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

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Author Info
Pedro Mendi () (School of Economics and Business Administration, University of Navarra)

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Abstract

I analyze a sample of contracts for the acquisition of technology by Spanish firms, where I observe firm and technology characteristics, as well as the type of scheduled payments, whether fixed and/or variable. I find first that technology type influences the chances of the parties reaching an agreement, and second, that the explanations for observed payments based on moral hazard or risk aversion alone are not satisfactory. I argue that all these theories fail to take into account the fact that the contractual relationship is extended along time and that the parties will choose the kind of payments that better estimate the value of the relationship.

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Paper provided by School of Economics and Business Administration, University of Navarra in its series Faculty Working Papers with number 05/03.

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Length: 40 pages pages
Date of creation: Jan 2003
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Publication status: Published, Journal of Economics and Management Strategy, 2005, 14(2): pp. 403-429
Handle: RePEc:una:unccee:wp0503

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Find related papers by JEL classification:
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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  17. Aghion, Philippe & Tirole, Jean, 1994. "The Management of Innovation," The Quarterly Journal of Economics, MIT Press, vol. 109(4), pages 1185-1209, November. [Downloadable!] (restricted)
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  26. Lerner, Josh & Merges, Robert P, 1998. "The Control of Technology Alliances: An Empirical Analysis of the Biotechnology Industry," Journal of Industrial Economics, Blackwell Publishing, vol. 46(2), pages 125-56, June. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Francisco Caballero-sanz & Rafael Moner-colonques & José Sempere-monerris, 2005. "Licensing policies for a new product," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 14(8), pages 697-713, November. [Downloadable!] (restricted)
  2. Mendi, Pedro, 2005. "Contracting for the transfer of technology within multinational corporations: Empirical evidence from Spain," IESE Research Papers D/607, IESE Business School. [Downloadable!]
  3. Pierce, Andrea & Sen, Debapriya, 2009. "Outsourcing versus technology transfer: Hotelling meets Stackelberg," MPRA Paper 15673, University Library of Munich, Germany. [Downloadable!]
  4. Pedro Mendi, 2004. "Contractual Implications of International Trade in Tacit Knowledge," Faculty Working Papers 11/04, School of Economics and Business Administration, University of Navarra. [Downloadable!]
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