EXCLUSIVE SAFEGUARDS AND TECHNOLOGY TRANSFER: Subcontracting Agreements in Eastern Europe’s Car Component Industry

Peter Møllgaard and Jochen Lorentzen
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Jochen Lorentzen: Department of International Economics and Management, Postal: Department of International Economics and Management, Copenhagen Business School (CBS), Howitzvej 60, DK-2000 Frederiksberg

No 10-2002, Working Papers from Copenhagen Business School, Department of Economics

Abstract: We study the rationale for the use of exclusivity to protect transfer of technology in

subcontracting agreements. The legal possibility arises through the EU Notice on

Subcontracting. Empirically, the link between exclusive agreements and technology transfer

among firms in the automotive supply industry in EU candidate countries is surprisingly weak,

although with exclusive-supply or exclusive-buying clauses in subcontracting agreements

upstream transfer of technology is more likely. Exclusive agreements are often reciprocal, and

are typically passed on. Downstream firms are more likely to face and use vertical restraints.

Technology trickles upstream: Multinational final assemblers transfer more technology than

lower-tier suppliers.

Keywords: Transfer of technology; subcontracting; exclusive agreements; automotive supply industry; vertical restraints (search for similar items in EconPapers)
JEL-codes: D23 D40 K12 L14 L42 L62 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2002-08-01
New Economics Papers: this item is included in nep-eec and nep-law
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Related works:
Journal Article: Exclusive Safeguards and Technology Transfer: Subcontracting Agreements in Eastern Europe's Car Component Industry (2004)
Working Paper: Exclusive Safeguards and Technology Transfer: Subcontracting Agreements in Eastern Europe's Car Component Industry (2002)
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