| 2002) “Trade, foreign direct investment, and international technology transfer: a survey,” World Bank Research Observer 17 (2002) | |||||||||||||||||
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| Abstract: This paper surveys the trade literature on international technology transfer, paying particular attention to the role of foreign direct investment. A central question of interest is whether technologies introduced by multinationals diffuse to local firms. Major conclusions of theoretical models as well as the relevant empirical evidence regarding technology spillovers are discussed. The paper also discusses the potential impact of host country policies regarding trade, foreign direct investment, and intellectual property rights protection on international technology transfer. *This paper is intended to serve as a background paper for the World Bank's “Microfoundations of International Technology Diffusion, ” research project. I thank Amy Glass, Bernard Hoekman, Aart Kraay, Aaditya Mattoo, Howard Pack, and Jim Tybout for helpful comments. Non-technical summary This paper critically surveys the literature that explores the role of trade and foreign direct investment (FDI) as channels of international technology transfer. Attention is paid to the role that wholly owned subsidiaries of multinational firms and international joint ventures play in transmitting technology globally. Arms length channels of technology transfer such as licensing are also | |||||||||||||||||
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