Contractual implications of international trade in tacit knowledge

Pedro Mendi

Applied Economics, 2007, vol. 39, issue 9, 1173-1183

Abstract: This article searches for evidence on the additional difficulty the parties have in contracting for the transfer of know-how relative to the transfer of patented technology. A sample of contracts for the acquisition of technology Spanish firms in 1991 is analysed to find a positive relationship between contract duration and the likelihood of transferring know-how in unaffiliated transfers. It is also found that technical assistance is bundled together with the transfer of know-how, suggesting that the parties try to mitigate opportunistic behaviour on the licensor's side.

Date: 2007
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DOI: 10.1080/00036840600592817

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