“…Second, like many other works on international technology licensing (see, e.g., Mottiner and Johnson, 2000, Kabiraj and Marjit, 2003, Mukherjee and Pennings, 2006and Feess et al 2009 we assume away foreign direct investment (FDI) by firm 1 due to an actual or perceived (e.g., due to political instability) high cost or risks associated with FDI. 8 In other words, like other papers on international technology licensing, it is implicit in our analysis that licensing dominates other strategies such as FDI.…”