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How does technology transfer affect backward linkages? A motivating example theoretical analysis

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  • Simons, Alexandre

Abstract

This paper develops a model in which the presence of a multinational leads to a technology transfer to its local suppliers and also modifies the degree of backward linkages in the local economy. First, we identify the domestic market characteristics under which the multinationals increase the level of backward linkages when they enter these markets. Moreover, we investigate the conditions under which the multinational could even benefit itself from transferring technology to its local suppliers. Finally, when the multinational transfers technology, we show when the level of backward linkages in the local economy increases.

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  • Simons, Alexandre, 2014. "How does technology transfer affect backward linkages? A motivating example theoretical analysis," Economic Modelling, Elsevier, vol. 42(C), pages 94-105.
    • Handle: RePEc:eee:ecmode:v:42:y:2014:i:c:p:94-105
    DOI: 10.1016/j.econmod.2014.05.029
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    References listed on IDEAS

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    Cited by:

    1. Chen, Feiqiong & Meng, Qiaoshuang & Li, Xueying, 2018. "Cross-border post-merger integration and technology innovation: A resource-based view," Economic Modelling, Elsevier, vol. 68(C), pages 229-238.

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