Technological transfer in Spain during the first third of the 2oth century: The role of the investment good industry

Abstract

This paper analyzes the elements that contributed to technological transfer and diffusion in the Spanish industry during the first third of the 20lh century, a period in which significant changes in its productive structure began, with important consequences for the advance of industrialization.

We emphasize, in the crucial process of renewal of the investment goods, not only the relevance of imports but also of the national production. The participation of foreign enterprises was substantial through the establishment of affiliated companies owned together with the national producers. The induced effects were the following: new technological knowledge and applications approached the Spanish industry; investment associated to quality, price, and post-sale service of those goods was stimulated; human capital formation and the demand of industrial intermediate products was fostered. In short, conditions to absorb the new technologies were provided.