Globalization Chair : Policy brief: Collaboration in Technology and Multinational Production Choices

Collaboration in Technology and Multinational Production Choices

In this policy brief, Sophia Praetorius explains how technology sharing and collaboration significantly impact global manufacturing decisions. Her study shows that conventional models overlook a crucial reality: manufacturing plants can’t produce every product without the right technology platforms. This limitation increases production costs by nearly 25% compared to what traditional models predict. The study demonstrates that when companies share technology platforms with each other, they reduce costs, offer more product variety, and ultimately benefit consumers. The research also examines how technology-focused policies (like export restrictions on specific technologies) compare to traditional trade measures such as tariffs. While both approaches can cause similar overall economic shifts, technology policies affect different companies and countries more selectively. For example, restricting US technology exports particularly impacts US-owned factories abroad rather than all foreign producers equally. These findings highlight why policymakers need to consider technology constraints and collaboration when designing trade and industrial policies for today’s interconnected global supply chains.