Development of a measure for technological capability in small firms

Acquisition of technological capability is believed to improve competitiveness of small firms in developing countries. Empirical investigations on the issues pertaining to the acquisition of technological capability have been mainly hindered by the lack of proper measurement methodologies and is an important problem that has not been adequately addressed in the literature. This paper outlines a methodology that uses quantitative measurement, validation and analytical tools for measuring technological capability and provides a useful means for testing the relationships between technological capability and the various technological learning mechanisms.