The multinational enterprise as a source of international knowledge flows: Direct evidence from Italy

Article OPEN
Nigel Driffield ; James H Love ; Stefano Menghinello (2010)

This paper examines the determinants of technology transfer between parent firms and their international affiliates, and of knowledge spillovers from those affiliates to host-country firms. Using a unique data set of foreign multinational enterprise (MNE) affiliates based in Italy, we find that affiliate investment in R&D and investment in capital-embodied technology plays a significant role in determining the nature of intra-firm technology flows. However, the basis for any spillovers arising from MNE affiliates does not originate from codified knowledge associated with R&D, but rather from the productivity of the affiliate.
  • References (13)
    13 references, page 1 of 2

    Andersson U, Forsgren M, & Holm U. 2007. Balancing subsidiary influence in the federative MNC: a business network view. Journal of International Business Studies, 38: 802-818

    Andersson U, Forsgren M, & Holm U. 2001. Subsidiary Embeddedness and Competence Development in MNCs - A Multi-Level Analysis. Organization Studies, 22: 1013-1034.

    Andersson U, Bjorkman I & Forsgren M. 2005. Managing subsidiary knowledge creation: The effect of control mechanisms on subsidiary local embeddedness. International Business Review, 14: 521-538 Bell M & Marin A. 2004. Where do foreign direct investment-related technology spillovers come from in emerging economies? An exploration of Argentina in the 1990s. European Journal of Development Research, 16: 653-686.

    Blomström, M. & Kokko, A. 1998. Multinational Corporations and Spillovers. Journal of Economic Surveys, 12: 247-77.

    Caves, R. 1996. Multinational Enterprise and Economic Analysis. Cambridge: Cambridge University Press.

    Cohen W M & Levinthal D A. 1989. Innovation and learning: the two faces of R&D. Economic Journal, 99: 569-596.

    Driffield, N. 2001. The impact on domestic productivity of inward investment in the UK. The Manchester School, 69:103-119.

    Driffield N & Love J H. 2007. Linking FDI Motivation and Host Economy Productivity Effects: Conceptual and Empirical Analysis. Journal of International Business Studies, 38: 460-473.

    Ito B & Wakasugi R. 2007. What factors determine the mode of overseas R&D by multinationals? Empirical evidence. Research Policy, 36: 1275-1287.

    Haskel J, Pereira J E, Slaughter S C & Matthew J. 2007. Does Inward Foreign Direct Investment Boost the Productivity of Domestic Firms. Review of Economics and Statistics, 89: 482-496.

  • Similar Research Results (1)
  • Metrics
    No metrics available
Share - Bookmark