Technology transfer in global value chains

Sampson, Thomas (2023) Technology transfer in global value chains. American Economic Journal: Microeconomics. ISSN 1945-7669 (In Press)

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Abstract

Global value chains create opportunities for North-South technology diffusion. This paper studies technology transfer in value chains when contracts are incomplete and input production technologies are imperfectly excludable. It introduces a new taxonomy of value chains based on whether the headquarters firm benefits from imitation of its supplier's technology. In inclusive value chains, where imitation is beneficial, the headquarters firm promotes technology diffusion. But in exclusive value chains headquarters seeks to limit supplier imitation. The paper analyzes how this distinction affects the returns to offshoring, the welfare effects of technical change and the social efficiency of knowledge sharing.

Item Type:	Article
Official URL:	https://www.aeaweb.org/journals/mic
Additional Information:	© 2023 American Economic Association
Divisions:	Economics
Subjects:	H Social Sciences > HB Economic Theory T Technology
JEL classification:	G - Financial Economics > G3 - Corporate Finance and Governance > G30 - General O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O10 - General
Date Deposited:	05 Jul 2023 10:27
Last Modified:	25 Apr 2024 23:15
URI:	http://eprints.lse.ac.uk/id/eprint/119640

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