Journal of the Indonesian Mathematical Society has been acreditated by the General Directorate of Higher Education (DIKTI)

SK NO.:58/DIKTI/Kep/2013

### A DYNAMICAL SYSTEM APPROACH IN MODELING TECHNOLOGY TRANSFER

#### Abstract

In this paper we discuss a mathematical model of two parties technology transfer from a leader to a follower. The model is reconstructed via dynamical system approach from a known standard Raz and Assa model and we found some important conclusion which have not been discussed in the original model. The model assumes that in the absence of technology transfer from a leader to a follower, both the leader and the follower have a capability to grow independently with a known upper limit of the development. We obtain a rich mathematical structure of the steady state solution of the model. We discuss a special situation in which the upper limit of the technological development of the follower is higher than that of the leader, but the leader has started earlier than the follower in implementing the technology. In this case we show a paradox stating that the follower is unable to reach its original upper limit of the technological development could appear whenever the transfer rate is sufficiently high. We propose a new model to increase realism so that any technological transfer rate could only has a positive effect in accelerating the rate of growth of the follower in reaching its original upper limit of the development.

#### Keywords

#### References

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