 The effect of strategic technology adoptions by local firms on technology spilloverChul-Woo Kwon and Bong Geul Chun Economic Modelling, 2015, vol. 51, issue C, 13-20 Abstract: This paper examines the influence on technology spillover of the strategic decisions by local firms to adopt the advanced technology of multinationals, which has in fact been ignored in previous studies. To do so, we construct a theoretical model by combining technology adoption and technology spillover models through backward linkage. If the technological gap is large between the multinational and local firm, it may be reasoned that the local firm is making the strategic decision not to adopt the advanced technology in order to avoid direct competition with the multinational firm. In this case, even though the transferred technology is diffused and the local firm has the capacity to absorb it, the technology spillover may not occur. Additionally, we apply the model to analyze the effect of local content requirements (LCR) on technology transfer and technology spillover. The analysis shows that LCR may fail to enhance technology spillover because these do not encourage the adoption of the technology. Keywords: Quality competition; Technology adoption; Technology transfer; Technology spillover; Local content requirement (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:51:y:2015:i:c:p:13-20 DOI: 10.1016/j.econmod.2015.07.013 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
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