The purpose of this paper is to explore the feasibility of technology transfer in a duopoly framework, where firms are severely constrained by the availability of finance or credit. The paper posits that a stringent financial constraint is likely to facilitate inter-firm technology transfers, and then proposes, if technologies are close such transfer is unlikely to take place contrary to the usual result in the conventional literature without financial considerations. The paper is novel in two respects; First, it provides a framework where financial constraints are explicitly introduced in the duopoly model and Second, it generates a result which is in contrast with one of the primary results in the literature and the mechanism behind the outcome may crucially depend on both finance and technology in an interesting way.