EXCLUSIVE SAFEGUARDS AND TECHNOLOGY TRANSFER: Subcontracting Agreements in Eastern Europe’s Car Component Industry
AbstractWe study the rationale for the use of exclusivity to protect transfer of technology in subcontracting agreements. The legal possibility arises through the EU Notice on Subcontracting. Empirically, the link between exclusive agreements and technology transfer among firms in the automotive supply industry in EU candidate countries is surprisingly weak, although with exclusive-supply or exclusive-buying clauses in subcontracting agreements upstream transfer of technology is more likely. Exclusive agreements are often reciprocal, and are typically passed on. Downstream firms are more likely to face and use vertical restraints. Technology trickles upstream: Multinational final assemblers transfer more technology than lower-tier suppliers.
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Bibliographic InfoPaper provided by Copenhagen Business School, Department of Economics in its series Working Papers with number 10-2002.
Length: 33 pages
Date of creation: 01 Aug 2002
Date of revision:
Contact details of provider:
Postal: Department of Economics, Copenhagen Business School, Solbjerg Plads 3 C, 5. sal, DK-2000 Frederiksberg, Denmark
Phone: 38 15 25 75
Fax: 38 15 34 99
Web page: http://www.cbs.dk/departments/econ/
More information through EDIRC
Transfer of technology; subcontracting; exclusive agreements; automotive supply industry; vertical restraints;
Other versions of this item:
- H. MÃ¸llgaard & Jochen Lorentzen, 2004. "Exclusive Safeguards and Technology Transfer: Subcontracting Agreements in Eastern Europe's Car Component Industry," European Journal of Law and Economics, Springer, vol. 17(1), pages 41-71, January.
- H. Peter Møllgaard & Jochen Lorentzen, 2002. "Exclusive Safeguards and Technology Transfer: Subcontracting Agreements in Eastern Europe's Car Component Industry," CIE Discussion Papers 2002-12, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- D40 - Microeconomics - - Market Structure and Pricing - - - General
- K12 - Law and Economics - - Basic Areas of Law - - - Contract Law
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
- L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-04-13 (All new papers)
- NEP-EEC-2003-04-13 (European Economics)
- NEP-LAW-2003-04-13 (Law & Economics)
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