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Government Intervention in Technology Transfer

Author

Listed:
  • Prabal Roy Choudhary

    (CSDILE, School of International Studies (SIS), Jawaharlal Nehru University (JNU), New Delhi-110067, India)

Abstract

We examine the efficacy of government intervention in technology import from a foreign firm. If the foreign firm can impose relicencing restrictions, domestic surplus is higher under government intervention if, as a consequence, the number of domestic firms adopting the technology increases. If, however, the number of adopting firms decreases due to government intervention, the domestic surplus may decline. In either case the payoff of the foreign firm is lower under government intervention. This, however, need not be true if the foreign firm cannot impose sublicensing restrictions on the domestic firms. In this case obviously government intervention makes less sense.

Suggested Citation

  • Prabal Roy Choudhary, 2002. "Government Intervention in Technology Transfer," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 37(1), pages 1-22, January.
    • Handle: RePEc:dse:indecr:v:37:y:2002:i:1:p:1-22
    as

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    More about this item

    Keywords

    Technology transfer; Government Intervention; Relicensing restrictions;
    All these keywords.

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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