A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering, School of Engineering and Technology

Thesis (M.Eng.) - Asian Institute of Technology, 1990

The purpose of this study is to apply the Analytic Hierarchy Process (AHP) to technological choice particularly in the Korean Machinery Industry. A model is developed which considers the evaluation of various combined factors depending on the level. National-goal-oriented factors such as import substitution, export, employment, productivity, technology self-reliance and untapped growth potentials are influenced by sectoral development. On the other hand, factors such as technology and marl<et need, adaptability, linkage effect, technology acquisition and technology leadership are evaluated for the technological choice priorities. Data were collected from 39 experts coming from both Korean public and private sectors through a structured questionnaire via individual interviews supplemented by group discussion. Arithmetic mean (average) method is employed to make a consensus from group opinions on the importance ratio of criteria and factors. The findings are presented including both the relative importance (weight) and ranlcing of each alternative, considering both public and private sectors. Both groups indicate that the machine tools industry is the most important sector in the sector development model, while in the choice of technological model, design and engineering technology ls the most important. The sensitivity analysis examines about criteria and various consensus methods. It is shown that the analysis can provided useful guidelines for industrial policy planning in developing countries.