Abstract: Technology transfer is a common method for
companies to acquire new technology and presents both challenges
and substantial benefits. In some cases especially in developing
countries, the mere possession of technology does not guarantee a
competitive advantage if the appropriate infrastructure is not in place.
In this paper, we identify the localization factors needed to provide a
better understanding of the conditions necessary for localization in
order to benefit from future technology developments. Our
theoretical and empirical analyses allow us to identify several factors
in the technology transfer process that affect localization and provide
leverage in enhancing capabilities and absorptive capacity.The
impact factors are categorized within different groups of government,
firms, institutes and market, and are verified through the empirical
survey of a technology transfer experience. Moreover, statistical
analysis has allowed a deeper understanding of the importance of
each factor and has enabled each group to prioritize their
organizational policies to effectively localize their technology.