Doctoral Dissertation Research in Economics: International Technology Transfers: Adoption or Imitation

Innovation and commercialization of technology are the sources of firms’ competitive advantage and countries’ economic growth. Hence, firms and countries compete and cooperate over frontier technologies through various channels. As geopolitical tension and inequality among countries rise, more research on such interactions in the global economy is needed.

This research delves into the dynamics of international technology transfer, specifically focusing on its two major channels: technology imitation and technology adoption. Imitation is unauthorized replication of existing technologies without compensating the innovators, while adoption means legal acquisition of technologies through licensing agreements.

These two distinct channels of international technology transfer not only coexist but also interact with each other, shaping the growth and development of countries, and consequently the global economy. This study utilizes unique data on imitation and adoption, and investigates the interplay between these two channels. The derived results will provide important policy implications.

First, by documenting how different industries use different modes of technology transfer, the research can inform industrial policy, particularly on promoting innovations. Second, it will help both leader and follower countries better understand the relative costs and benefits of the two channels of technology transfer. Third, by shedding light on the global competition and cooperation in the market for technology, it will help devise more efficient and compatible institutions, including intellectual property (IP) systems.

Such institutions can better satisfy various needs of countries and reduce tension between developed and developing countries.

This project starts by constructing a unified endogenous growth model to theoretically explain the mechanisms and assess the impacts of technology adoption and imitation. This framework disentangles the economic forces at play and offers a nuanced understanding of how these dynamic decisions of firms and countries' policies shape their growth trajectories.

Next, on the empirical side, the researchers will utilize two proprietary datasets on global patent litigations and patent licensing agreements at the patent- and firm-levels to offer a set of new facts to the field. By taking such direct measures with a granular approach, this research can enrich the understanding of technology transfer patterns across a broad set of developed and developing countries, a critical aspect in today’s highly globalized economy.

Lastly, employing a quantitatively-oriented approach, the research will enable realistic assessment of various hypothetical policies, which provides guidance on the optimal industrial innovation subsidies and international agreements of IP protection.

This award reflects NSF's statutory mission and has been deemed worthy of support through evaluation using the Foundation's intellectual merit and broader impacts review criteria.