It is often argued that multinationals are reluctant to transfer technology due to the fear of spillovers. We show that this need not be the case if host country policies like taxation are taken into account. Furthermore, we examine the incentives the multinational and the host country have to...

This paper introduces the time dimension into the precompetitive R&D model, where both demand and spillovers vary over time. The effect of cooperation on R&D depends on a weighted function of spillovers, with the weights being a function of demand levels. The bulk of the incentives for...

This paper provides an empirical assessment of the effect of national and international knowledge spillovers on innovation at a finely defined sectoral level for six major industrialised countries over the period 1981-1995. International spillovers are always found to be effective in increasing...