Borrowing of technology

“Borrowing of technology” is understood as the borrowing of scientific and technical achievements from the advance countries by the following countries to help the following countries leveling of the gap and catch up the level of development, even is beyond the countries went ahead. In the world, countries like the U.S., former Soviet Union, Japan and some East Asian countries like Korea, Taiwan had been referred to as successful examples in the application of borrowing technology forms (such as reserve engineering, copying, or buying a license) to the successful implementation of modernization or industrialization in each country. In the advantages of borrowing of the technology, we can see as follows:

First, we can see that borrowing of technology can make latecomer countries quickly get new technologies and by the form of "reverse engineering" or "copying", latecomer countries can further research in order to put the technology to reach to new heights, making the technology became their own, to serve the goals beyond from other countries. We can take a few examples from Tunzelmannn's book:

- In case of the United States: the United States was the technology borrower such as steam, electricity, steel technology from Britain and other European countries. After that, the United States had succeeded in attracting scientific human resource from the flow of immigrants as well as strongly investment in research and application of "reverse engineering", to develop borrowed technology and turning them into "special of America”. Then with their achievements, the United States has become the industrial powers in the world in the early 20th century.

- In case of the Soviet Union: after conducting five-year plans, the Soviet Union accomplished industrialization. After the end of World War II, the Soviet Union was quick to use the technology obtained from Western allies before and the scientific achievements derive from Germany to go ahead and become a superpower. A typical example (from a lecture on “the History of Science” of Mr.Gustav) that after getting the technology of manufacturing V2 missiles from Germany, the Soviet Union had successfully in applying this technology to create the missiles can launch satellites in to orbit (Sputnik), opening the development of the universe industry.

Second, borrowing of technology has also helped to latecomer countries (with a backward level) can save costs and avoid risks in research so that make them can quickly catch up with the advanced technology of the world, to shorten the time of industrialization compared with the previous industrialization countries:

- Tunzelmann's book mentions that Japan has used "reverse engineering" method and "catch up" (as in the straight on the electrification and skip the conversion of energy sources such as steam power) to reach  the development level of the U.S. and other western countries, creating a "miracle growth" in the period 1950 to 1980.

- Following Japan, East Asian countries such as Korea and Taiwan those were with the backward starting point have chosen policies to attract FDI and through that to study technology from developed countries. Besides, by buying foreign license to deploy new technology in their countries, those countries have also speed up the process of industrialization and nowadays Korea and Taiwan are classified as newly industrialized countries (NICs)

However, borrowing of technology also has the disadvantage. Countries have no appropriate borrowing of technology policy will easily encounter the following problems:

- The cost of importing foreign technology when purchasing a license to be allowed to deploy the technology (in case of Taiwan that had to import more and more - Tunzelmann's book)

- The borrowed technology may not consistent with the borrowing country (because the technology had formed through R & D processes in the origin country of the technology).  Thus, the borrowing country could get risks such as not deploying the technology or technological factors require that the borrowing country was not available (for the import of Japanese textiles technology - Tunzelmann's book)

- Dependence on foreign technology and does not promote scientific research capacity in the country.

Conclusion

Borrowing of technology is necessary for latecomer countries in development, to catch up with developed countries in the world. I think the technology borrowing countries (especially the developing countries like Vietnam) should have a right policy, to one side catch up with the development level of the world, and other side to become autonomy and creativity in science and technology activities. That can help the technology borrowing countries to shorten the time of industrialization and modernization period.