Licensing versus direct investment: implications for economic growth

• 成果类型: Article
• 署名作者: Glass, AJ; Saggi, K
• 署名单位: University System of Ohio; Ohio State University; Southern Methodist University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• 发表日期: 2002
• 页码: 131-153
• 关键词: innovation; Licensing; Foreign direct investment; multinational firms

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.