Abstract
This paper explains why and how a technology transfer revolution is taking place in Saudi Arabia to meet the mandate that Saudi Arabia become globally competitive as a knowledge-based innovative economy. The paper explains and identifies the new policies and institutions that have been introduced and developed to facilitate technology transfer and knowledge spillovers from the universities for commercialization and ultimately innovative activity and economic growth. The paper finds that a technology transfer revolution in Saudi Arabia is taking place, with the goal of leapfrogging from the factor-based stage of economic development to the innovation-based stage of economic development, while bypassing the intermediary efficiency-based stage of economic development.