HEC Research Papers Series,
HEC Paris

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

JEL-codes: F23; L13; O14; O19; O32; O33

44 pages, December 1, 2004

Full text files

9d7b0adee0aa38df7549ec594308c567.pdf  

Download statistics

• HEC Paris
• Ordering Working Papers
• Home page for this series

Questions (including download problems) about the papers in this series should be directed to Antoine Haldemann ()
Report other problems with accessing this service to Sune Karlsson ().

RePEc:ebg:heccah:0793This page generated on 2024-09-13 22:19:52.