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The Structure of Payments in Technology Transfer Contracts: Evidence from Spain

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  • Pedro Mendi

Abstract

This paper studies the impact of contract duration in determining scheduled payments in international transfers of technology. Analyzing a sample of contracts written by Spanish firms in 1991, the main empirical finding is a positive relationship between contract duration and the probability of the parties including variable payments in the first period of the agreement. This result suggests that the parties choose the type of payments to be made, whether fixed or variable, so as to avoid early termination of the relationship, even in the absence of opportunistic behavior or risk aversion. Copyright Blackwell Publishing 2005.

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Article provided by Wiley Blackwell in its journal Journal of Economics & Management Strategy.

Volume (Year): 14 (2005)
Issue (Month): 2 (06)
Pages: 403-429

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Handle: RePEc:bla:jemstr:v:14:y:2005:i:2:p:403-429

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Citations

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Cited by:
  1. Mendi, Pedro, 2007. "Trade in disembodied technology and total factor productivity in OECD countries," Research Policy, Elsevier, vol. 36(1), pages 121-133, February.
  2. Andrea Pierce & Debapriya Sen, 2014. "Outsourcing versus technology transfer: Hotelling meets Stackelberg," Journal of Economics, Springer, vol. 111(3), pages 263-287, April.
  3. Krammer, Sorin, 2013. "Assessing the relative importance of multiple channels for embodied and disembodied technological spillovers," MPRA Paper 53676, University Library of Munich, Germany.
  4. Pedro Mendi, 2007. "Contractual implications of international trade in tacit knowledge," Applied Economics, Taylor & Francis Journals, vol. 39(9), pages 1173-1183.
  5. Pierce, Andrea & Sen, Debapriya, 2009. "Outsourcing versus technology transfer: Hotelling meets Stackelberg," MPRA Paper 15673, University Library of Munich, Germany.
  6. repec:spo:wpecon:info:hdl:2441/eu4vqp9ompqllr09iatrn4log is not listed on IDEAS
  7. Allain, Marie-Laure & Henry, Emeric & Kyle, Margaret K, 2011. "Inefficiencies in technology transfer: theory and empirics," CEPR Discussion Papers 8206, C.E.P.R. Discussion Papers.
  8. Marie-Laure Allain & Emeric Henry & Margaret Kyle, 2011. "Inefficiencies in the sale of ideas: theory and empirics," Working Papers hal-00639128, HAL.
  9. Stamatopoulos, Giorgos & Tauman, Yair, 2008. "Licensing of a quality-improving innovation," Mathematical Social Sciences, Elsevier, vol. 56(3), pages 410-438, November.
  10. Francisco Caballero-sanz & Rafael Moner-colonques & Jose Sempere-monerris, 2005. "Licensing policies for a new product," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(8), pages 697-713.
  11. Mendi, Pedro, 2005. "Contracting for the transfer of technology within multinational corporations: Empirical evidence from Spain," IESE Research Papers D/607, IESE Business School.
  12. BHATTACHARYA, Sudipto & D’ASPREMONT, Claude & GURIEV, Sergei & SEN, Debapriya, 2012. "Cooperation in R&D: patenting, licensing and contracting," CORE Discussion Papers 2012055, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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