This paper discusses the influence of time inconsistency problem on technology-leading firms' choice between in-house production and technology transfer. Because of incredibility of innovator's commitment of not exporting after licensing, she may not be able to extract rent from licensing as much as when she could commit credibly. Facing this distortion, she chooses in-house production when the...

The possibility of this virtual “free lunch” has kindled interest in technology transfer. Inevitably, issues of IPR protection have come to the fore.1 There is a large body of literature on the subject, too large to even attempt to review and classify here. My objective therefore is to suggest fruitful areas for empirical research in developing countries on the relationship between IPRs and tec...