Intra-Country Technology Transfer

Dutta, Meghna; Marjit, S

Intra-Country Technology Transfer

Dutta, M. and Marjit, S. (2016), "Intra-country Technology Transfer", Indian Economic Review, Vol. LI, No.1–2, pp. 117-127

12 Pages Posted: 12 Apr 2019 Last revised: 25 Aug 2019

See all articles by Meghna Dutta

S Marjit

Centre for Studies in Social Sciences, Calcutta

Date Written: May 19, 2016

Abstract

Production fragmentation is an important decision for firms. The decision becomes even more imperative because with the decision to fragment the production process is intertwined the decision to transfer technology. This paper models the transfer of technology from a formal manufacturing firm to a low cost firm which do not have the technology to produce the whole good. We show that the wage differential plays an important role in deciding technology transfer. However, if there is a threat of entry by a foreign firm, the decision of the formal sector domestic firm changes significantly wherein, technology transfer then becomes the dominant strategy.

Keywords: Technology Transfer, FDI, Symmetric Duopoly, Outsourcing

JEL Classification: L24, O33

Suggested Citation: Suggested Citation

Dutta, Meghna and Marjit, S, Intra-Country Technology Transfer (May 19, 2016). Dutta, M. and Marjit, S. (2016), "Intra-country Technology Transfer", Indian Economic Review, Vol. LI, No.1–2, pp. 117-127, Available at SSRN: https://ssrn.com/abstract=3355154