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Extra resources for Communication Economics and Development
J . , 1962. " In National Bureau of Economic Research, The Rate and Direction of Inventive Activity: Economic and Social Factors. Princeton, N . J . : Princeton University P r e s s . Cooper, C. " Mimeographed. Cooper, C. , 1970. Instrument I n d u s t r y in India, Bombay: Furtado, C , 1964. Development and Underdevelopment. Berkeley: University of California P r e s s . Hagen, E . E . , 1964. On the Theory of Social Change. don: Tavistock Publications. Lon- Hampshire, S. , 1971. The Observer Review, 31 October.
In a private enterprise system, the large multinational firm has an enormous advantage in reducing the r i s k s attached to r e s e a r c h (Arrow, 1962, p p . 609-26). A fifth and even more fundamental difference lies in the absence of the justification of the common assumption abut the "informed" b u y e r . Where technology is bought and sold, as it often i s , t h r o u g h the p u r c h a s e of an asset (or t h r o u g h admitting direct private foreign investment), the underdeveloped COMMUNICATION AND SUITABILITY GAPS 29 recipient country as "buyer" of the technology i s , in the n a t u r e of t h i n g s , v e r y imperfectly informed about many feat u r e s of the product that it b u y s .
The communications gap can be narrowed by improving communications, compiling catalogues, establishing clearing b a n k s , easing or rejecting patent laws, facilitating licensing, encouraging training of engineers abroad, or changing the balance of bargaining power, as well as by b e t t e r scientific and technological education and t r a i n i n g . But the more and the b e t t e r advanced technology is communicated, t h e less likely it is that a new and more appropriate indigenous technology will be developed.