Abstract: This study explores the transfer of computer technology in the U.S.-Yugoslav joint venture. As an example of a unique form of economic cooperation between socialist enterprises and West corporations, Ei-Honeywell was founded in 1978. The joint venture included Honeywell and two Yugoslav entities, the Electronic Industry in Niš and Progres from Belgrade, with a focus on manufacturing computers and related peripherals. Through the analysis of factory publications, archival documents, and interviews, the research highlights that, while the venture spurred domestic innovation, the Yugoslav enterprise was not able to achieve full autonomous production without relying on Honeywell’s licensing. Ultimately, this joint venture demonstrates another layer of U.S.-Yugoslav economic relations, illustrating efforts to enhance commercial cooperation between the two countries throughout the Cold War era.
Keywords: technology transfer, computers, joint ventures, socialist Yugoslavia, United States of America, Cold War
Summary
According to the suggested stages of technology transfer, the decision to form the Ei-Honeywell joint venture in 1978 initiated a collaborative learning process at both managerial and technical levels. This led to the successful acquisition and application of licensed technology, evident in the production of computers and peripheral devices for Yugoslav institutions. However, the domestic production of complex computer components—a key goal for the Yugoslav partner—was never fully achieved. While there were notable innovations initiated by individuals, particularly in software development, these achievements were primarily limited to local users. The broader diffusion of these innovations remained limited, reflecting the importance of the contextual dimension of technology transfer, as Beaty has emphasized. Despite Yugoslavia’s early successes in computing, such as the production of the CER digital electronic computer, the country remained unable to overcome institutional challenges and economic limitations, particularly in the 1980s, at the time of the economic crisis when issues with imported materials occurred. Besides the perspective that highlights the Ei-Honeywell as a framework for the technology transfer process, this joint venture was significant in terms of broader U.S.-Yugoslav relations. From this perspective, the Ei-Honeywell was important in reinforcing bilateral economic ties, particularly following the cessation of the Dow Chemical investment in Yugoslavia. Moreover, this case study offers insights into the dynamics and complexities of broader transnational economic collaborations during the Cold War.