Technology capacity at both the inception/assessment and replication stages of the technology transfer process have to be underpinned by RTD. Central to this process are national systems of innovations and international cooperation between research institutions (public) and private sector entities in research and technology development. Innovation and technology development are the result of a complex set of relationships among actors in the system, which includes private-public enterprises, universities and government research institutions (OECD, 1997). The national systems of innovations are well developed in OECD countries compared to developing countries. Furthermore, there is more international cooperative research among OECD countries and the EU countries (see OECD, 1997; Guy, 1997).
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