International Technology Transfer to Bulgaria after its European Union Accession

Abstract

The international flow of systematic knowledge and its successful utilization and absorption into domestic production and management processes are a key determinant for the ability of catching-up economies to compete in the global market and to narrow the technological gaps with developed economies. One of the most important dynamic effects of regional economic integration is the enhanced possibility of international technology transfer among participating countries. The European integration provides such an opportunity for the technological laggard Bulgaria. The objective of the paper is to provide an analysis of market-mediated international transfer of technology to Bulgaria after its European Union accession through the following major channels: foreign trade, foreign direct investment, licensing. The results show that the process of technological catchingup is not an automatic one and Bulgaria does not leverage its EU membership sufficiently to embark on a sustainable path of technological upgrading.