Read e-book online Controlling International Technology Transfer. Issues, PDF

By Tagi Sagafi-Nejad

ISBN-10: 0080271804

ISBN-13: 9780080271804

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It does not need to invest abroad or operate foreign bottling plants. A simple franchise and supply contract is sufficient, because Coca-Cola does not allow others access to the Coca-Cola syrup formula - the Coca-Cola Company supplies the syrup. Through the pricing of the syrup and the franchising fee charged for the use of Coca-Cola's trademark, the company captures the economic rent. Thus firms need not invest abroad in order to appropriate economic rents. Whether they need to or not depends on the technological chain, the end product of the technology, and the extent to which one or another transfer instrument can be used to protect those aspects of the technology that yield the economic rents.

The point is that it is not so much the technology per se that is proprietary, but the ability to operate the technology and/or the end product of the technology. Moreover, the product itself may be and probably is protected by patents, trademarks, or brand names. It is largely the end product of technology that is desired, and it is the ability to produce it effectively that allows TNCs to appropriate economic rents in their international operations. Therefore I am unsure how helpful it is to dichotomize transactions across national boundaries into those that take place through the market and those which take place within an enterprise.

Tinbergen. Rotterdam: Rotterdam University Press. 26 INTERNATIONAL TECHNOLOGY TRANSFER Nurkse, R. 1954. The problem of international investment today in the light of nineteenth century experience. Economic Journal 64 (September). Ozawa, T. 1975. Peculiarities of Japan's multinationalism: Facts and theories. Banca Nationale del Lavoro Quarterly Review (December). Penrose, E. 1959. The theory of the growth of the firm. New York: Wiley. Plasschaert, S. 1979. Transfer pricing and multinational corporations.

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Controlling International Technology Transfer. Issues, Perspectives, and Policy Implications by Tagi Sagafi-Nejad


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