Building absorptive capacity in less developed countries The case of Tanzania
African countries lag clearly behind developed countries when it comes to accumulating technological capabilities, upgrading and catching up. Also, firms in least developed countries are characterised by very low levels of absorptive capacity. It is therefore crucial to understand how this capacity can be build so that the indigenous firms can benefit from external knowledge sources. Drawing on case study material, this paper investigates the role of intermediate organizations in facilitating technological knowledge transfer between the university and the indigenous SMEs, discussing how capabilities are built during such intermediation. Particularly, we discuss the role of NGOs facilitating the transfer of knowledge between universities and SMEs in Tanzania and the accumulation of new technological capabilities (absorptive capacity) in the latter.
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