International Technology Transfers and Competition

15 Pages Posted: 2 Nov 2009

See all articles by Eberhard Feess

Eberhard Feess

Frankfurt School of Finance & Management gemeinnützige GmbH

Michael Hoeck

Proyecta Ventures GmbH

Oliver Lorz

RWTH Aachen University

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Abstract

This paper analyzes North–South technology transfers in a model of oligopolistic competition and spatial product differentiation. Two firms in the North supply a high-tech good and a technically related low-tech good. They decide about licensing the low-tech good to suppliers in the South. With the license Southern firms get access to technology from the North, which enables them - with a certain probability - to enter the market for the high-tech good. Northern firms may therefore license strategically to influence the competitive environment in the high-tech market. In this setting, multiple equilibria with and without licensing may arise, and the resulting outcomes may be inefficient from the viewpoint of the Northern firms.

Suggested Citation

Feess, Eberhard and Hoeck, Michael and Lorz, Oliver, International Technology Transfers and Competition. Review of International Economics, Vol. 17, Issue 5, pp. 1038-1052, November 2009, Available at SSRN: https://ssrn.com/abstract=1495968 or http://dx.doi.org/10.1111/j.1467-9396.2009.00817.x

Eberhard Feess (Contact Author)

Frankfurt School of Finance & Management gemeinnützige GmbH ( email )

Adickesallee 32-34
Frankfurt am Main, 60322
Germany

Michael Hoeck

Proyecta Ventures GmbH ( email )

Möhlstr. 9
München 91675
Germany

HOME PAGE: http://www.proyectaventures.de/index.html

Oliver Lorz

RWTH Aachen University ( email )

Templergraben 55
D-52056 Aachen, 52056
Germany

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