Government Intervention in Technology Transfer

Prabal Roy Choudhary
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Prabal Roy Choudhary: CSDILE, School of International Studies (SIS), Jawaharlal Nehru University (JNU), New Delhi-110067, India
Authors registered in the RePEc Author Service: Prabal Roy Chowdhury ()

Indian Economic Review, 2002, vol. 37, issue 1, 1-22

Abstract: We examine the efficacy of government intervention in technology import from a foreign firm. If the foreign firm can impose relicencing restrictions, domestic surplus is higher under government intervention if, as a consequence, the number of domestic firms adopting the technology increases. If, however, the number of adopting firms decreases due to government intervention, the domestic surplus may decline. In either case the payoff of the foreign firm is lower under government intervention. This, however, need not be true if the foreign firm cannot impose sublicensing restrictions on the domestic firms. In this case obviously government intervention makes less sense.

Keywords: Technology transfer; Government Intervention; Relicensing restrictions (search for similar items in EconPapers)
JEL-codes: O38 (search for similar items in EconPapers)
Date: 2002
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