Time-Cost Tradeoffs: Elasticity Estimates and Determinants for International Technology Transfer Projects

David Teece

Management Science, 1977, vol. 23, issue 8, 830-837

Abstract: This paper postulates and tests for a time-cost tradeoff during the establishment of manufacturing plants abroad based on U.S. technology. Data on twenty international projects are used to estimate negatively sloped tradeoff functions for which time-cost elasticities are subsequently calculated. The determinants of these elasticities are then analyzed and shown to bear some similarities with the determinants of time-cost tradeoffs in technological innovation. The elasticity measurements were higher for projects where the technology had not been previously commercialized, for large-scale projects, and for projects carried out by the larger firms.

Date: 1977
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:23:y:1977:i:8:p:830-837

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