Multinationals, technology transfers and spillovers

Yunyun Wan
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Yunyun Wan: Graduate School of Economics, Kobe University

No 2010, Discussion Papers from Graduate School of Economics, Kobe University

Abstract: In this paper we investigate whether multinational firms transfer the state-of-the-art technology to subsidiaries in the presence of unintended technology spillovers. It is found that the transfer is more likely when multinationals face (i) higher spillover rates, (ii) fewer local competitors, and (iii) more multinational competitors. "Forced technology transfer" to local competitors, as observed in China, harms multinationals while benefiting the host country. With endogenous entry of a local firm, however, there are cases in which forced technology transfer harms the host country.

Pages: 27 pages
Date: 2020-07
New Economics Papers: this item is included in nep-int and nep-ure
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