How Absorptive Capacity is Formed in a Latecomer Economy: Different Roles of Foreign Patent and Know-how Licensing in Korea

Chung, Moon Young; Lee, Keun

doi:10.1016/j.worlddev.2014.09.010

Cited by 42 publications

(39 citation statements)

References 27 publications

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“…When the dummy is 1, the gap is high, whereas when the dummy is 0, the gap is small. For absorptive capacity, we use a dummy variable that takes the value 1 when a domestic firm provides formal training programmes for its employees, and 0 otherwise (see Cheng 2011;Chudnovsky, Lopez, and Rossi 2008;Chung and Lee 2015). Although recently Chung and Lee (2015) have reported absorptive capacity to be measured through its origin, i.e.…”

Section: Empirical Approachmentioning

confidence: 99%

“…For absorptive capacity, we use a dummy variable that takes the value 1 when a domestic firm provides formal training programmes for its employees, and 0 otherwise (see Cheng 2011;Chudnovsky, Lopez, and Rossi 2008;Chung and Lee 2015). Although recently Chung and Lee (2015) have reported absorptive capacity to be measured through its origin, i.e. the licensing of foreign technologies, they also acknowledge the importance of on-the-job training programmes as an alternative way to build absorptive capacity.…”

Section: Empirical Approachmentioning

confidence: 99%

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Transmission channels matter: Identifying spillovers from FDI

Demena

Murshed

2018

The Journal of International Trade & Economic Development

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The empirical literature on the spillovers of foreign direct investment (FDI) has so far not analysed the well-established theoretical transmission channels through which FDI impacts on domestic firms. This paper shows how channels of transmission matter for productivity spillovers from FDI by providing more fuller and nuanced picture of the effects. We analyse a panel of eight sub-Saharan Africa countries spanning the period 2006-2014 and demonstrate the empirical relevance of distinguishing three channelsdemonstration, labour mobility, and competition. We provide measures of these effects and also show that the size, significance, and sign of spillover effects depend on the local absorptive capacity, technology levels, geographical proximity, and foreign ownership structure. Overall, results suggest that demonstration spillovers are large and economically significant, whereas the patterns of labour mobility and competition spillovers are not stable across the various specifications and measures. Finally, the analysis involves several measures of further investigations and robustness checks. Results are robust to the construction of spillover and outcome variables, the introduction of additional explanatory variables and an alternative estimation method.

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Section: Empirical Approachmentioning

confidence: 99%

Section: Empirical Approachmentioning

confidence: 99%

Transmission channels matter: Identifying spillovers from FDI

Demena

Murshed

2018

The Journal of International Trade & Economic Development

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“…Table presents the transition intervals at which licensees turn into licensors, according to our patent data sources. The interval between a technology consumer importing patents from overseas countries and transforming into a provider might be interpreted as evidence of innovative capacity elevation (Chung & Lee, ). It also shows how a region that serves a leading role, initiated by exogenous technology, can support other domestic regions (Trippl, Grillitsch, & Isaksen, ).…”

Section: Exploring the Qualities Of Anchor Regionsmentioning

confidence: 99%

The persistence of inter‐regional hierarchy in technology transfer networks: An analysis of Chinese patent licensing data

Seo

Sonn

2018

Growth and Change

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This paper asks whether the technological development of a nation reduces the inter‐regional hierarchy in knowledge flow. We examine two scenarios that are the alternative to each other. The first is what we call the globalization of regional innovation system/weakening of inter‐regional hierarchy scenario: As many regions develop their niches in the global economy, the national “anchor” region loses its relative importance as the importer and distributor of new knowledge, rendering the domestic inter‐regional hierarchy less significant as a result. The second scenario is the globalization of national innovation system/persistence of inter‐regional hierarchy. The nation’s traditional anchor region becomes even more active in importing technology and distributing it to other regions of the country. To test which scenario is closer to reality, we employ social network metrics to analyse inter‐regional technology diffusion networks using Chinese patent licensing data for the 1998–2013 period. Our findings support the second scenario, showing that the influence of the traditional anchor region persists in the hierarchical network structure as new cities enter the network. We found five anchor regions: the three usual suspects—Beijing, Shanghai and Shenzhen—plus two that were slightly less expected—Dongguan and Suzhou.

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“…For middle-income countries, evidence indicates that foreign technology licensing can have important benefits on firms by means of learning, know-how acquisition, and complementarities with internal R&D capacity (Lee, 1996;Arora, 1996;Griffith et al, 2004). Chung and Lee (2015) show that foreign technology licensing can be a key element to the firm learning process in catching up economies as it mostly occurs before firms engage in in-house R&D. Firms engaged in both activities over time show a higher patent propensity and product introduction rates. It is important then to better understand in what conditions and through which arrangements know-how transfer occurs and accompanies codified technology acquisition.…”

Section: Taking Advantage Of Contract-level Data Registered By the Dementioning

confidence: 99%

Contracting for technology transfer: patent licensing and know-how in Brazil

Martínez

Zúñiga

2016

Industry and Innovation

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Using contract level data, we study the relation between the inclusion of know-how in cross-border patent licensing agreements and the contractual terms used by firms to deal with moral hazard risks. We use official data on international technology contracts with patent licensing terms registered by affiliated and unaffiliated parties before the Department of Technology Transfer of the National Institute of Intellectual Property (INPI) in Brazil between 1996 and 2012. We find that contracts between unaffiliated parties involving know-how transfer show distinctive contractual and technology features compared to the rest: (i) they involve younger but lower quality technologies (compared to contracts without know-how); (ii) they are more prone to up front lumpsum payments than royalty or combined payments (royalty and fixed); and (iii) they are more likely to be accompanied by the licensing of other IPRs, in addition to patents, such as trademarks.

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How Absorptive Capacity is Formed in a Latecomer Economy: Different Roles of Foreign Patent and Know-how Licensing in Korea

Cited by 42 publications

References 27 publications

Transmission channels matter: Identifying spillovers from FDI

Transmission channels matter: Identifying spillovers from FDI

The persistence of inter‐regional hierarchy in technology transfer networks: An analysis of Chinese patent licensing data

Contracting for technology transfer: patent licensing and know-how in Brazil

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