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Who Disseminates Technology to Whom, How, and Why: Evidence from Buyer-Seller Business Networks

  • Tomohiro MACHIKITA

    (Institute of Developing Economies and Stanford University)

  • Yasushi UEKI

    (Institute of Developing Economies)

This paper investigates the relationship between firm-level upgrading and buyer-seller business networks in order to better understand how and to whom technology transfer occurs. Using firm’s self-reported buyer and supplier network data from business–to–business (B2B) markets in Southeast Asia, this paper finds the following results: (1) Firms are more likely to achieve product and process innovation if they invest in inhouse R&D and transfer technology from their production partners; (2) product and process innovation varies considerably across different types of buyers and suppliers; (3) negative impacts of local suppliers suggest the importance of input quality for product and process innovation; and (4) large differences in product and process innovations among firms with similar buyers and suppliers can be explained by differences in embodied technology transfer even within narrowly defined production partners’ ownership. Data from technology transfer in buyer-seller business networks provide the basis for detecting the key drivers of industrial upgrading in the context of B2B markets in emerging economies.

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Paper provided by Economic Research Institute for ASEAN and East Asia (ERIA) in its series Working Papers with number DP-2013-26.

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Length: 59 pages.
Date of creation: Nov 2013
Date of revision:
Handle: RePEc:era:wpaper:dp-2013-26
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