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Dynamic Analysis of Innovation and International Transfer of Technology through Licensing

Hitoshi Tanaka (), Tatsuro Iwaisako () and Koichi Futagami ()
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Hitoshi Tanaka: Graduate School of Economics, Osaka University

No 06-06-Rev., Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This paper develops a quality-ladder type dynamic general equilibrium model with endogenous innovation and technology licensing as a major source of international technology transfer in developing countries. Examining the dynamic characteristics of the model fully, we explore the short- and long-run effects of both an improvement in the probability of reaching a licensing agreement with a given effort and an increase in the license fee rate. The model shows that the former promotes innovation and technology transfers in both the long and short run, while the latter discourages them.

Keywords: Innovation; Licensing; Technology transfer (search for similar items in EconPapers)
JEL-codes: F43 O33 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2006-02, Revised 2006-10
New Economics Papers: this item is included in nep-cse, nep-ino and nep-knm
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Journal Article: Dynamic analysis of innovation and international transfer of technology through licensing (2007) Downloads
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