Proceedings of 11th International Conference on Management of Technology PERCEPTIONS OF TECHNOLOGY POLICY IN DEVELOPING COUNTRIES: THE SOUTH AFRICAN CASE Ian Hipkin, University of Exeter, UK and David Bennett, Aston University, UK Abstract: Technology policy is a crucial component in strategic decision-making, which necessarily now focuses on global considerations. The extent to which firms in developing countries can enter global markets will depend on their ability to acquire and use new technology through the development of core technologies in the context of knowledge, competence and high-tech skills. Resource, financial and competency- based constraints restrict developing countries in the strategic selection of technologies. These limitations are emerging as serious barriers to technological development. Strategy and technology research have in the past tended to develop in parallel, and this paper explores the linkages between strategy and technology in a developing country context through an assessment of managers’ perceptions of strategic technology policies, with specific reference to South Africa. The study suggests that technology policy comprises more than choosing technology as a means for production, and now includes the control of a broader selection of technical and non-technical factors that link technology to strategy through a network of capabilities. An importance- control grid is used to present the perceptions of a sample of South African managers regarding technology polices. The importance of different factors in formulating technology policy is studied in relation to the extent to which managers are able to control these variables. Key words: technology strategy; managerial perceptions; developing countries; South Africa Introduction A substantial body of literature identifies significant factors in technology transfer (TT) to developing countries (DCs). A study by Hipkin and Bennett (2001) refers to aspects of the literature relating to cultural, political, and organisational and technological issues. Another area of research, to be addressed in this paper, considers policy decisions in a strategic context where technology is a significant factor in the defence, expansion and development of competencies and capabilities. Technological competencies embrace physical assets, non-physical knowledge, and require external know-how when capabilities, finance and time are constrained. This is a challenge to all firms, but even more so in developing countries (DCs), with their inadequate resources and limited technical expertise. Technology-based strategies require the conversion of knowledge into core competences if technological parity and competitive advantage are to be achieved. A recurring theme is first mover advantage where strategic decisions should