We examine the extent to which developing countries that do little, if any, research and development themselves benefit from Ramp;D that is performed in the industrial countries. By trading with an industrial country that has a large quot;stock of knowledgequot; from its cumulative Ramp;D...

Vertical international technology transfer may differ substantially from the horizontal technology transfer emphasized in the literature. In this model, a downstream firm benefits from the diffusion of knowledge it transfers to a developing country firm because diffusion increases demand for its...