The transfer of technology only takes place in the form of consumable products. This means the economic benefits of technology transfers to developing nations are largely absent.
The traditional model of technological development and industrialization dictated that technology became available once the domestic industrial sectors had developed the know-how, manufacturing capabilities, and a thriving domestic market. Once all three of these were established, the industrial sector would develop the technology and reap the economic rewards that came with it in the form of increased output and higher economic growth.
Globalization has handed developing countries the technology without any of the economic advantages that come with it. Because the developing nation hasn’t developed it themselves through the establishment of improved manufacturing capabilities and a domestic demand for the technological product, it has no way of leveraging the technology to generate economic growth and development.
Technological acquisition in this manner is also highly unequal. In developing nations, only the wealthy, urban populations can generally afford to purchase the new technologies, excluding vast swathes of the rural population from its benefits and fueling inequality.