By David J. Teece
The foreign move of know-how is without doubt one of the most vital beneficial properties of the worldwide financial system. even if, the literature on it truly is sparse. This ebook encapsulates the author's contributions to this box over the past 3 many years and offers insights into the way, mechanisms, and price of expertise move throughout nationwide limitations and the consequences for (the concept of) the foreign company.
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In general, it can be said that the goodness of fit is acceptable, although in each case the number of observations is very small. Using the estimated value of
J. Teece 20 The hypotheses are to some extent borne out by the data, but the small sample size must counsel caution in the interpretation of these results.! In chemicals and petroleum, the results indicate that transfers to government enterprises, and transfers before first commercialisation, involve su bstantial extra costs. Furthermore, both Ni and P; are significant in the machinery category, despite the small number of observations, yet they are insignificant in chemicals apd petroleum refining, where there are more than twice as many degrees of freedom.
For example. differences in the market size between home and abroad will induce scale adaptations to the plant; and differences in ~aterials inputs. operator skills and engineering standards will frequently necessitate design changes in the process and/or the product. The implementation of design changes will produce uncertain responses in the quality and cost of the final product. Although the uncertainties generated are undoubtedly modest compared to those encountered during the original product or process development.