In support of their industrialisation efforts developing countries are offering a number of incentives to investors in order to compensate the latter for shortcomings and handicaps resulting from the countries' development status. Do these incentives serve their purpose?

Industrial technologies are both an outcome of the industrialization process and one of its main driving forces. The introduction of new technologies can be seen as one of several important factors which directly and indirectly change the context and modes of international industrial production,...