International Knowledge Transfers and Competitiveness: Canada as a Case Study
Exports, direct investment and licences are all substitute ways for foreign manufacturers to access Canadian markets. The particular combination of them used by a firm depends mainly on which provides the largest profit and rent in the host country's prevailing economic environment. All three methods provide Canada with knowledge about existing as well as new management and technological practices which stimulate productivity, competitiveness and growth. However, each has different effects and implications for Canada's stock of intellectual capital.