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Summary form only given. In this paper some of the policy issues in the transfer of technology to developing countries are examined. Technology transfer is considered within the context of production function by which the role of a given technology transfer policy in promoting the production of goods and services is discussed. It is argued that several factors influence the effective implementation of a given policy option. These include: (a) availability of materials may be are referred to as the hardware; (b) technical know-how and skilled work forces referred to as the software; and (c) the necessary organization in the which integration of capital and a skilled work force can take place. Other factors such as government policies and socio-cultural attitude towards learning and work habits of the recipient country may also significantly influence the implementation of a given technology transfer plan. As such, no single policy option can be considered to be an optimum policy to be applied in all of the developing countries.