INTRAFIRM VERSUS LICENSED TRANSFERS OF MACHINE-TOOL TECHNOLOGY

This paper uses survey and interview evidence from the USA, the UK and Germany to examine transfers of machine-tool technology from one location to another through both internalized and licensed transactions. It shows that both forms of transfer are common in the industry, but that they play very different roles with respect to their place in the companies' operations and the nature of the technologies transferred. Internalized transfers are largely directed towards major markets, including the domestic market. They are less frequently associated with labour cost reduction, and lead to the transfer of a wide and complex range of information. A small proportion of licensed transfers are close substitutes for internalized transactions but in general licensing is chosen as a 'second-best' option for use where constraints dictate the course of action. Licensing agreements involve much more limited transfers of technology.