It is difficult, however, to draw firm conclusions
from the results for LICENSE, although they seem to
confirm some of our hypotheses. As discussed earlier,
the crosscountry differences in licensing intensity
may be caused mainly by differences in the industry
distribution of affiliates, and not by our explanatory
variables. The observed effects of competition, education,
and requirements may therefore be related to
decisions about industry localization rather than to the
determinants of the affiliates’ technology imports.