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Constraints of Industrialization and Technology CONSTRAINTS OF INDUSTRIALIZATION AND TECHNOLOGY TRANSFER IN GHANA By Asuako, Enoch Larson A thesis submitted to the Department of Mechanical Engineering, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirement for the degree of MASTER OF SCIENCE Mechanical Engineering Department College of Engineering June, 2015 DECLARATION I hereby declare that this submission is my own work towards the award of the Master of Science (MSc.) degree and that to the best of my knowledge, it contains no material which has been accepted for the award of any other degree of the university or any other university, except where due acknowledgement has been made in the text. ………………………………… DATE………………. ASUAKO, ENOCH LARSON (CANDIATE PG5933811) Certified by: ...………………….………………… DATE………………… DR. S. M. SACKEY (Supervisor) ………………………………… DATE .....………………. EDEM DENIS K. DZEBRE (Second Supervisor) CERTIFICATION I certify that this thesis has been assessed and all corrections have been made in accordance with the comments made by the Supervisors. ...…………….………… DATE:……..……………… DR. GABRIEL TAKYI (Head of Department) ii ABSTRACT Industrialization and Technology Transfer (TT) are important for the socio-economic development of any country. Successful Technology Transfer (TT) was a key factor in the rapid industrialization of the newly industrialized economies (NIEs) of Asia. Ghana‟s inability to develop industrially is due in part, to the lack of effective technology transfer beneficial to the industrial sectors of its economy. The objective of this thesis was to identify constraints of industrialization and technology transfer in Ghana. The study made use of a combination of quantitative and qualitative methods and interviews in collecting data. The study reveals that, the lack of national priority areas for effective technology transfer, inadequate science and technology infrastructure, insufficient research and development (R&D) initiatives, under developed entrepreneurial skills, and inadequate R&D funding are collectively hindering successful transfer in Ghana. Furthermore, low technology adoption and diffusion in critical sectors of manufacturing industry among others are some of the constraints that the study found. iv DEDICATION I dedicate this thesis to my lovely wife SUSIE ASUAKO LARSON, and my adorable son JOSHUA ASUAKO LARSON. v ACKNOWLEDGEMENT I will like to express my sincerest gratitude first and foremost, to the almighty GOD who has blessed me with Solomonic wisdom and good health. I also wish to express my sincerest and most profound gratitude to Dr. S.M. Sackey, my supervisor, whose immense contribution has shaped this study. Also, to Mr. Edem Denis Dzebre, I thank him for his invaluable support, patience, encouragement, ideas and guidance. To all my friends and critics, I thank you for your unflinching support, advice, and encouragement. To Dr. Brigandi, Dr. Napoleon, Faisal Wahib Adam, Anthony Akayeti, WOII Milku, Bismark Boateng, Philip Yamba, Jacob Mensah, Samuel Boafo and especially to all whose names are not mentioned here. I humbly take responsibility of this study or if any shortcomings emanating from this research. ASUAKO, ENOCH LARSON JUNE, 2015 vi TABLE OF CONTENTS DECLARATION .......................................................................................................... ii ABSTRACT ................................................................................................................. iv DEDICATION ...............................................................................................................v ACKNOWLEDGEMENT ........................................................................................... vi TABLE OF CONTENTS ............................................................................................. ix LIST OF TABLES .........................................................................................................x LIST OF FIGURES ..................................................................................................... xi LIST OF ACRONYMS ............................................................................................. xiii CHAPTER ONE ............................................................................................................1 INTRODUCTION .........................................................................................................1 1.1 Background ..............................................................................................................1 1.2 Problem Statement ...................................................................................................2 1.3 Objectives of the study.............................................................................................3 1.3.1 Specific objectives ................................................................................................3 1.4 Methodology ............................................................................................................3 1.5 Significance of the Study .........................................................................................4 1.6 Organization of the Study ........................................................................................5 CHAPTER TWO ...........................................................................................................6 LITERATURE REVIEW ..............................................................................................6 2.1 Introduction ..............................................................................................................6 2.2 Definition of Industrialization and Technology Transfer and Brief Historical Perspectives .........................................................................................................6 2.2.1 Industrialization ....................................................................................................6 2.2.2 Technology Transfer (TT) ....................................................................................7 2.3 Ways in which Technology may be transferred ......................................................8 2.4 Industrialization and Technology Transfer in the Newly Industrialized Economies (NIEs). .................................................................................................................9 2.4.1 The Economic Agents of Development in the Newly Industrialized Economies (NIEs) ................................................................................................................12 2.4.2 The Workers........................................................................................................12 ix 2.4.3 The Government .................................................................................................12 2.4.4 The Entrepreneurs ...............................................................................................13 2.4.5 Challenges of the NIEs during their Formative Years ........................................13 2.5 Brief history of industrialization and technology transfer in Ghana ......................14 2.5.1 Technology Transfer in Ghana ...........................................................................15 CHAPTER THREE .....................................................................................................17 RESEARCH METHODOLOGY.................................................................................17 3.1 Introduction ............................................................................................................17 3.2 Research Design.....................................................................................................17 3.3 research strategy.....................................................................................................19 3.4 Target Institutions ..................................................................................................19 3.5 Sources of Information ..........................................................................................20 3.5.1 Primary Data .......................................................................................................20 3.5.2 Secondary Data ...................................................................................................20 3.6 Data Collection ......................................................................................................20 3.6.1 Questionnaire ......................................................................................................20 3.7 Data Analysis .........................................................................................................20 CHAPTER FOUR ........................................................................................................21 PRESENTATION OF FINDINGS AND DISCUSSION ............................................21 4.1 Introduction ............................................................................................................21 4.2 Industrial Growth in Ghana ...................................................................................21 4.3 Importation of Foreign Technology .......................................................................28 4.4 Foreign direct investment (FDI) in Ghana .............................................................29 4.5 Royalties ................................................................................................................29 4.6 Research and development
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