A significant shift in the basic philosophy of international technology tra
nsfer policy has taken place which has generated new policy concerns and is
sues in international technology transfer. We describe this change as a cha
nge from "contract bargaining" policy context towards "sourcing" policy con
text. Starting from the analysis of the underlying assumptions and effects
of international technology transfer policy from the 1960s/70s we briefly o
utline the major changes that have taken place in the world economy which m
ade the changes in international technology transfer policy unavoidable. We
analyse the main technology transfer issues created by globalized economy
within, as we call it, a "sourcing framework" and compare the main policy i
ssues in international technology transfer in the shift from "contract barg
aining" to a "sourcing" context. (C) 1999 Elsevier Science Ltd. All rights
reserved.