| The competitive bidding approach is the prevailing means by which contractors are selected to construct public projects in developing countries, and the transfer of technology is often included as part of implementation of a given project. Accordingly, the transfer of technology is ultimately the by-product, and frequently a low priority by-product, of a competitive bidding approach. Prequalification requirements are intended primarily to disqualify or qualify the contractors, who will be allowed to bid on a particular project, but they also regulate the forms of the collaborations in which the contractors interact. However, these same contractors are eventually the suppliers and receivers of the technology that is transferred and the prevailing contractual relationships undoubtedly influence greatly the results of the transfer. Notwithstanding this situation, little attention has been directed toward the potential effect of the prequalification requirements on the bid price level, the collaborating relationships, and the consequent outcome of technology transfer in terms of costs and knowledge transferred. In this study, it was found that an improper design of the prequalification requirements seriously affected the outcome of the technology transfer and resulted in high costs and a low level of transferred expertise.;Based on an analysis of data from thirty projects associated with the construction of the Taipei Mass Rapid Transit System, together with information gleaned from numerous interviews with contractors, consultants, and clients, it is determined that (a) international contractors tend to favor equity joint ventures and obtain managerial control by owning majority ownership, (b) high prequalification requirements are associated with high bid price and a high price of technology, (c) the price level of joint venture projects is higher than that of technical collaboration projects, and (d) the extent of the knowledge and expertise transferred is strongly associated with managerial control. The delivery of a quality product cannot be sacrificed for a high level of technology transfer, but it is likewise unsatisfactory to obtain a quality product with a low level of technology transfer; the goal must be to achieve high levels of performance in both areas. The results of this study suggest that the attainment of this goal would be enhanced by the government taking a risk-taking attitude in the development of a carefully designed set of prequalification requirements that gives due consideration to the prevailing environment. |
