TECHNOLOGICAL FORECASTING AND SOCIAL CHANGE 19, 81-98 (1981) Technological Choice in the Less Developed Countries: An Analytic Hierarchy Approach VASUDEVAN RAMANUJAM and THOMAS L. SAATY ABSTRACT A novel and practical approach is proposed for the assessment and selection of imported technology by the less developed countries. Technological choice is conceptualized as a multiobjective, multicriterion problem wherein subjective judgments and political processes play key roles. A new planning and evaluation technique known as the analytic hierarchy process (AHP) is introduced as a potent methodology for dealing with the economic, social, and political realities confronting technological change in the less developed countries. Introduction It is widely held that the economic situation of the less developed countries (LDCs) can be greatly improved by conscious and judicious application of science and technology to the solution of their many problems. This belief is well supported by evidence attribut- ing the rapid economic growth achieved by the industrially advanced countries to the technology factor [3, 17]. Early economic theorists noted that the level of savings and investment in the LDCs was low and recommended transfusion of capital to spur invest- ment and capital formation, but beginning with the late 1950s the emphasis shifted to the transfusion of technology rather than capital. However, the collective experience of the LDCs over the past three decades with imported technology has been far from encourag- ing, as is apparent from the growing discontent voiced by the "group of 77." A substantial literature exists that attempts to grapple with the problem of transferring technology effectively to the LDCs [e.g., 5, I0, 16, 18]. This literature represents a significant part of the scholarly output in the broader area of technology transfer and technological innovation. We shall make no attempt here to survey the literature on technology transfer in general, or even technology transfers of the international kind in particular, but merely note that the problem has been approached from a number of different perspectives, with contributions from economists, sociologists, anthropologists, political scientists, and technical professionals. Some are concerned with the "how to" of technology transfer, that is, with the mechanisms and methods of transfer, some describe the process of technology transfer and diffusion, while yet others critically assess the consequences of transferring advanced technology to less developed countries and appear VASUDEVAN RAMANUJAM is currently pursuing doctoral studies at the University of Pittsburgh. His research interests include planning and policy making at both micro and macro levels, futurism, technological innovation and change, and information systems for planning. THOMAS L. SAATY is University Professor at the University of Pittsburgh in the Graduate School of Business and in other schools. He has acted as a consultant to both business and government and is the author of over 150 research articles and books in pure and applied mathematics, operations research, and systems theory. He is currently interested in applying the analytic hierarchy approach to planning, resource allocation and conflict resolution. © Elsevier North Holland, Inc., 1981 0040-1625/81/0200811852.50