The economics of tacit knowledge in patent based technology transfer agreements

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Analysis reveals economic inefficiencies from tacit knowledge exclusion in technology transfers, suggesting reforms.

Excluding tacit knowledge leads to economic inefficiencies in technology transfers, especially affecting implementation.
Without tacit knowledge transfer, firms face increased dependency on licensors, leading to prolonged inefficiencies.
The paper advocates for structured learning provisions to embed tacit knowledge into technology agreements for better outcomes.
Policy incentives and collaborative arrangements are essential reforms to address the knowledge transfer gap.

Daga et al. (2025) studied this question.

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