technological effort. When the incumbent supplier's cost of improving efficiency is high, upstream (or, respectively, downstream … upstream (downstream) competition. However, and in sharp contrast to existing literature, when technological effort is less … incumbent supplier's technological effort. …

vary inversely with their technological effort. We distinguish between upstream knowledge diffusion, which occurs when the … technological effort is low, technology transfer is encouraged (discouraged) by upstream (downstream) knowledge diffusion. When …, however, the cost of engaging in technological effort is low, and hence where technological effort has a significant impact on …