Technology transfer is the act of conveying productor process-related “industrial” knowledge from one organization or sub-unit to another. It requires a series of activities and leads to learning by the recipient organization. Transfer is often costly in terms of financial and other resources. The cost is likely to be higher when the knowledge involved is more tacit than codified, where the kno...

Recent evidence shows that the returns to labor and the skill premium both increase in developing countries after trade liberalization, despite the low skill content of their exports. The author explains this apparent puzzle by arguing that trade increases technology transfers from industrial to developing countries and that the transfer technology is biased in favor of skilled labor. The relat...