There are many failures of technology transfer that result from an absence of human and institutional capacity. For example, inappropriate choice of technology can result from missing capabilities for searching, selecting and negotiating. Joint ventures may not produce long-term learning or absorption of technology or development of competence if capabilities for learning and integrating are missing. Missing implementation capabilities may result in unsuccessful employment of purchased technologies and unforeseen problems.
Capacity is needed to assess, select, import, develop and adapt appropriate technologies.
But the need for enhanced skills and capabilities can also occur in the areas of technology selection, financing, marketing, maintenance, service, information dissemination, utility regulation, policy development, technology transfer, market intermediation, tax policies, macroeconomic policies, and property rights.