The Role of Technology License Agreements in the Transfer and Domestication of Foreign Technologies in Nigeria

Abstract

This paper is a comparative analysis between the capital importation coming into the country through Foreign Direct Investments (FDIs) and the remittances made by local companies abroad, for the payment of technology license fees under technology transfer agreements.  The study uses data obtained from the central bank of Nigeria’s annual bulletin and the data of technology remittances from the quarterly releases of the National Office for Technology Acquisition and Promotion (NOTAP) for the years 1999-2014.  The major aim of the analysis is to determine the benefit of FDIs to the Nigerian economy in comparison with the remittances made by the local companies.  The study also conducted a technology transfer analysis using the technology transfer agreements to determine the possibility of technology transfer process.  The findings of the investigations show that when compared with technology remittances FDIs have a win-win benefit to the Nigeria economy.  However, on the issue of technology transfer, the investigation reveals that technology transfer agreements are not playing the major role in the transfer and absorption of technological knowledge to the recipient local companies.

Keywords: Technology transfer, FDIs, remittances, technology license agreements