presents a theoretical growth model where MNCs directly affect the endogenous growth rate via technological spillovers. This is … novel since other endogenous growth models with MNCs, e.g. the Grossman-Helpman model, assume away the knowledge-spillovers … the model. Specifically, we find industry-level scale effects and international knowledge spillovers that are unrelated to …

patent. Provided that spillovers exist in the case of unilateral revelation of know-how, it can be shown that non … equilibrium is unique for high spillovers. Cooperation can occur for low spillovers. For certain parameters there exists an …

structure in an international joint venture. In contrast to existing arguments, we show that spillovers must not always have … venture is mutually beneficial. Surprisingly, however, we find that despite the prospect of spillovers, a joint venture is …