Les Cahiers de Recherche - HEC Paris
No 793:
Knowledge Diffusion, Supplier's Technological Effort and Technology Transfer via Vertical Relationships
Ai-Ting GOH ()
Abstract: This paper studies the effect of knowledge diffusion on
the incentives for developed countries(DC)' firms to undertake costly
technology transfer to their developing countries(LDC)' suppliers whose
cost of production varies inversely with their technological effort. When
the incumbent supplier's cost of improving efficiency is high, upstream
(or, respectively, downstream) diffusion of knowledge to potential input
(final output) producers encourages (discourages) technology transfer as it
increases upstream (downstream) competition. However, and in sharp contrast
to existing literature, when technological effort is less costly, upstream
(downstream) knowledge diffusion discourages (encourages) technology
transfer by reducing (increasing) the incumbent supplier's technological
effort.
Keywords: technology transfer; technological effort; developing countries; knowledge diffusion; buyer-supplier; (follow links to similar papers)
JEL-Codes: F23; L13; O14; O19; O32; O33; (follow links to similar papers)
44 pages, December 1, 2004
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