We consider a firm’s incentive for foreign direct investment (FDI) and international technology licensing in a …

It is commonly believed that licensing of cost reducing technology increases welfare. We show that technology licensing … by an outside innovator may reduce welfare when the technology is not useful for all final goods producers. Technology … licensing reduces welfare if cost reduction by the licensed technology is small and the initial cost difference of the final …

the literature by investigating the effect of AfT flows on technology licensing in developing countries. The analysis has … generalized method of moments estimator. It has established that AfT flows foster technology licensing in countries that … financial) shocks significantly hamper innovation, including the demand for technology licensing, and that AfT flows promote …