This book presents a system dynamics model with spiral loops for studying know-how transfer by multinational corporations to developing countries. The model conceptualizes the interplay of the subsidiary's absorptive capacity with technology-leveraging and technology-seeking behaviors in the knowledge transfer process, and highlights the significance of spirals in engendering nonlinearities and feedbacks. It provides insights into the unique features of the knowledge transfer process and the mechanisms underlying successful and unsuccessful outcomes, and enhances the understanding of the conditions necessary for implementing effective knowledge transfer programs in developing countries. This work has been selected by scholars as being culturally important, and is part of the knowledge base of civilization as we know it. This work is in the "public domain in the United States of America, and possibly other nations. Within the United States, you may freely copy and distribute this work, as no entity (individual or corporate) has a copyright on the body of the work. Scholars believe, and we concur, that this work is important enough to be preserved, reproduced, and made generally available to the public. We appreciate your support of the preservation process, and thank you for being an important part of keeping this knowledge alive and relevant.