Licensing versus direct investment: implications for economic growth

被引:2
作者
Glass, AJ [1 ]
Saggi, K
机构
[1] Ohio State Univ, Dept Econ, Columbus, OH 43210 USA
[2] So Methodist Univ, Dept Econ, Dallas, TX 75275 USA
关键词
innovation; licensing; foreign direct investment; multinational firms;
D O I
暂无
中图分类号
F [经济];
学科分类号
02 ;
摘要
We develop a symmetric two country model of foreign direct investment (FDI) that captures the internalization decision and its implications for both the rate and magnitude of innovations. When mode choice (licensing versus FDI) is fixed, a subsidy to multinational production increases the rate but decreases the size of innovations. When mode can switch, the rate and size of innovations both increase, provided the subsidy is not too large. Although innovation size decreases for industries where firms already were choosing FDI, innovation size increases for industries where firms switch from licensing to FDI because multinationals choose larger innovations than licensors. (C) 2002 Elsevier Science B.V. All rights reserved.
引用
收藏
页码:131 / 153
页数:23
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