Economic feasibility of technology export

There are fewer barriers and constraints to the international movement of technology compared to the movement of goods and capital. Therefore, it is easier to carry out external expansion by selling a license abroad than to achieve the development of a new market by exporting products produced with the help of new technology or with the help of foreign investment. In other words, the transfer of new technology abroad acts as a form of struggle for foreign commodity markets, allowing to bypass customs and other barriers. Multinational companies prefer to sell new technologies to their foreign subsidiaries or subsidiaries , rather than to independent firms, even domestic ones. This is explained by the fact that a multinational company in such sales does not lose the monopoly right to use new technologies, excludes the possibility of leakage of production secrets and turns the buyer into a serious competitor. The sale of technologies abroad is often accompanied by additional supplies. raw materials, equipment, semi-finished products, etc. Consequently, the seller of technologies gets the opportunity to increase output for export. The benefit derived by the firm-seller of new technologies is called the escort effect. Often, only by selling a new technology abroad can a firm gain access to the innovation it needs, which is available to a foreign partner. Such counter-licensing or cross-licensing is typical for firms that carry out extensive research and development work and are leaders in the development of some direction of development of science and technology. Typically, such firms operate in industries with frequently changing technology and producing many types of products (for example, the chemical and electrical industries).