low technology and into hardware and software (such as technology know-how). Two findings emerge: 1. TC is neither sufficient nor necessary for economic development (in the case of India and South Korea). 2. There is a correlation between nationality of exports of consultancy services (pre-feasability studies, feasability studies) and the subsequent export of hardware (such as projects). The implication of this is that it is important for a country to win the consultancy contracts since this is more likely to reward other suppliers in that same country, than if the consultancy services were supplied by another country.