Technology Transfer and Spillovers in International Joint Ventures

37 Pages Posted: 11 Dec 2003

See all articles by Thomas Mueller

Thomas Mueller

Bundesnetzagentur

Monika Schnitzer

University of Munich - Department of Economics; Centre for Economic Policy Research (CEPR)

Date Written: October 2003

Abstract

This paper analyzes the effects of a potential spillover on technology transfer of a multinational enterprise and on the host country policy. In particular, we examine how both parties' incentives can be controlled through the ownership structure in an international joint venture. In contrast to existing arguments, we show that spillovers must not always have negative effects on technology transfer and they may be efficiency-improving. Moreover, there are circumstances where a joint venture is mutually beneficial. Surprisingly, however, we find that despite the prospect of spillovers, a joint venture is sometimes not in the interest of a host country.

Keywords: Foreign direct investment, joint ventures, ownership structure, multinational enterprise, spillovers, transition economies

JEL Classification: D43, F21, F23, L13, O12, P31

Suggested Citation

Mueller, Thomas and Schnitzer, Monika, Technology Transfer and Spillovers in International Joint Ventures (October 2003). CEPR Discussion Paper No. 4099. Available at SSRN: https://ssrn.com/abstract=478301

Thomas Mueller (Contact Author)

Bundesnetzagentur ( email )

Tulpenfeld 4
Bonn, 53113
Germany
+49 228 14 5908 (Phone)

HOME PAGE: http://www.bundesnetzagentur.de

Monika Schnitzer

University of Munich - Department of Economics ( email )

Ludwigstrasse 28
Munich, D-80539
Germany
+49 89 2180 2217 (Phone)
+49 89 2180 2767 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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