International Alliances and Technology Diffusion: An Analysis of the Global Tire Industry

29 Pages Posted: 1 Dec 2009 Last revised: 30 Aug 2012

See all articles by Sorin Krammer

Sorin Krammer

University of Exeter Business School; University of Leeds - Division of International Business

Date Written: December 2009

Abstract

This paper examines the determinants of international technology agreements in the global tire industry between 1985 and 1996. The empirical investigation combines firm level data on establishment, patenting, and alliance activity with dyad and country specific variables to explain the observed web of partnerships in the industry. My findings indicate that bigger, older, and more diversified firms that possess significant technological capabilities are more likely to provide technology. Smaller and younger firms that exhibit technological and market potential stand a better chance of receiving foreign technologies. Partner similarity in technology and production space, their combined alliance experience, and existing formal ties encourage technology transfers. Differences in terms of patent protection, political democracy and labor standards between recipients and providers' host countries have negative effects on the incidence of inter-firm agreements, while trade barriers increase it.

Keywords: technological agreements, strategic alliances, R&D, patents, global tire industry

JEL Classification: O32, O33, D21, L62, L65, D74

Suggested Citation

Krammer, Sorin M.S., International Alliances and Technology Diffusion: An Analysis of the Global Tire Industry (December 2009). Available at SSRN: https://ssrn.com/abstract=1515731 or http://dx.doi.org/10.2139/ssrn.1515731

Sorin M.S. Krammer (Contact Author)

University of Exeter Business School ( email )

Streatham Court
Xfi Building, Rennes Dr.
Exeter, EX4 4JH
United Kingdom

University of Leeds - Division of International Business ( email )

Leeds LS2 9JT
United Kingdom

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