There is a consensus among scholars supporting the notion that firms that receive technology transfer need a certain level of technological capability to transfer technology effectively from external sources. However, technology capability has many different dimensions and is difficult to measure. Thus there is no complete set of indicators that can measure the degree of technology capability in the existing literature. This research adopted Sharif and Ramanathan and Autio and Laamanen's viewpoint and synthesised perspectives from different scholars, confirmed by industry experts. Through the use of panel discussions and analytic hierarchy process technique the author develops a questionnaire to measure the technology capability of individual firms. To test the validity of this questionnaire, the author compares the experts' ranking and questionnaire survey results. The result shows that they are not significantly different. There is therefore evidence to suggest that the questionnaire is valid in measuring a firm's technology capability.
