The socio-economic impact of transferring a photovoltaic module manufacturing facility was analysed based on a detailed cost analysis and input/output methodology. We assumed to operate a technology transfer of 5 MWp/yr modules manufacturing facility to Morocco. In this case, the value of induced production amounted to Euro 22.3 million, 1.4 times the total cost and the induced employees was 489 man-years, more than 5 times the required employees at the facility. If cells were produced locally, an induced production coefficient of 3.5 would result and 2570 jobs would be created. (C) 2002 Elsevier Science B.V. All rights reserved.