and firms granting licenses have tried to protect themselves against this. The way they have approached this has been by defining In the actual agreement the arbitrator to whtch violations of & eontractual agreement must be referred. Many authors have analysed this type of clause(3tl which naturally tends to protect the Interest of the firm granting the license. In the 86 agr.eements ana I ysed. near I y 90 percent of contracts state that arbitration wll I be carr4ed out In the I !censor's country. while In only 2 agreements <2.31 of the whole) arbitration will be carried out by a tribunal Independent of the recipient. Certainly alI our earlier analyses were based on legal clauses which may, In practice. be superceded and be no more than fntentlons to restrict firms taking out licenses. with a much less rigid effect than would appear. In any case, returning to the two opposing points of view described In the Introduction. there can be little doubt that the types of restrictive clause Incorporated In licensing agreements lead to question the possible appropriation of Improvements achieved locally. Imported technIques and the entry of transnational f lrms may complement and provide an Incentive to local creative effort. The crux of the matter Is not only whether or not It Is possible to generate lnnovat Ions at the local level -the agreements themselves anticipate this -but whether the recipient Is able to appropriate and commercialize the Improvements he mayh achieve while he Is assimilating and using Imported techniques. If we restrict ourselves to clauses In t.be contract, It Is difficult to be optimistic about the future of the recipient firm. and even more so about the appropriation .of local capabilities. But the technology Is only part of the picture. 31. e.g., among others C. Valtsos, Commerclallzaclon de 
**Analysis**
The text discusses licensing agreements and the clauses that protect the interests of firms granting licenses, specifically in the context of technology transfer. It highlights the potential for restrictive clauses to limit the ability of local firms to appropriate and commercialize improvements achieved through the use of imported techniques. The text also touches on the importance of local creative effort and the role of technology in complementing and incentivizing innovation. Based on this analysis, it is likely that the text falls under a category related to economic development and technology.

**Category**
Industry, International trade, Science and technology