Trading Technology: Multinationals Lead the Way

The global spread of technology can improve nations’ productivity and growth. Oftentimes, multinational companies are the ones that trade or carry technology across borders. To better understand this phenomenon, Pedro Mendi has studied how Spanish multinationals transfer technology to their subsidiaries. His paper, “Contracting for the Transfer of Technology Within Multinational Corporations: Empirical Evidence From Spain,” sheds light on important considerations such as contracts, methods of payment and royalty rates.

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