Journal of International Business Studies

, Volume 16, Issue 2, pp 5–21

Key Characteristics in the Choice of International Technology Transfer Mode

  • W. H. Davidson
  • Donald G. McFetridge


The choice between licensing and direct investment as a vehicle for international technology transfer is hypothesized to be related to characteristics of the individual technology, parent corporation, and the host country involved in the transfer. A set of hypotheses regarding these relationships are developed and tested in a logit statistical model for a sample of 1,226 technology transfers. We find that hypotheses regarding the effects of technology and parents characteristics are strongly supported by this analysis; hypotheses regarding the effect of host country characteristics on transfer patterns receive mixed support.


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Copyright information

© Academy of International Business 1985

Authors and Affiliations

  • W. H. Davidson
    • 1
  • Donald G. McFetridge
    • 2
  1. 1.University of Virginia
  2. 2.Carleton University

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