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Jaeyong Song - One of the best experts on this subject based on the ideXlab platform.
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Foreign Direct Investment and the Sourcing of Technological Advantage: Evidence from the Biotechnology Industry
Journal of International Business Studies, 1997Co-Authors: Weijian Shan, Jaeyong SongAbstract:This paper investigates the proposition that foreign direct investment in a high-technology industry is motivated in part by the sourcing of country-specific technological advantages embedded in foreign firms. The empirical findings show that foreign Equity investment is drawn to American biotechnology firms with high levels of patent activity. We suggest that, in the biotechnology industry, foreign direct investment in the form of Equity Participation can be an efficient vehicle for tapping into country-specific, firm-embodied technological advantages.
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Foreign Direct Investment and the Sourcing of Technological Advantage: Evidence from the Biotechnology Industry
Journal of International Business Studies, 1997Co-Authors: Weijian Shan, Jaeyong SongAbstract:This paper investigates the proposition that foreign direct investment in a high-technology industry is motivated in part by the sourcing of country-specific technological advantages embedded in foreign firms. The empirical findings show that foreign Equity investment is drawn to American biotechnology firms with high levels of patent activity. We suggest that, in the biotechnology industry, foreign direct investment in the form of Equity Participation can be an efficient vehicle for tapping into country-specific, firm-embodied technological advantages.© 1997 JIBS. Journal of International Business Studies (1997) 28, 267–284
Arijit Mukherjee - One of the best experts on this subject based on the ideXlab platform.
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Joint Venture Instability Under Entry
International Review of Economics & Finance, 2006Co-Authors: Shantanu Banerjee, Arijit MukherjeeAbstract:Many developing countries are liberalizing their economies to allow higher Equity Participation by the foreign firms. We argue that the possibility of joint venture can reduce the number of technology transfers. Hence, joint venture can reduce the welfare of a host-country by creating higher market-concentration. However, higher profit generation under joint venture encourages the foreign firm to transfer relatively better technology and may make the host-country and the firms better-off under joint venture than licensing. For sufficiently large efficiency-gain, the host-country allows fully owned subsidiary of the foreign firm.
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Foreign Market Entry and Host Country Welfare: A Theoretical Analysis
SSRN Electronic Journal, 2003Co-Authors: Arijit MukherjeeAbstract:Many developing countries are liberalizing their economies to allow higher Equity Participation by the foreign firms. We argue that the possibility of joint venture can reduce the number of technology transfers. Hence, joint venture can reduce the welfare of a host-country by creating higher market-concentration. However, higher profit generation under joint venture encourages the foreign firm to transfer relatively better technology and may make the host-country and the firms better-off under joint venture than licensing. For sufficiently large efficiency-gain, the host-country allows fully owned subsidiary of the foreign firm.
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Technology Transfer under Asymmetric Information: The Role of Equity Participation
Journal of Institutional and Theoretical Economics, 2001Co-Authors: Sugata Marjit, Arijit MukherjeeAbstract:Technological collaboration coupled with Equity Participation improves the quality of transacted technology relative to a situation characterised by a pure technology licensing agreement. Such a result is proved in a model of a signalling game with asymmetric information and threat of imitation. Different contractual arrangements involving Equity Participation with or without up-front fixed fee and/or output-based royalty payments are discussed.
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Technology collaboration and foreign Equity Participation: a theoretical analysis
Review of International Economics, 1998Co-Authors: Sugata Marjit, Arijit MukherjeeAbstract:Technology transfer to the developing nations has been predominantly characterized by technology collaborations between the multinationals and the local firms of these developing countries. When a multinational offers a new technology to a local firm, the firms may have different perceptions regarding the success rate of the technology in the local conditions. This paper discusses various types of contractual arrangements with Equity Participation by the multinational, which dominate pure technology collaboration agreements. Copyright 1998 by Blackwell Publishing Ltd.
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technology collaboration and foreign Equity Participation a theoretical analysis
1997Co-Authors: Sugata Marjit, Arijit MukherjeeAbstract:Technology transfer to the developing nations has been predominantly characterized by technology collaborations between the multinationals and the local firms of the developing countries. When a multinational offers a new technology to a local firm, both firms may have different perceptions regarding the success rate of the technology in the local conditions. We discuss different types of contractual arrangements with Equity Participation by the multinational which dominates pure technology collaboration type agreements.
Toby E. Stuart - One of the best experts on this subject based on the ideXlab platform.
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Network Effects in the Governance of Strategic Alliances
Journal of Law Economics and Organization, 2006Co-Authors: David T. Robinson, Toby E. StuartAbstract:We argue that the stock of prior alliances between participants in the biotechnology sector forms a network that serves as a governance mechanism in interfirm transactions. To test how this network substitutes for other governance mechanisms, we examine how Equity Participation and pledged funding in strategic alliances vary with two features of the way alliance participants are positioned in the network of past deals: proximity, or how close two firms are to one another in the network; and centrality, or how deeply a firm is embedded in the network. As centrality and proximity increase, Equity Participation (measured by size and propensity) diminishes, whereas pledged funding increases. Copyright 2007, Oxford University Press.
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Network Eects in the Governance of Biotech Strategic Alliances
2002Co-Authors: David T. Robinson, Toby E. Stuart, Fred G. Steingraber-a, T. KearneyAbstract:We argue that the stock of prior alliances between participants in the biotechnology sector forms a network that serves as a governance mechanism in inter-firm transactions. To test how this network substitutes for other governance mechanisms, we examine how Equity Participation and pledged funding in strategic alliances vary with two features of the way alliance participants are positioned in the network of past deals: (i) proximity, and (ii) centrality, which measures how deeply a firm is embedded in the network. As centrality and proximity increase, Equity Participation (measured by size and propensity) diminish, while pledged funding increases.
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Financial Contracting in Biotech Strategic Alliances
SSRN Electronic Journal, 2002Co-Authors: David T. Robinson, Toby E. StuartAbstract:We analyze 125 strategic alliance contracts, all of which concern early-stage research at small biotechnology research and development companies. Staged investment is ubiquitous, but solutions to agency problems vary. The cycle of Equity Participation in alliances resembles what we observe in venture capital contracts: they involve convertible Equity and sometimes contain antidilution provisions, warrants, and board seats. Contracts rights vary explicitly with the size of the Equity stake. Contracts contain explicit provisions linking Equity Participation to subsequent initial public offerings and contain clauses designed to insulate both parties from multitasking problems. Contracts often specify provisions that are unobservable or difficult to verify, which suggests a role for expected litigation as an enforcement tool in contract design.
Weijian Shan - One of the best experts on this subject based on the ideXlab platform.
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Foreign Direct Investment and the Sourcing of Technological Advantage: Evidence from the Biotechnology Industry
Journal of International Business Studies, 1997Co-Authors: Weijian Shan, Jaeyong SongAbstract:This paper investigates the proposition that foreign direct investment in a high-technology industry is motivated in part by the sourcing of country-specific technological advantages embedded in foreign firms. The empirical findings show that foreign Equity investment is drawn to American biotechnology firms with high levels of patent activity. We suggest that, in the biotechnology industry, foreign direct investment in the form of Equity Participation can be an efficient vehicle for tapping into country-specific, firm-embodied technological advantages.
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Foreign Direct Investment and the Sourcing of Technological Advantage: Evidence from the Biotechnology Industry
Journal of International Business Studies, 1997Co-Authors: Weijian Shan, Jaeyong SongAbstract:This paper investigates the proposition that foreign direct investment in a high-technology industry is motivated in part by the sourcing of country-specific technological advantages embedded in foreign firms. The empirical findings show that foreign Equity investment is drawn to American biotechnology firms with high levels of patent activity. We suggest that, in the biotechnology industry, foreign direct investment in the form of Equity Participation can be an efficient vehicle for tapping into country-specific, firm-embodied technological advantages.© 1997 JIBS. Journal of International Business Studies (1997) 28, 267–284
Milind Shrikhande - One of the best experts on this subject based on the ideXlab platform.
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Structuring International Cooperative Ventures
Review of Financial Studies, 2002Co-Authors: Thomas H Noe, Michael J Rebello, Milind ShrikhandeAbstract:We examine the effect of bargaining power and informational asymmetry on the design of international cooperative ventures in the presence of restrictions on Equity Participation and investment. When the bargaining advantage rests with the multinational, Equity Participation restrictions can increase the profits to domestic firms and encourage suboptimal investment policies. Overinvestment occurs when the multinational's bargaining advantage is reinforced by an informational advantage, while underinvestment occurs when the domestic firm possesses the informational advantage. In contrast, when the bargaining advantage rests with the domestic firm, Equity Participation restrictions do not affect investment levels. Copyright 2002, Oxford University Press.
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structuring international joint ventures bargaining Equity Participation and private information
2002Co-Authors: Thomas H Noe, Michael J Rebello, Milind ShrikhandeAbstract:We examine the effect of bargaining power and informational asymmetry on the design of international cooperative ventures in the presence of restrictions on Equity Participation and investment. When the bargaining advantage rests with the multinational, Equity Participation restrictions can increase the profits to domestic firms and encourage sub-optimal investment policies. Overinvestment occurs when the multinational's bargaining advantage is reinforced by an informational advantage, while underinvestment occurs when the domestic firm possesses the informational advantage. In contrast, when the bargaining advantage rests with the domestic firm, Equity Participation restrictions do not affect investment levels.
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Structuring International Joint Ventures: Bargaining, Equity Participation, and Private Information
1995Co-Authors: Thomas H Noe, Michael J Rebello, Milind ShrikhandeAbstract:We examine the role of bargaining power, informational asymmetry, and Equity Participation restrictions on the division of the gains from cooperation between multinational and domestic firms. When the bargaining advantage rests with the multinational, Equity Participation restrictions can increase the profits to domestic firms and encourage sub-optimal investment policies. Overinvestment occurs when the multinational's bargaining advantage is reinforced by an informational advantage, while underinvestment occurs when the domestic firm possesses the informational advantage. Equity Participation restrictions, however, do not affect investment policies or the division of gains from joint ventures when the bargaining advantage rests with the domestic firm.