• Developing countries which are technologically backwards, need to acquire appropriate technology from developed countries to ensure faster industrial growth and /or improve productive efficiency.
• The scientists or engineer who innovates new technology does not generally have the entrepreneurial expertise to the first mover.
• Transfer of technology is also promoted by competitive market condition and the fast pace of technological change.
• Since a commercially successfull technology has already proved is utility, the buyer find it very attractive to buy the technology.
• Inadequacy of resource at the dispoal of innovator and lack of necessary capabilities on their part ofter required technology to be transfered to business firms for commercial use.
