Technology Transfer and Spillovers in International Joint Ventures

Müller, Thomas and Schnitzer, Monika (September 2003): Technology Transfer and Spillovers in International Joint Ventures. Discussion Papers in Economics 2003-22

Abstract

This paper analyzes the effects of a potential spillover on technology transfer of a multinational enterprise and on the host country policy. In particular, we examine how both parties' incentives can be controlled through the ownership structure in an international joint venture. In contrast to existing arguments we show that spillovers must not always have negative effects on technology transfer and they may be efficiency improving. Moreover, there are circumstances where a joint venture is mutually beneficial. Surprisingly, however, we find that despite the prospect of spillovers a joint venture is sometimes not in the interest of a host country.

• Item Type: Paper
• Keywords: Foreign Direct Investment, Joint Venutres, Ownership Structure, Multinational Enterprise, Spillovers, Transition Economics
• Faculties: Economics; Economics > Munich Discussion Papers in Economics; Economics > Munich Discussion Papers in Economics > Industrial Organization; Economics > Munich Discussion Papers in Economics > Transition Economics; Economics > Chairs > Seminar for Comparative Economics
• Subjects: 300 Social sciences > 300 Social sciences, sociology and anthropology; 300 Social sciences > 330 Economics
• JEL Classification: D43, F21, F23, L13, P31, O12
• Language: English