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Technology transfer in global value chains

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  • Sampson, Thomas

Abstract

Global value chains create opportunities for North-South technology diffusion. This paper studies technology transfer in value chains when contracts are incomplete and input production technologies are imperfectly excludable. It introduces a new taxonomy of value chains based on whether the headquarters firm benefits from imitation of its supplier's technology. In inclusive value chains, where imitation is beneficial, the headquarters firm promotes technology diffusion. But in exclusive value chains headquarters seeks to limit supplier imitation. The paper analyzes how this distinction affects the returns to offshoring, the welfare effects of technical change and the social efficiency of knowledge sharing.

Suggested Citation

  • Sampson, Thomas, 2024. "Technology transfer in global value chains," LSE Research Online Documents on Economics 119640, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:119640
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    File URL: http://eprints.lse.ac.uk/119640/
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    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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