Modes of Foreign Entry under Asymmetric Information about Potential Technology Spillovers

This paper studies the effect of technology spillovers on the entry decision of a multinational enterprise into a foreign market. Two alternative entry modes for a foreign direct investment are considered: Greenfield investment versus acquisition. We find that with quantity competition a spillover makes acquisitions less attractive, while with price competition acquisitions become more attractive. Asymmetric information about potential spillovers always reduces the number of acquisitions independently of whether the host country or the entrant has private information. Interestingly, we find that asymmetric information always hurts the entrant, while it sometimes is in favor of the host country

External sources of clean technology: evidence from the clean development mechanism

New technology is fundamental to sustainable development. However, inventors from industrialized countries often refuse technology transfer because they worry about reverse-engineering. When can clean technology transfer succeed? We develop a formal model of the political economy of North–South technology transfer. According to the model, technology transfer is possible if (1) the technology in focus has limited global commercial potential or (2) the host developing country does not have the capacity to absorb new technologies for commercial use. If both conditions fail, inventors from industrialized countries worry about the adverse competitiveness effects of reverse-engineering, so technology transfer fails. Data analysis of technology transfer in 4,894 projects implemented under the Kyoto Protocol’s Clean Development Mechanism during the 2004–2010 period provides evidence in support of the model

A newly developed integrative bio-inspired artificial intelligence model for wind speed prediction

Accurate wind speed (WS) modelling is crucial for optimal utilization of wind energy. NumericalWeather Prediction (NWP) techniques, generally used for WS modelling are not only less cost-effective but also poor in predicting in shorter time horizon. Novel WS prediction models based on the multivariate empirical mode decomposition (MEMD), random forest (RF) and Kernel Ridge Regression (KRR) were constructed in this paper better accuracy in WS prediction. Particle swarm optimization algorithm (PSO) was employed to optimize the parameters of the hybridized MEMD model with RF (MEMD-PSO-RF) and KRR (MEMD-PSO-KRR) models. Obtained results were compared to those of the standalone RF and KRR models. The proposed methodology is applied for monthly WS prediction at meteorological stations of Iraq, Baghdad (Station1) and Mosul (Station2) for the period 1977-2013. Results showed higher accuracy of MEMD-PSO-RF model in predicting WS at both stations with a correlation coefficient (r) of 0.972 and r D 0.971 during testing phase at Station1 and Station2, respectively. The MEMD-PSO-KRR was found as the second most accurate model followed by Standalone RF and KRR, but all showed a competitive performance to the MEMD-PSO-RF model. The outcomes of this work indicated that the MEMD-PSO-RF model has a remarkable performance in predicting WS and can be considered for practical applications

How to increase technology transfers to developing countries: a synthesis of the evidence

The existing United Nations Framework Convention on Climate Change (UNFCCC) has failed to deliver the rate of low-carbon technology transfer (TT) required to curb GHG emissions in developing countries. This failure has exposed the limitations of universalism and renewed interest in bilateral approaches to TT. Gaps are identified in the UNFCCC approach to climate change TT: missing links between international institutions and the national enabling environments that encourage private investment; a non-differentiated approach for (developing) country and technology characteristics; and a lack of clear measurements of the volume and effectiveness of TTs. Evidence from econometric literature and business experience on climate change TT is reviewed, so as to address the identified pitfalls of the UNFCCC process. Strengths and weaknesses of different methodological approaches are highlighted. International policy recommendations are offered aimed at improving the level of emission reductions achieved through TT

Strategies of Foreign Direct Investment in the Presence of Technological Spillovers

Dawid H, Zou B. Strategies of Foreign Direct Investment in the Presence of Technological Spillovers. Working Papers in Economics and Management. Vol 12-2013. Bielefeld: Bielefeld University, Department of Business Administration and Economics; 2013.In this paper we present a differential game model of two firms with different technologies producing the same good and selling in the same world market. The firm equipped with advanced technology is deciding whether to outsource parts of its production to the home country of its competitor, where wages and the level of technology are lower. Outsourcing reduces production costs but is associated with spillovers to the foreign competitor. The degree to which the foreign competitor can absorb these spillovers depends on its absorptive effort. Using numerical methods the properties of a Markov Perfect Equilibrium of this game are characterized and the implications of the variation of different key parameters are examined