Technology Transfer in Global Value Chains

52 Pages Posted: 31 Jan 2022

See all articles by Thomas Sampson

Thomas Sampson

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP)

Multiple version iconThere are 2 versions of this paper

Date Written: 2022

Abstract

Firm-to-firm relationships in 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. The paper introduces a new taxonomy of value chains based on whether or not 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. By contrast, 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. Weaker intellectual property rights over input production technologies raise welfare when value chains are inclusive, but have the opposite effect under exclusive value chains.

Keywords: technology transfer, global value chains, incomplete contracts, intellectual property rights, imitation

JEL Classification: D230, F100, F230, O340

Suggested Citation

Sampson, Thomas, Technology Transfer in Global Value Chains (2022). CESifo Working Paper No. 9532, Available at SSRN: https://ssrn.com/abstract=4020683 or http://dx.doi.org/10.2139/ssrn.4020683

Thomas Sampson (Contact Author)

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
149
Abstract Views
510
Rank
415,683
PlumX Metrics