It was extremely observed wherein the acquisition of the knowledge takes place from the sources that are domestic that it can hold negative effect on the internal research and development. Similarly, it was viewed that the acquisition of the knowledge through foreign organizations is considered as effective in improvisation of the research and development along with the profitability of the organization. The reasons possible behind investment of organizations within the local knowledge are the basic cost involved within acquisition of the foreign technology or knowledge and the organizational inability in identification of the technologies that are frontier.
The viewpoint such as this is not accepted globally. A varied study conducted by Soette (2011) offers evidence that regardless of the potential delivered through regime of liberal trade and globalization, the advantages of the diffusion of international technology can be provided only with the parallel efforts of indigenous innovation along with the presence of structures of governance and institutional being modern with the innovation system that is conducive.
One argument mentioned for this is that the technology of foreign origin remains technology of static nature within the form of equipment import and does not enable evolution in actual capability of indigenous technology if the indigenous innovation is not undertaken.
The model of triple helix is conceptual framework which defined the communication of organization, universities and the government. This model is regarded as a powerful tool within the regional development. The model of triple helix should be viewed as an instance that is extremely calibrated of open innovation for this paper’s purpose. This is justified through the symbiosis of creating knowledge among the organizations and universities. The governmental policies impact through the knowledge that is created also deems valid exchange of information inter entity.