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Intra-country Technology Transfer

Author

Listed:
  • DUTTA, MEGHNA
  • MARJIT, SUGATA

Abstract

Production fragmentation is an important decision for firms. The decision becomes even more imperative because with the decision to fragment the production process is intertwined the decision to transfer technology. This paper models the transfer of technology from a formal manufacturing firm to a low cost firm which do not have the technology to produce the whole good. We show that the wage differential plays an important role in deciding technology transfer. However, if there is a threat of entry by a foreign firm, the decision of the formal sector domestic firm changes significantly wherein, technology transfer then becomes the dominant strategy.

Suggested Citation

  • Dutta, Meghna & Marjit, Sugata, 2016. "Intra-country Technology Transfer," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 51(1), pages 117-127.
    • Handle: RePEc:dse:indecr:0114
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    Citations

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    Cited by:

    1. Debarati Ghosh & Meghna Dutta, 2023. "Credit Constraints and Increased Firm-Level Production Fragmentation: Evidence from India," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 15(1), pages 93-108, January.

    More about this item

    Keywords

    Technology Transfer; FDI; Symmetric Duopoly; Outsourcing;
    All these keywords.

    JEL classification:

    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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