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Technology Transfer in Global Value Chains

Thomas Sampson

No 9532, CESifo Working Paper Series from CESifo

Abstract: Firm-to-firm relationships in global value chains create opportunities for North-South technology diffusion. This paper studies technology transfer in value chains when contracts are incomplete and input production technologies are imperfectly excludable. The paper introduces a new taxonomy of value chains based on whether or not the headquarters firm benefits from imitation of its supplier’s technology. In inclusive value chains, where imitation is beneficial, the headquarters firm promotes technology diffusion. By contrast, in exclusive value chains headquarters seeks to limit supplier imitation. The paper analyzes how this distinction affects the returns to offshoring, the welfare effects of technical change and the social efficiency of knowledge sharing. Weaker intellectual property rights over input production technologies raise welfare when value chains are inclusive, but have the opposite effect under exclusive value chains.

Keywords: technology transfer; global value chains; incomplete contracts; intellectual property rights; imitation (search for similar items in EconPapers)
JEL-codes: D23 F10 F23 O34 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-cta, nep-eff, nep-int and nep-tid
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Working Paper: Technology transfer in global value chains (2022) Downloads
Working Paper: Technology Transfer in Global Value Chains (2022) Downloads
Working Paper: Technology transfer in global value chains (2022) Downloads
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