IDEAS home Printed from https://ideas.repec.org/a/aic/journl/y2009v56p397-419.html
   My bibliography  Save this article

Technology, foreign-owned firms and competitiveness in the middle-income countries

Author

Listed:
  • Isabel Alvarez

    (Universidad Complutense de Madrid)

  • Georgina Maldonado

    (Universidad Complutense de Madrid)

Abstract

Some economies inside the diverse group of middle-income countries (MIC) have shown an ac-tive behavior in exports of technology-intensive goods that is strictly better than the group average. Among the factors explaining such a behavior we find the national technological capabilities that af-fect the dynamism of their productive and trade structure generating competitiveness gains. Another element is the potential impact that foreign direct investments (FDI) flows generate in those econo-mies since foreign owned firms have contributed to the industrialization and modernization of their productive systems. In this paper we show a descriptive analysis of those competitive factors through the Global Competitiveness Index from the World Economic Forum and the Enterprise Surveys form the World Bank, with the aim of highlighting the relative importance of them and the differences across middle-income economies.

Suggested Citation

  • Isabel Alvarez & Georgina Maldonado, 2009. "Technology, foreign-owned firms and competitiveness in the middle-income countries," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 56, pages 397-419, November.
    • Handle: RePEc:aic:journl:y:2009:v:56:p:397-419
    as

    Download full text from publisher

    File URL: http://anale.feaa.uaic.ro/anale/resurse/32_E01_ALvarez.pdf
    Download Restriction: no
    File URL: http://anale.feaa.uaic.ro/anale/en/Arhiva%202009%20Alvarez_Maldonado/288
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jan Fagerberg & Martin Srholec, 2009. "Innovation Systems, Technology and Development: Unpacking the Relationships," Chapters, in: Bengt-Åke Lundvall & K. J. Joseph & Cristina Chaminade & Jan Vang (ed.), Handbook of Innovation Systems and Developing Countries, chapter 4, Edward Elgar Publishing.
    2. Rasiah, Rajah, 2003. "Foreign ownership, technology and electronics exports from Malaysia and Thailand," Journal of Asian Economics, Elsevier, vol. 14(5), pages 785-811, October.
    3. Lance Eliot Brouthers & Edward O'Donnell & John Hadjimarcou, 2005. "Generic Product Strategies for Emerging Market Exports into Triad Nation Markets: A Mimetic Isomorphism Approach," Journal of Management Studies, Wiley Blackwell, vol. 42(1), pages 225-245, January.
    4. Sanjaya Lall, "undated". "Implications Of Cross-Border Mergers and Acquisitions By TNCs in Developing Countries: A Beginner's Guide," QEH Working Papers qehwps88, Queen Elizabeth House, University of Oxford.
    5. Sanjaya Lall, 1996. "Learning from the Asian Tigers," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-38989-2, December.
    6. Castellacci, Fulvio, 2008. "Technology clubs, technology gaps and growth trajectories," Structural Change and Economic Dynamics, Elsevier, vol. 19(4), pages 301-314, December.
    7. Isabel Álvarez & Antonio Fonfría Mesa & Raquel Marín, 2005. "The role of networking in the competitiveness profile of Spanish firms," Working Papers del Instituto Complutense de Estudios Internacionales 0504, Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales.
    8. Ram Mudambi, 2008. "Location, control and innovation in knowledge-intensive industries," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 699-725, September.
    9. Michael Hobday, 1995. "Innovation In East Asia," Books, Edward Elgar Publishing, number 226.
    10. Tony S. Frost, 2001. "The geographic sources of foreign subsidiaries' innovations," Strategic Management Journal, Wiley Blackwell, vol. 22(2), pages 101-123, February.
    11. Philip McCann & Ram Mudambi, 2005. "Analytical Differences in the Economics of Geography: The Case of the Multinational Firm," Environment and Planning A, , vol. 37(10), pages 1857-1876, October.
    12. Narula, Rajneesh & Wakelin, Katharine, 1998. "Technological competitiveness, trade and foreign direct investment," Structural Change and Economic Dynamics, Elsevier, vol. 9(3), pages 373-387, September.
    13. Mowery, David C & Oxley, Joanne E, 1995. "Inward Technology Transfer and Competitiveness: The Role of National Innovation Systems," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 67-93, February.
    14. Rajneesh Narula & John Dunning, 2000. "Industrial Development, Globalization and Multinational Enterprises: New Realities for Developing Countries," Oxford Development Studies, Taylor & Francis Journals, vol. 28(2), pages 141-167.
    15. Rodrik, Dani, 1996. "Coordination failures and government policy: A model with applications to East Asia and Eastern Europe," Journal of International Economics, Elsevier, vol. 40(1-2), pages 1-22, February.
    16. Sanjaya Lall, 2001. "Competitiveness, Technology and Skills," Books, Edward Elgar Publishing, number 2298.
    17. Fagerberg, Jan & Srholec, Martin, 2008. "National innovation systems, capabilities and economic development," Research Policy, Elsevier, vol. 37(9), pages 1417-1435, October.
    18. Cantwell, John, 1995. "The Globalisation of Technology: What Remains of the Product Cycle Model?," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 155-174, February.
    19. Bozeman, Barry, 2000. "Technology transfer and public policy: a review of research and theory," Research Policy, Elsevier, vol. 29(4-5), pages 627-655, April.
    20. Lucia Piscitello, 2004. "Corporate diversification, coherence and economic performance," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 13(5), pages 757-787, October.
    21. Kim,Linsu & Nelson,Richard R. (ed.), 2000. "Technology, Learning, and Innovation," Cambridge Books, Cambridge University Press, number 9780521770033.
    22. Lundvall, Bengt-Ake & Johnson, Bjorn & Andersen, Esben Sloth & Dalum, Bent, 2002. "National systems of production, innovation and competence building," Research Policy, Elsevier, vol. 31(2), pages 213-231, February.
    23. Uchida, Yuichiro & Cook, Paul, 2005. "The Transformation of Competitive Advantage in East Asia: An Analysis of Technological and Trade Specialization," World Development, Elsevier, vol. 33(5), pages 701-728, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Álvarez, Isabel & Marín, Raquel, 2010. "Entry modes and national systems of innovation," Journal of International Management, Elsevier, vol. 16(4), pages 340-353, December.
    2. Marina Papanastassiou & Robert Pearce & Antonello Zanfei, 2020. "Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: A review of the literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 623-664, June.
    3. Sanjaya Lall, 2001. "National strategies for technology adoption in the industrial sector: Lessons of recent experience in the developing regions," Human Development Occasional Papers (1992-2007) HDOCPA-2001-08, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    4. Alvarez, Isabel & Fischer, Bruno & Natera, José Miguel, 2013. "Internationalization and technology in MERCOSUR," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    5. Barnard, Helena, 2010. "Overcoming the liability of foreignness without strong firm capabilities -- the value of market-based resources," Journal of International Management, Elsevier, vol. 16(2), pages 165-176, June.
    6. Isabel Alvarez & Raquel Marin & Francisco J. Santos-Arteaga, 2015. "Foreign Direct Investment Entry Modes, Development and Technological Spillovers," Manchester School, University of Manchester, vol. 83(5), pages 568-603, September.
    7. Keun Lee, 2009. "How Can Korea be a Role Model for Catch-up Development?: A 'Capability-based View'," WIDER Working Paper Series RP2009-34, World Institute for Development Economic Research (UNU-WIDER).
    8. Athreye, Suma & Cantwell, John, 2007. "Creating competition?: Globalisation and the emergence of new technology producers," Research Policy, Elsevier, vol. 36(2), pages 209-226, March.
    9. Doren Chadee & Billy Pang, 2008. "Technology strategy and performance: a study of information technology service providers from selected Asian countries," Service Business, Springer;Pan-Pacific Business Association, vol. 2(2), pages 109-126, June.
    10. Wang, Yuandi & Zhou, Zhao, 2013. "The dual role of local sites in assisting firms with developing technological capabilities: Evidence from China," International Business Review, Elsevier, vol. 22(1), pages 63-76.
    11. Andrea Coveri & Antonello Zanfei, 2023. "Who wins the race for knowledge-based competitiveness? Comparing European and North American FDI patterns," The Journal of Technology Transfer, Springer, vol. 48(1), pages 292-330, February.
    12. Helena Barnard & Robin Cowan & Moritz Müller, 2016. "On the value of foreign PhDs in the developing world: Training versus selection effects," Working Papers of BETA 2016-04, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    13. Rajneesh Narula, 2015. "The Importance of Domestic Capabilities for FDI-assisted Development: Lessons from Asia and Latin America," John H Dunning Centre for International Business Discussion Papers jhd-dp2015-05, Henley Business School, University of Reading.
    14. Chang-Yung Liu & Jie Yang, 2003. "A Comparative Analysis On Technology Innovation & Diffusion System And Industrial Innovation Between Taiwan And Mainland China," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 7(04), pages 443-473.
    15. Fagerberg, Jan & Srholec, Martin & Verspagen, Bart, 2010. "Innovation and Economic Development," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 833-872, Elsevier.
    16. Narula, Rajneesh. & Marín, Anabel., 2005. "Foreign direct investment spillovers, absorptive capacities and human capital development : evidence from Argentina," ILO Working Papers 993782123402676, International Labour Organization.
    17. Barnard, H. & Cowan, R. & Müller, M., 2012. "Global excellence at the expense of local diffusion, or a bridge between two worlds? Research in science and technology in the developing world," Research Policy, Elsevier, vol. 41(4), pages 756-769.
    18. Uchida, Yuichiro & Cook, Paul, 2004. "The Transformation of Competitive Advantage in East Asia: An Analysis of Technological and Trade Specialisation," Centre on Regulation and Competition (CRC) Working papers 30636, University of Manchester, Institute for Development Policy and Management (IDPM).
    19. Liu, Ting & Li, Xizhuo, 2022. "How Do MNCs Conduct Local Technological Innovation in a Host Country? An Examination From Subsidiaries' Perspective," Journal of International Management, Elsevier, vol. 28(3).
    20. Rasiah, Rajah, 2002. "TRIPs and Capability Building in Developing Economies," UNU-INTECH Discussion Paper Series 2002-01, United Nations University - INTECH.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aic:journl:y:2009:v:56:p:397-419. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sireteanu Napoleon-Alexandru (email available below). General contact details of provider: https://edirc.repec.org/data/feaicro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.