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Managerial incentives for technology transfer

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  • Derek Clark
  • Anita Michalsen

Abstract

This paper studies how a separation of ownership and management affects a firm's incentives to transfer knowledge about technology voluntarily and without payment to a rival in a Cournot duopoly. We consider a three-stage strategic delegation game, where two technologies are available; one with increasing returns to scale and the other with constant returns to scale. While the former is known to both firms, only the more advanced firm initially has access to the latter type of technology. This firm is assumed to be managerial, not only with respect to product market decisions, but also regarding the choice of whether or not to transfer technology to the rival firm. We consider the scope for, and limitations of, the use of strategic management and compare the results with those from traditional models that do not involve technology transfer and models that involve technology transfer, and no strategic management. The resulting technology choices are examined for their welfare implications, and finally we consider the transfer of technology when both firms are managerial.

Suggested Citation

  • Derek Clark & Anita Michalsen, 2010. "Managerial incentives for technology transfer," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 19(7), pages 649-668.
    • Handle: RePEc:taf:ecinnt:v:19:y:2010:i:7:p:649-668
    DOI: 10.1080/10438590903128974
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    References listed on IDEAS

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    1. Magnus Blomström & Ari Kokko & Mario Zejan, 2000. "Multinational Corporations and Spillovers," Palgrave Macmillan Books, in: Foreign Direct Investment, chapter 8, pages 101-133, Palgrave Macmillan.
    2. Stephane Lhuillery, 2006. "Voluntary technological disclosure as an efficient knowledge management device: An empirical study," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 465-491.
    3. Jansen, Thijs & van Lier, Arie & van Witteloostuijn, Arjen, 2007. "A note on strategic delegation: The market share case," International Journal of Industrial Organization, Elsevier, vol. 25(3), pages 531-539, June.
    4. Steven D. Sklivas, 1987. "The Strategic Choice of Managerial Incentives," RAND Journal of Economics, The RAND Corporation, vol. 18(3), pages 452-458, Autumn.
    5. Blomstrom, Magnus & Kokko, Ari, 1998. "Multinational Corporations and Spillovers," Journal of Economic Surveys, Wiley Blackwell, vol. 12(3), pages 247-277, July.
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    Cited by:

    1. Luciano Fanti & Marcella Scrimitore, 2017. "Hiring a manager or not? When asymmetric equilibria arise under outsourcing to a rival," Discussion Papers 2017/220, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.

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