[PDF] Technological Leadership And Foreign Investors Choice Of Entry Mode eBook

Author : Beata K. Smarzynska Javorcik
Publisher : World Bank Publications
Page : 38 pages
File Size : 33,53 MB
Release : 2000
Category : International business enterprises
ISBN :

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Developing country governments tend to favor joint ventures over other forms of foreign direct investment, believing that local participation facilitates the transfer of technology and marketing skills. However, foreign investors who are technological or marketing leaders in their industries are more likely to invest in wholly owned projects than to share ownership. Thus in R&D-intensive sectors joint ventures may offer less potential for transferring technology and marketing techniques than wholly owned subsidiaries.

Author : Beata Smarzynska Javorcik
Publisher :
Page : 32 pages
File Size : 20,22 MB
Release : 2016
Category :
ISBN :

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Developing country governments tend to favor joint ventures over other forms of foreign direct investment, believing that local participation facilitates the transfer of technology and marketing skills. However, foreign investors who are technological or marketing leaders in their industries are more likely to invest in wholly owned projects than to share ownership. Thus in Ramp;D-intensive sectors joint ventures may offer less potential for transferring technology and marketing techniques than wholly owned subsidiaries.Developing country governments tend to favor joint ventures over other forms of foreign direct investment, believing that local participation facilitates the transfer of technology and marketing skills. Smarzynska assesses joint ventures' potential for such transfers by comparing the characteristics of foreign investors engaged in joint ventures with those of foreign investors engaged in wholly owned projects in transition economies in the early 1990s.Unlike the existing literature, Smarzynska focuses on intra-industry differences rather than interindustry differences in Ramp;D and advertising intensity. Empirical analysis shows that foreign investors who are technological or marketing leaders in their industries are more likely to invest in wholly owned projects than to share ownership. This is true in high- and medium-technology sectors but not in industries with low Ramp;D spending.Smarzynska concludes that it is inappropriate to treat industries as homogeneous in investigating modes of investment. She also suggests that in sectors with high Ramp;D spending joint ventures may present less potential for transfer of technology and marketing techniques than wholly owned subsidiaries.This paper - a product of Trade, Development Research Group - is part of a larger effort in the group to study the contribution of trade and foreign direct investment to technology transfer.

Author : Beata K. Smarzynska
Publisher :
Page : 31 pages
File Size : 37,87 MB
Release : 2000
Category : International business enterprises
ISBN :

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Developing country governments tend to favor joint ventures over other forms of foreign direct investment, believing that local participation facilitates the transfer of technology and marketing skills. However, foreign investors who are technological or marketing leaders in their industries are more likely to invest in wholly owned projects than to share ownership. Thus in R & D-intensive sectors joint ventures may offer less potential for transferring technology and marketing techniques than wholly owned subsidiaries.

Author : Beata Smarzynska Javorcik
Publisher :
Page : 0 pages
File Size : 42,91 MB
Release : 2014
Category :
ISBN :

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Developing country governments tend to favor joint ventures (JVs) over other forms of foreign direct investment, since they believe that local participation facilitates transfer of technology and marketing skills. This study assesses the potential of JVs for such transfers by comparing characteristics of foreign investors engaged in JVs and wholly owned projects in transition economies in the early 1990s. In contrast to the existing literature, it focuses on intra- rather than interindustry differences in R&D and advertising intensities. The empirical analysis shows that foreign investors that are technological or marketing leaders in their industries are more likely to engage in wholly owned projects than to share ownership. These effects are present in high and medium technology sectors but not in low R&D industries. The study concludes that it is not appropriate to treat industries as homogenous in investigations of investment modes. It also suggests that JVs in high R&D sectors may present a lower potential for transfer of technology and marketing techniques than wholly owned subsidiaries.

Author : Kamal Saggi
Publisher : World Bank Publications
Page : 37 pages
File Size : 44,72 MB
Release : 2003
Category : Competition, International
ISBN :

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How does the preferred entry mode of foreign investors depend upon their technological capability relative to that of their rivals? This paper develops a simple duopoly model of mode choice and evaluates its main testable implication using data on foreign investors in Eastern European countries and the successor states of the Soviet Union. The theoretical model captures the following intuitive trade-off: while a joint venture (JV) can help a foreign investor secure a better position in the product market vis-a-vis its rival, it also requires that profits be shared with the local partner. The model predicts that the efficient foreign investor is less likely to choose a JV and more likely to enter directly. Our empirical analysis supports this prediction: foreign investors with more sophisticated technologies and marketing skills (relative to other firms in their industry) tend to prefer direct entry to joint ventures. This empirical finding is robust to controlling for host country specific effects and other commonly cited determinants of entry mode.

Author : Kamal Saggi
Publisher :
Page : pages
File Size : 13,59 MB
Release : 2013
Category :
ISBN :

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How does the preferred entry mode of foreign investors depend on their technological capability relative to that of their rivals? The authors develop a simple model of entry mode choice and evaluate its main testable implication using data on foreign investors in Eastern European countries and the successor states of the former Soviet Union. The model considers competition between two asymmetric foreign investors and captures the following tradeoffs: while a joint venture helps a foreign investor secure a better position in the product market compared with its rival, it also requires that profits be shared with the local partner. The model predicts that the efficient foreign investor is less likely to choose a joint venture and more likely to enter directly relative to the inefficient investor. The authors' empirical analysis supports this prediction: foreign investors with more sophisticated technologies and marketing skills (relative to other firms in their industry) tend to prefer direct entry to joint ventures. This empirical finding is robust to controlling for host country-specific effects and other commonly cited determinants of entry mode.

Author : Bernard M. Hoekman
Publisher : World Bank Publications
Page : 370 pages
File Size : 37,22 MB
Release : 2006-04-27
Category : Business & Economics
ISBN : 0821361260

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The importance of international technology diffusion (ITD) for economic development can hardly be overstated. Both the acquisition of technology and its diffusion foster productivity growth. Developing countries have long sought to use both national policies and international agreements to stimulate ITD. The 'correct' policy intervention, if any, depends critically upon the channels through which technology diffuses internationally and the quantitative effects of the various diffusion processes on efficiency and productivity growth. Neither is well understood. New technologies may be embodied in goods and transferred through imports of new varieties of differentiated products or capital goods and equipment, they may be obtained through exposure to foreign buyers or foreign investors or they may be acquired through arms-length trade in intellectual property, e.g., licensing contracts. 'Global Integration and Technology Transfer' uses cross-country and firm level panel data sets to analyze how specific activities exporting, importing, FDI, joint ventures impact on productivity performance.

Author : Howard J. Shatz
Publisher : World Bank Publications
Page : 34 pages
File Size : 34,74 MB
Release : 2000
Category : Debt Markets
ISBN :

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Multinationals have become increasingly important to the world economy. Overseas production by U.S. affiliates is three times U.S. exports, for example. Who is investing where, for sales where?

Author : Aaditya Mattoo
Publisher : World Bank Publications
Page : 42 pages
File Size : 25,51 MB
Release : 2001
Category : Business enterprises, Foreign
ISBN :

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When technology transfer is costly, a foreign firm and host country government may differ in their preferences over direct entry and acquisition. Government intervention could help induce the socially preferred choice.

Author : Harry G. Broadman
Publisher : World Bank Publications
Page : 24 pages
File Size : 27,70 MB
Release :
Category :
ISBN :

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The absence of new business in Russia is striking. Reforms to make Russia more competitive should start with eliminating regulatory and institutional barriers to the entry of new competitors.