How does technology transfer evolve in rural regions? Transferors, recipients, and the role of absorptive capacity in developing economies

Technology transfer can be a key mechanism used to decrease rural poverty in developing economies by enabling local production of consumable and saleable products. However, the literature tends to deal with the technology transfer process as unidirectional, largely ignoring the on-going changes in goals, knowledge, and skills among transfer recipients and transferors. This paper addresses how technology transfer evolves over time in rural communities by drawing on in-depth data from two longitudinal cases of technology transfer in Cauca, Colombia. We develop a five-phase model of technology transfer that explains how and why changes in the absorptive capacity of the actors affect technology transfer over time. The model explains how technology transfer in two rural communities developed from the initiation phase, where projects are near failure, to their emergence in a local ecosystem, and over time to the institutionalization of self-sustaining and sustainable local production in a local ecosystem. For technology transfer processes to succeed, actors in rural communities need to develop their absorptive capacity. The technology transferors need to understand and adapt to changes in the recipients’ social, economic, and environmental needs and context. The paper contributes to the literature by showing that the goals, setup, and capabilities for technology transfer change over time, for both transferors and recipients, and that technology transfer projects can lead to the formation of local ecosystems. We propose that the model is transferable to settings characterized by strong, local cultures unlike those in mainstream cultures. • Evolution of technology transfer in rural regions in developing economies. • Absorptive capacity explains technology transfer changes. • Focus on the absorptive capacity of both transferors and recipients. • Sustainability is a major mechanism for change of phases. • A five-stage phase model shifting from technology via market to a system emergence.