The transfer of U.S. technology abroad

Abstract The causes of the transfer of technology between countries is now seen as an important dimension of the diffusion of new products and processes. Despite its obvious importance, there has been little empirical research investigating the international transfer of technology, although the work of Schiffel and Kitti (Research Policy 7 (1978)) provides a useful foundation on which to build. The research reported below tests the hypothesis that the transfer of technology between countries, as measured by the movement of patented invention, is influenced by both supply side and demand side factors. The principal variables are: patenting activity in the country of origin; the size of the recepient economy; international trade in goods and services; and the operations of multinational producing enterprises. These vaiables explain most of the variation across countries in the transfer of U.S. technology abroad. The worldwide distribution of U.S. based multinational enterprises appear to play an important part in explaining U.S. technology tranfer. On the other hand, the remaining international differences in patent law do not seem to significantly affect patent flows between countries.