Technology collaboration and foreign equity participation: a theoretical analysis

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.