Abstract
This research quantitatively examines knowledge transfer from foreign firms to Japanese firms in petrochemical industry. Especially I focus on licensee's absorptive capacity and form of licensing agreements. I find two points. First, as licensee's absorptive capacity increases, knowledge transfer increases. But beyond some level of the absorptive capacity, knowledge transfer decreases as the absorptive capacity increases. This resuit implies licensee's absorptive capacity relates to not only absorption of technology but also opportunism. Secondly, the effect of this opportunism on knowledge transfer depends on the establishment of JV. In non-JV pairs knowledge transfer decreases, but in JV pairs it doesn't decrease. This is because JV has a mechanism of controlling opportunism of partners.
