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Capital and Technology Flows: changing technology-acquisition strategies in developing countries

Author

Listed:
  • Suma Athreye

    (Brunel University)

  • Sandeep Kapur

    (Department of Economics, Mathematics & Statistics, Birkbeck)

Abstract

Given the imperfections in markets for technology, foreign direct investment (FDI) has been regarded as a channel for the transfer of technologies from developed to developing countries. FDI was expected to generate technological spillovers through vertical linkages with host-country firms and through involuntary leakages. Evidence suggests that inward FDI was a weak channel for technology transfer. with only limited spillovers in developing countries. With the wave of globalization that started in the 1980s, trade in disembodied technology has boomed. Some large firms in developing countries have also acquired technology through outward foreign investment, typically through acquisitions of firms with a portfolio of technology products. Reinforcing these channels for technology acquisition by developing country firms merits active policy interventions.

Suggested Citation

  • Suma Athreye & Sandeep Kapur, 2015. "Capital and Technology Flows: changing technology-acquisition strategies in developing countries," Birkbeck Working Papers in Economics and Finance 1511, Birkbeck, Department of Economics, Mathematics & Statistics.
    • Handle: RePEc:bbk:bbkefp:1511
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    File URL: https://eprints.bbk.ac.uk/id/eprint/15268
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    References listed on IDEAS

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    Cited by:

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    2. Krammer, Sorin M.S. & Strange, Roger & Lashitew, Addisu, 2018. "The export performance of emerging economy firms: The influence of firm capabilities and institutional environments," International Business Review, Elsevier, vol. 27(1), pages 218-230.

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    Keywords

    technology acquisition; licensing; foreign direct investment.;
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