ABSTRACT
In the present note we draw attention to a neglected property of the standard Heckscher±Ohlin model of international trade. It is shown that if a country enjoys an absolute technical advantage in each of its two industries then it has an incentive to transfer technology to the other country, the incentive persisting until the technical advantage disappears in at least one industry. Moreover, the incentive exists both for private (®rm to ®rm) transfers and for public (government to government) transfers.
