facilitating market mechani S m S

england and France, the two nations in which industrialization took place first, grew at a rate of 1.2-1.4% per annum, whereas Germany, Denmark, Switzerland and USA had a growth rate of 1.6-1.8%. These countries were fol- lowed by norway, Sweden and Japan with a growth rate of 2.1-2.8%. These historical evidences were further rein - Abstract The significance of technology trans- fer (TT) for economic development cannot be overemphasized. TT has two crucial components - appropri- ate acquisition of technology and its widespread diffusion. For productiv- ity growth, both these components need to be adequately addressed. The TT to developing countries in the past has not addressed few pertinent questions such as: a) their technology needs; b) the require- ments of appropriate technologies to meet those needs; c) the capacity building needed to ensure effective transfer; and d) the factors affecting adoption, assimilation, and adapta- tion of imported technology. Many of these issues become less unwieldy and get attenuated if technology is transferred from same environment as the recipient (e.g., South-to- South) rather than from north (devel- oped countries) to south countries. This paper discusses various market mechanisms and models of technol- ogy transfer that could be applied in a South-South mode of technology cooperation and transfer. The paper then discusses the challenges and opportunities for countries in the Asia-Pacific region.