ABSTRACT
In standard accounts of international technology transfer, strong patent protection induces innovative firms to license their technology to foreign entities. Such technology transfer is particularly important to developing countries, which rely on foreign innovations to build domestic innovative capacity. Patents and licenses, however, frequently do not convey all of the technical knowledge needed to practice an invention effectively in industrial settings. In particular, patents often do not disclose invention-related tacit knowledge and trade secrets held by innovators. Conveying such knowledge to foreign entities is difficult and often requires direct organizational connections between innovators and technology adopters. Drawing on the theory of relational contracts, this symposium Article shows that rather than operating as one-off patent licenses, international transfers of patented technology often unfold as long-term relationships that enable intensive knowledge transfer. This Article examines these dynamics in the context of the global biopharmaceutical industry through case studies of transfers between innovators and contract development and manufacturing organizations (CDMOs) around the world. It concludes by exploring the theoretical and policy implications of this relational model of international technology transfer, particularly for developing countries seeking greater access to foreign technical knowledge.
Lee, Peter, Relational Contracting and International Technology Transfer (June 1, 2025), 76 Case Western Reserve Law Review (forthcoming 2026).
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