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Neelanjan Sen
 
''Technology transfer and its effect on innovation''
( 2015, Vol. 35 No.4 )
 
 
This paper analyses the relationship of technology transfer and innovation in a Cournot duopoly framework, where technology transfer between the firms may occur after the innovation decision is taken by the high cost firm. The possibility of licensing via fixed-fee or royalty, encourages (discourages) innovation if the cost difference between the firms is high (low). Hence, it is shown that technology transfer and innovation are substitutes (complements) if the cost difference between the firms is low (high).
 
 
Keywords: Technology licensing; Innovation; Cournot Competition
JEL: L2 - Firm Objectives, Organization, and Behavior: General
L1 - Market Structure, Firm Strategy, and Market Performance: General
 
Manuscript Received : Oct 04 2015 Manuscript Accepted : Dec 13 2015

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