IMPLICATIONS OF TECHNOLOGY TRANSFERS FOR THE USSR

Within the past hundred years of Russian history there have been two major periods of concentrated effort to acquire advanced foreign technology. The first of these was connected with the industrialization spurt in the 1890s. As a result of this foreign investment, not only was the capital stock of Russia greatly expanded, but also foreign technology was brought into Russia, both in the form of advanced capital equipment itself and in the form of human capital. Foreign technologists, experienced businessmen, managers and engineers came to Russia as foreign companies were set up within Russia. Direct foreign investment was thus responsible for the implantation of advanced techniques in several key industries. Moreover, the foreign firms competed with Russian firms inside Russia and forced the latter to be more efficient if they were to survive. (Author).