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

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  • Pedro Mendi

Abstract

This paper studies the impact of contract duration in determining scheduled payments in international transfers of technology. Analyzing a sample of contracts written by Spanish firms in 1991, the main empirical finding is a positive relationship between contract duration and the probability of the parties including variable payments in the first period of the agreement. This result suggests that the parties choose the type of payments to be made, whether fixed or variable, so as to avoid early termination of the relationship, even in the absence of opportunistic behavior or risk aversion. Copyright Blackwell Publishing 2005.

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  • Pedro Mendi, 2005. "The Structure of Payments in Technology Transfer Contracts: Evidence from Spain," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 14(2), pages 403-429, June.
  • Handle: RePEc:bla:jemstr:v:14:y:2005:i:2:p:403-429
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    References listed on IDEAS

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    Cited by:

    1. Mendi, Pedro, 2007. "Trade in disembodied technology and total factor productivity in OECD countries," Research Policy, Elsevier, vol. 36(1), pages 121-133, February.
    2. Marie-Laure Allain & Emeric Henry & Margaret Kyle, 2016. "Competition and the Efficiency of Markets for Technology," Management Science, INFORMS, vol. 62(4), pages 1000-1019, April.
    3. Krammer, Sorin M.S., 2014. "Assessing the relative importance of multiple channels for embodied and disembodied technological spillovers," Technological Forecasting and Social Change, Elsevier, vol. 81(C), pages 272-286.
    4. Stamatopoulos, Giorgos & Tauman, Yair, 2008. "Licensing of a quality-improving innovation," Mathematical Social Sciences, Elsevier, vol. 56(3), pages 410-438, November.
    5. Mendi, Pedro, 2005. "Contracting for the transfer of technology within multinational corporations: Empirical evidence from Spain," IESE Research Papers D/607, IESE Business School.
    6. Marie-Laure Allain & Emeric Henry & Margaret K. Kyle, 2011. "Inefficiencies in technology transfer: theory and empirics," Sciences Po publications 8206, Sciences Po.
    7. Andrea Pierce & Debapriya Sen, 2014. "Outsourcing versus technology transfer: Hotelling meets Stackelberg," Journal of Economics, Springer, vol. 111(3), pages 263-287, April.
    8. Pedro Mendi & Rodrigo Costamagna, 2014. "Exchange rate uncertainty and international technology transfer," Economics Bulletin, AccessEcon, vol. 34(1), pages 551-557.
    9. Marie-Laure Allain & Emeric Henry & Margaret Kyle, 2011. "Inefficiencies in the sale of ideas: theory and empirics," Working Papers hal-00639128, HAL.
    10. Gordanier, John & Miao, Chun-Hui, 2011. "On the duration of technology licensing," International Journal of Industrial Organization, Elsevier, vol. 29(6), pages 755-765.
    11. Rodrigo Costamagna, 2010. "Exchange rate uncertainty and international technology transfer," NCID Working Papers 03/2010, Navarra Center for International Development, University of Navarra.
    12. repec:spo:wpecon:info:hdl:2441/eu4vqp9ompqllr09iatrn4log is not listed on IDEAS
    13. BHATTACHARYA, Sudipto & D’ASPREMONT, Claude & GURIEV, Sergei & SEN, Debapriya, 2012. "Cooperation in R&D: patenting, licensing and contracting," CORE Discussion Papers 2012055, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    14. Debapriya Sen & Giorgos Stamatopoulos, 2009. "Technology Transfer Under Returns To Scale," Manchester School, University of Manchester, vol. 77(3), pages 337-365, June.
    15. Pedro Mendi & Rafael Moner-Colonques & José J. Sempere-Monerris, 2016. "Optimal know-how transfers in licensing contracts," Journal of Economics, Springer, vol. 118(2), pages 121-139, June.
    16. Francisco Caballero-sanz & Rafael Moner-colonques & Jose Sempere-monerris, 2005. "Licensing policies for a new product," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(8), pages 697-713.
    17. Pedro Mendi, 2007. "Contractual implications of international trade in tacit knowledge," Applied Economics, Taylor & Francis Journals, vol. 39(9), pages 1173-1183.

    More about this item

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - 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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