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Transfer of technology to developing countries : unilateral and multilateral policy options

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Author Info
Hoekman, Bernard M.
Maskus, Keith E.
Saggi, Kamal

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Abstract

The authors analyze national and international policy options to encourage the international transfer of technology, distinguishing between four major channels of such transfer: trade in products, trade in knowledge, foreign direct investment, and intra-national and international movement of people. They develop a typology of country types and appropriate policy rules of thumb as a guide to both national policymakers and rule making in the World Trade Organization, as policies should differentiate between countries. The authors also develop some rules of thumb for policy intervention. These include: 1) Liberal trade policies for all types of countries; 2) Temporary encouragement of foreign direct investment inflows for low-income countries; 3) Licensing for technical transformation and adaptive investments by local firms to apply technologies; 4) Policy options for source economies to encourage international transfer of technology to poor countries, including fiscal incentives, improvement of flows of public-domain technologies with appropriate subsidies, and price differentiation for exports of intellectual property products.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3332.

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Date of creation: 01 Jun 2004
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Handle: RePEc:wbk:wbrwps:3332

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Keywords: Environmental Economics&Policies; Economic Theory&Research; ICT Policy and Strategies; Labor Policies; General Technology; Environmental Economics&Policies; Economic Theory&Research; ICT Policy and Strategies; General Technology; Health Economics&Finance;

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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. James R. Tybout, 2000. "Manufacturing Firms in Developing Countries: How Well Do They Do, and Why?," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 11-44, March. [Downloadable!] (restricted)
  2. McCalman, Phillip, 2001. "Reaping what you sow: an empirical analysis of international patent harmonization," Journal of International Economics, Elsevier, vol. 55(1), pages 161-186, October. [Downloadable!] (restricted)
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  3. Keller, Wolfgang, 1996. "Absorptive capacity: On the creation and acquisition of technology in development," Journal of Development Economics, Elsevier, vol. 49(1), pages 199-227, April. [Downloadable!] (restricted)
  4. Smith, Pamela J., 2001. "How do foreign patent rights affect U.S. exports, affiliate sales, and licenses?," Journal of International Economics, Elsevier, vol. 55(2), pages 411-439, December. [Downloadable!] (restricted)
  5. Rhee, Yung Whee, 1990. "The catalyst model of development: Lessons from Bangladesh's success with garment exports," World Development, Elsevier, vol. 18(2), pages 333-346, February. [Downloadable!] (restricted)
  6. Parente, Stephen L & Prescott, Edward C, 1994. "Barriers to Technology Adoption and Development," Journal of Political Economy, University of Chicago Press, vol. 102(2), pages 298-321, April. [Downloadable!] (restricted)
  7. David Gisselquist & John Nash & Carl Pray, 2002. "Deregulating the Transfer of Agricultural Technology: Lessons from Bangladesh, India, Turkey, and Zimbabwe," World Bank Research Observer, Oxford University Press, vol. 17(2), pages 237-265, September.
  8. Pravin Krishna & Devashish Mitra, . "Trade Liberalization, Market Discipline and Productivity Growth: New Evidence From India," Working Papers 96-8, Brown University, Department of Economics. [Downloadable!]
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  9. Eaton, Jonathan & Kortum, Samuel, 1999. "International Technology Diffusion: Theory and Measurement," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(3), pages 537-70, August.
  10. Hausmann, Ricardo & Rodrik, Dani, 2002. "Economic Development as Self-Discovery," Working Paper Series rwp02-023, Harvard University, John F. Kennedy School of Government. [Downloadable!]
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  11. Brian J. Aitken & Ann E. Harrison, 1999. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," American Economic Review, American Economic Association, vol. 89(3), pages 605-618, June. [Downloadable!] (restricted)
  12. Guifang Yang & Keith Maskus, 2001. "Intellectual property rights and licensing: An econometric investigation," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(1), pages 58-79, March. [Downloadable!] (restricted)
  13. Ari Kokko & Mario Zejan & Ruben Tansini, 2001. "Trade regimes and spillover effects of FDI: Evidence from Uruguay," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(1), pages 124-149, March. [Downloadable!] (restricted)
  14. Wolfgang Keller, 2002. "Geographic Localization of International Technology Diffusion," American Economic Review, American Economic Association, vol. 92(1), pages 120-142, March. [Downloadable!]
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  15. Eaton, Jonathan & Kortum, Samuel, 1996. "Trade in ideas Patenting and productivity in the OECD," Journal of International Economics, Elsevier, vol. 40(3-4), pages 251-278, May. [Downloadable!] (restricted)
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  16. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May. [Downloadable!] (restricted)
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  17. Peri, Giovanni, 2003. "Knowledge Flows, R&D Spillovers and Innovation," ZEW Discussion Papers 03-40, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  18. Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander W, 1997. "North-South R&D Spillovers," Economic Journal, Royal Economic Society, vol. 107(440), pages 134-49, January. [Downloadable!] (restricted)
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  19. Dani Rodrik, 1993. "Taking Trade Policy Seriously: Export Subsidization as a Case Study in Policy Effectiveness," NBER Working Papers 4567, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  20. Saggi, Kamal, 1996. "Entry into a Foreign Market: Foreign Direct Investment versus Licensing," Review of International Economics, Blackwell Publishing, vol. 4(1), pages 99-104, February.
  21. Olarreaga, Marcelo & Schiff, Maurice & Wang, Yanling, 2003. "North-South and South-South Trade-Related Technology Diffusion: An Industry Level Analysis," CEPR Discussion Papers 3711, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  22. Kamal Saggi, 2002. "Trade, Foreign Direct Investment, and International Technology Transfer: A Survey," World Bank Research Observer, Oxford University Press, vol. 17(2), pages 191-235, September.
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  23. Ashish Arora & Andrea Fosfuri & Alfonso Gambardella, 2004. "Markets for Technology: The Economics of Innovation and Corporate Strategy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262511819, April.
  24. Blomstrom, Magnus & Kokko, Ari, 1997. "How foreign investment affects host countries," Policy Research Working Paper Series 1745, The World Bank. [Downloadable!]
Full references

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. Francesco Crespi & Valeria Costantini, 2007. "Environmental Regulation and the Export Dynamics of Energy Technologies," Working Papers 2007.53, Fondazione Eni Enrico Mattei. [Downloadable!]
    Other versions:
  2. Rita Almeida & Ana Margarida Fernandes, 2007. "Openness and Technological Innovations in Developing Countries: Evidence from Firm-Level Surveys," IZA Discussion Papers 2907, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Nora El-Bialy Ibrahim, 2008. "Software Piracy in Egypt: Analysis of the Institutional Environment and Efficiency of Enforcement Measures," Working Papers 13, The German University in Cairo, Faculty of Management Technology. [Downloadable!]
  4. Hoekman, Bernard & Smarzynska Javorcik, Beata, 2004. "Policies facilitating firm adjustment to globalization," Policy Research Working Paper Series 3441, The World Bank. [Downloadable!]
    Other versions:
  5. Sonja Peterson, 2008. "Greenhouse gas mitigation in developing countries through technology transfer?: a survey of empirical evidence," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 13(3), pages 283-305, March. [Downloadable!] (restricted)
  6. Keith Maskus, 2008. "The Globalization of Intellectual Property Rights and Innovation in Services," Journal of Industry, Competition and Trade, Springer, vol. 8(3), pages 247-267, December. [Downloadable!] (restricted)
  7. Ruth Rama, 2008. "Foreign investment innovation: a review of selected policies," The Journal of Technology Transfer, Springer, vol. 33(4), pages 353-363, August. [Downloadable!] (restricted)
  8. Hitoshi Tanaka & Tatsuro Iwaisako & Koichi Futagami, 2006. "Dynamic Analysis of Innovation and Licensing: The Effects of Intellectual Property Rights Protection," Discussion Papers in Economics and Business 06-06, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  9. Fu, Miao & Fu, Xiaolan & Li, Tieli, 2008. "International and Intra-national Technology Spillovers and Technology Development Paths in Developing Countries: The Case of China," Working Papers RP2008/96, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  10. Matthew Littleton, 2008. "The TRIPS Agreement and Transfer of Climate-Change-Related Technologies to Developing Countries," Working Papers 71, United Nations, Department of Economics and Social Affairs. [Downloadable!]
  11. Hitoshi Tanaka & Tatsuro Iwaisako & Koichi Futagami, 2006. "Dynamic Analysis of Innovation and International Transfer of Technology through Licensing," Discussion Papers in Economics and Business 06-06-Rev., Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Oct 2006. [Downloadable!]
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