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Economic consequences of limited technology transferability

journal contribution
posted on 1998-03-01, 00:00 authored by Xiangkang YinXiangkang Yin, Ehud Zuscovitch
Because technology is often context‐dependent and partly tacit, it is much less transferable than conventional ‘innovation and market structure’ models have long assumed. Technological know‐how is represented in this paper as a combination of formal knowledge and informal practice. The balance of these basic components is viewed as an optimisation of R&D investment structure and level within an oligopolistic framework. We analyse the outcomes of this optimisation in terms of R&D production efficiency and social welfare. With regard to R&D investment structure, we find that the equilibrium outcome is neither efficient nor socially optimal, and the stronger competition is, the larger the divergence from efficiency and social optimum. For R&D investment level, the results are less conclusive, but they imply that competition represents the best conditions for stimulating R&D investment

History

Journal

Australian economic papers

Volume

37

Issue

1

Pagination

22 - 35

Publisher

John Wiley & Sons

Location

Chichester, Eng.

ISSN

0004-900X

eISSN

1467-8454

Language

eng

Publication classification

C1.1 Refereed article in a scholarly journal

Copyright notice

1998, Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia

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