International Technology Transfers and Competition

15 Pages Posted: 2 Nov 2009

See all articles by Eberhard Feess

Eberhard Feess

Frankfurt School of Finance & Management

Michael Hoeck

Proyecta Ventures GmbH

Oliver Lorz

RWTH Aachen University

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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: or

Eberhard Feess (Contact Author)

Frankfurt School of Finance & Management ( email )

Adickesallee 32-34
Frankfurt am Main, 60322

Michael Hoeck

Proyecta Ventures GmbH ( email )

Möhlstr. 9
München 91675


Oliver Lorz

RWTH Aachen University ( email )

Templergraben 55
D-52056 Aachen, 52056

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