Patent protection, imitation and the mode of technology transfer
AbstractThis paper analyzes a model in which a fir endowed with a new technology can choose between exports, licensing and direct investment as entry modes in a foreign market. I endogenize the vintage of the transferred technology and allow for imitation by the licensee. Subsidiary production and exports circumvent imitation but involve higher costs for the innovating firm The fir can strategically use the vintage of the technology to deter imitation by the licensee. As a result, transfers to affiliate might be of later vintage than technologies sold to outsiders. Through modificatio of the imitation costs, the host country’s system of patent protection influence the mode of technology transfers which in turn affects the welfare of the recipient economy.
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Bibliographic InfoPaper provided by Universidad Carlos III de Madrid in its series Open Access publications from Universidad Carlos III de Madrid with number info:hdl:10016/13420.
Length: 1151 p.
Date of creation: Oct 2000
Date of revision:
Publication status: Published in International Journal of Industrial Organization (2000-10) v.v. 18, p.1129-1149
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Web page: http://www.uc3m.es
International technology transfers; Imitation; Patent protection;
Find related papers by JEL classification:
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property Rights
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- D45 - Microeconomics - - Market Structure and Pricing - - - Rationing; Licensing
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