This paper presents an in-depth case study of technology transfer to an Indian manufacturing firm in the tractor industry and highlights the complexities involved as a result of the interaction of a number of factors both external to the firm as well as internal to it. The total process of technology assimilation is conceptualised as consisting of three sub-processes; a) technology adaptation; b) technology utilization and c) technology development, which are characterized by differences in the organization's goals and actions taken by management taken during each state. Based on the case study and other relevant research the authors draw some implications for policy at the national level.