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Technology transfer in global value Chains

By: Sampson, Thomas.
Material type: materialTypeLabelBookPublisher: American Economic Journal: Microeconomics Description: 16(2). May, 2024: p.103-146.Subject(s): Global value chains, Technology diffusion, North-South transfer, Incomplete contracts, Input production, Imperfect excludability, Value chain taxonomy, Inclusive value chains, Exclusive value chains, Supplier imitation, Technology transfer, Offshoring returns, Welfare effects, Technical change, Knowledge sharing, Social efficiency, Innovation strategy, Contract theory, Economic development, International trade In: American Economic Journal: MicroeconomicsSummary: 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. It introduces a new taxonomy of value chains based on whether 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. But in exclusive value chains headquarters seek 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.- Reproduced https://www.aeaweb.org/articles?id=10.1257/mic.20220016
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Articles Articles Indian Institute of Public Administration
16(2). May, 2024: p.103-146 Available AR132574

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. It introduces a new taxonomy of value chains based on whether 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. But in exclusive value chains headquarters seek 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.- Reproduced

https://www.aeaweb.org/articles?id=10.1257/mic.20220016

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