We construct an oligopoly model in which a multinational firm has a superior technology compared to local firms in the host country. Workers employed by the multinational acquire knowledge of its superior technology and can spread their knowledge to host firms by switching employers. The...

The basic competitive model with freely available technology is suited for static industries but misleading as applied to major innovative economies for which development of new technologies equals in magnitude around 10% of gross domestic investment. We distinguish free generic technology from...