Technology transfer in global value chains

Sampson, Thomas (2024) Technology transfer in global value chains. American Economic Journal: Microeconomics, 16 (2). 103 - 146. ISSN 1945-7669

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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 seek 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:	© 2024 American Economic Association
Divisions:	Economics
Subjects:	H Social Sciences > HB Economic Theory T Technology
JEL classification:	F - International Economics > F1 - Trade > F14 - Country and Industry Studies of Trade F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms; International Business L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L14 - Transactional Relationships; Contracts and Reputation; Networks L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L24 - Contracting Out; Joint Ventures; Technology Licensing O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O33 - Technological Change: Choices and Consequences; Diffusion Processes
Date Deposited:	05 Jul 2023 10:27
Last Modified:	18 Jun 2024 20:00
URI:	http://eprints.lse.ac.uk/id/eprint/119640

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