This paper analyzes a three-stage game where two firms choose (i) their respective technology, by deciding on a level of R&D, (ii) whether this technology is to be used in a domestic or in a local plant and (iii) the quantity produced and sold on the market. If technology transfer costs are...

Multinational enterprises (MNEs) are important in transmitting technology across national borders. Not only do they allow for transfer of technology within the firm, but it is also believed that they are important channels for international R&D spillovers as well. This paper analyzes empirically...