We examine whether an increase in foreign direct investment (FDI) flows necessarily increases international technology transfer (ITT). The answer to this question depends on whether FDI is the sole channel of ITT or whether other channels of ITT such as imitation are present for the host...

This paper develops a product cycle model with endogenous and costly innovation, imitation, and foreign direct investment (FDI) to address the concerns of developing nations that stronger intellectual property rights (IPR) protection would force them to waste scarce resources 'reinventing the...

We study the role of increased outsourcing of production to a low wage country on relative wages across countries and innovation incentives. In particular, we examine the following causal forces behind an increase in the extent of international outsourcing: 1) a reduction in the resource...