Transfer of Technology to Developing Countries: Unilateral and Multilateral Policy Options

36 Pages Posted: 20 Apr 2016

See all articles by Bernard Hoekman

Bernard Hoekman

Robert Schuman Centre for Advanced Studies; European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS); Centre for Economic Policy Research (CEPR)

Keith E. Maskus

University of Colorado at Boulder - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Kamal Saggi

Southern Methodist University (SMU) - Department of Economics

Date Written: June 1, 2004

Abstract

Hoekman, Maskus, and Saggi analyze national and international policy options to encourage the international transfer of technology, distinguishing between four major channels of such transfer: trade in products, trade in knowledge, foreign direct investment, and intra-national and international movement of people. They develop a typology of country types and appropriate policy rules of thumb as a guide to both national policymakers and rule making in the World Trade Organization, as policies should differentiate between countries. The authors also develop some rules of thumb for policy intervention. These include: - Liberal trade policies for all types of countries. - Temporary encouragement of foreign direct investment inflows for low-income countries. - Licensing for technical transformation and adaptive investments by local firms to apply technologies. - Policy options for source economies to encourage international tranfer of technology to poor countries, including fiscal incentives, improvement of flows of public-domain technologies with appropriate subsidies, and price differentiation for exports of intellectual property products.

This paper - a product of the Trade Team, Development Research Group - is part of a larger effort in the group to analyze issues related to the design of special and differential treatment of developing countries in the WTO.

Keywords: Technology transfer, multilateral trade negotiations, economic development, special and differential treatment, WTO

JEL Classification: F13

Suggested Citation

Hoekman, Bernard and Hoekman, Bernard and Maskus, Keith E. and Saggi, Kamal, Transfer of Technology to Developing Countries: Unilateral and Multilateral Policy Options (June 1, 2004). Available at SSRN: https://ssrn.com/abstract=610377

Bernard Hoekman (Contact Author)

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

Robert Schuman Centre for Advanced Studies ( email )

Fiesole, Tuscany
Italy

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Keith E. Maskus

University of Colorado at Boulder - Department of Economics ( email )

Campus Box 256
Boulder, CO 80309
United States
303-492-7588 (Phone)
303-492-8960 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Kamal Saggi

Southern Methodist University (SMU) - Department of Economics ( email )

Dallas, TX 75275
United States
214-768-3274 (Phone)
214-768-1821 (Fax)

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