Acquisitions versus licensing agreements as vehicles for technology transfer. (28th January 2010)

• Record Type: Journal Article
• Authors: Forsans, Nicolas; Balasubramanyam, V.N.
• Is Part Of: European journal of international management. Volume 4:Number 1/2(2010)
• Page Start: 48
• Page End: 55
• Publication Date: 2010-01-28
• Subjects: technology licensing agreements -- royalties -- acquisitions -- distortion-free -- technology transfer -- technology acquisition -- technology know-how; Management -- Periodicals; Organizational behavior -- Periodicals; International business enterprises -- Management -- Periodicals; Globalization -- Periodicals; 658.005
• Languages: English
• ISSNs: 1751-6757

Abstract

Traditionally, emerging economies have sought to acquire technology and know-how from inward FDI and/or technology licensing agreements. In the recent past, countries such as India and Brazil followed the lead of Japan and resorted to technology licensing agreements in a major way for their requirements of technology and know-how. In recent years, several emerging economies, with India and China being the most prominent, have acquired foreign firms with acquisition of technology and know-how as one of the principal motives for such overseas investments. This paper argues that such overseas acquisitions are a much more efficient and inexpensive source of technology and know-how for countries such as India than licensing agreements.