Technology policies, technology transfer by multinational enterprises and R&D activities in LDCs
A simple game theoretic model is developed to study the interaction between the multinational enterprise's (MNE's) technology transfer and the domestic firm's R&D intensity in an LDC. The implications of two technology policies are studied. Two results are derived under certain plausible conditions. First, the subsidy on the MNE's technology transfer may decrease the domestic firm's R&D. Second, the subsidy on the domestic firm's R&D may decrease the technology level transferred by the MNE to the host country. Welfare implications on domestic consumers and producers are also derived. Copyright Kluwer Academic Publishers 1994
References listed on IDEAS
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.:
- Lee, Tom & Wilde, Louis L, 1980. "Market Structure and Innovation: A Reformulation," The Quarterly Journal of Economics, MIT Press, vol. 94(2), pages 429-36, March.
- Huizinga, Harry, 1992.
"The tax treatment of R&D expenditures of multinational enterprises,"
Journal of Public Economics,
Elsevier, vol. 47(3), pages 343-359, April.
- Huizinga, H.P., 1992. "The tax treatment of R&D expenditures of multinational enterprises," Other publications TiSEM f4ce9f51-8359-4982-8f41-c, Tilburg University, School of Economics and Management.
- Jensen, Richard & Thursby, Marie, 1987. "A Decision Theoretic Model of Innovation, Technology Transfer, and Trade," Review of Economic Studies, Wiley Blackwell, vol. 54(4), pages 631-47, October.
- Grossman, G.M. & Helpman, E., 1988.
"Comparative Advantage And Long-Run Growth,"
39-88, Tel Aviv.
- Fung, K-Y.M. & Ishikawa, J., 1990.
"Dynamic Increasing Returns, Technology And Economic Growth In A Small Open Economy,"
UWO Department of Economics Working Papers
9013, University of Western Ontario, Department of Economics.
- Fung, Ka-yiu Michael & Ishikawa, Jota, 1991. "Dynamic increasing returns, technology and economic growth in a small open economy," Journal of Development Economics, Elsevier, vol. 37(1-2), pages 63-87, November.
- Reinganum, Jennifer F, 1983.
"Uncertain Innovation and the Persistence of Monopoly,"
American Economic Review,
American Economic Association, vol. 73(4), pages 741-48, September.
- Reinganum, Jennifer R., 1982. "Uncertain Innovation and the Persistence of Monopoly," Working Papers 431, California Institute of Technology, Division of the Humanities and Social Sciences.
- Huizinga, H., 1989.
"National Tax Policies Towards Product-Innovating Multinational Enterprises,"
8934, Tilburg - Center for Economic Research.
- Huizinga, Harry, 1991. "National tax policies towards product-innovating multinational enterprises," Journal of Public Economics, Elsevier, vol. 44(1), pages 1-14, February.
- Huizinga, H.P., 1989. "National tax policies towards product-innovating multinational enterprises," Discussion Paper 1989-34, Tilburg University, Center for Economic Research.
- Loury, Glenn C, 1979.
"Market Structure and Innovation,"
The Quarterly Journal of Economics,
MIT Press, vol. 93(3), pages 395-410, August.
- repec:cep:stitep:/1980/04 is not listed on IDEAS
- Horstmann, Ignatius J & Markusen, James R, 1989. "Firm-Specific Assets and the Gains from Direct Foreign Investment," Economica, London School of Economics and Political Science, vol. 56(221), pages 41-48, February.
- Horstmann, Ignatius J & Markusen, James R, 1987. "Strategic Investments and the Development of Multinationals," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(1), pages 109-21, February.
- Gorecki, Paul K, 1976. "The Determinants of Entry by Domestic and Foreign Enterprises in Canadian Manufacturing Industries: Some Comments and Empirical Results," The Review of Economics and Statistics, MIT Press, vol. 58(4), pages 485-88, November.
- Blomstrom, Magnus & Persson, Hakan, 1983. "Foreign investment and spillover efficiency in an underdeveloped economy: Evidence from the Mexican manufacturing industry," World Development, Elsevier, vol. 11(6), pages 493-501, June.
- Veugelers, Reinhilde & Houte, Peter Vanden, 1990. "Domestic R&D in the presence of multinational enterprises," International Journal of Industrial Organization, Elsevier, vol. 8(1), pages 1-15.
When requesting a correction, please mention this item's handle: RePEc:kap:openec:v:5:y:1994:i:3:p:275-287. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.