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SUSTAINING THE GOOSE THAT LAYS THE GOLDEN EGG: A CONTINUOUS TREATMENT OF TECHNOLOGICAL TRANSFER
Author(s) -
Sá Nelson,
Connolly Michelle,
Peretto Pietro
Publication year - 2009
Publication title -
scottish journal of political economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.4
H-Index - 46
eISSN - 1467-9485
pISSN - 0036-9292
DOI - 10.1111/j.1467-9485.2009.00495.x
Subject(s) - intellectual property , goose , economics , production (economics) , technology transfer , simple (philosophy) , developing country , welfare , foreign direct investment , transfer (computing) , industrial organization , technological change , international trade , microeconomics , international economics , market economy , ecology , macroeconomics , economic growth , computer science , biology , philosophy , epistemology , parallel computing , operating system
This paper proposes a simple model of the trade‐offs perceived by innovating firms when investing in countries with limited intellectual property rights (IPR). The model allows for a continuous treatment of technology transfer and production cost gains occurring through FDI. While it does not consider possible changes in rates of innovation caused by changes in IPR in developing countries, it allows one to uncover a potentially non‐monotonic relationship between welfare and IPR in the recipient country.