IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/16399.html
   My bibliography  Save this paper

On the Dynamics of Technology Transfer

Author

Listed:
  • Vettas, Nikolaos
  • Kourandi, Frago
  • Sachtachtinskagia, Sabina

Abstract

We study the strategic timing and pace of cost reducing technology transfer by an upstream monopolist to a downstream market when there is potential competition downstream and the protection of intellectual property rights is imperfect. The possibility that the downstream firm may not fully compensate the upstream firm for the benefits that it has received, creates "hold- up" issues. In equilibrium transfer occurs to the same downstream firm in both periods, however the contractual relationship is crucially affected by the presence of competitors - in particular, there is a delay in technology transfer, relative to the vertical integration benchmark. The upstream firm is trying to limit the downstream firm's bargaining power, in an effort to pay lower rent or no rent in the subsequent period. Price competition downstream does not fully eliminate the opportunistic behavior created by the imperfect intellectual property rights.

Suggested Citation

  • Vettas, Nikolaos & Kourandi, Frago & Sachtachtinskagia, Sabina, 2021. "On the Dynamics of Technology Transfer," CEPR Discussion Papers 16399, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:16399
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP16399
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Technology transfer; Vertical contracts; Hold-up;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:16399. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.