Evaluating the Performance of Technology Transfer in the ICT Sector of Ethiopia

Many developing countries like Ethiopia are investing in various technologies, in their continuing effort to break out of structural failures and underdevelopment. Along with their investment they are striving to bring excellence in technology transfer and innovation. Technology transfer continues to be the center of science, technology and innovation policies and strategies. However, at times even with considerable amount of investment, the aspired element of knowledge and technology transfer might not come along with projects. Hence, countries need to constantly assess the level of increase in technological capability Technological capability is the capacity to identify technological options on the market, assess their value, select the specific technology needed, use it, adapt and improve it and finally develop technologies. It encompasses the skill possessed both by direct producers and decision-makers. Technological capabilities are grouped into their separate but interrelated capabilities: production (operating productive facilities); investment (expanding capacity and establishing new productive facilities); and innovation (developing technologies).(MoST, 2012) across different sectors following their intensive investment. Bearing in mind the pervasive nature of the information communication technology (ICT) sector and the foundational role it has on transforming economy, this paper made an effort to evaluate the performance of the ICT sector in Ethiopia in terms of identifying, accusing adopting, utilizing, assimilating and diffusing technologies by using the Broader Information Technology Transfer Lifecycle approach developed by Baark and Heeks (1999). The finding of the study revealed that the technological capability of the ICT sector is mostly limited to the first three phases of the information technology transfer life cycle. The first three stages are identification of the technology, purchasing and negotiation and implementation of the technology. These three phases mostly resemble level one and level two technological capabilities, which includes the capacity to use and select a technology, the ability to train others to use the technology and the capacity to install and troubleshoot the technology. Some organizations (mostly private firms) managed to extend up to phases four. Such firms had technological capacity reaching up to level three (modifying the finished product) and level four (copying and assembling the technology). In general government projects (public sector) have less contribution to technology transfer as they are mostly on turnkey bases. The findings of the study have showed that private sector has promising capacity in areas related to software, highlighting a better capacity of technology transfer if managed properly. The study suggested that leadership and capacity building can play a fundamental role on boosting the ICT sector’s technological capacity. In telecommunication aspects, the study highlighted the importance of encouraging the establishment of local private firms operating in the area and boosting their capacity prior to deregulating the sector. In ICT service and equipment aspect, the study underlines the need for selecting firms with entrepreneurial spirit and making an intensive investment on them (R&D activities, financial and technical support) to create competent private sector.