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Local technological competence and asset-seeking FDI: an empirical study of manufacturing and wholesale affiliates in Sweden

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  • Ivarsson, Inge
  • Jonsson, Thommy

Abstract

This paper focuses on asset-seeking FDI where foreign TNCs tap into localised technological sources in order to augment their own firm-specific competencies. We use unique firm-level data from majority-owned foreign affiliates (MOFAs) located in West Sweden and investigate their technology development activities and to what purposes this is being put to use. The findings indicate that in a substantial number of MOFAs, the operations are part of an asset-seeking strategy, where the technological competence generated through MOFAs' internal R&D operations, as well as through inter-firm collaboration with local business partners, especially customers, are not only aimed at local market adaptation, but also exploited internationally. Among manufacturing MOFAs this takes the form of export production, as well as a geographical transfer of technology to other corporate units, while among MOFAs engaged in the wholesale of industrial products, it basically takes the latter form.

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  • Ivarsson, Inge & Jonsson, Thommy, 2003. "Local technological competence and asset-seeking FDI: an empirical study of manufacturing and wholesale affiliates in Sweden," International Business Review, Elsevier, vol. 12(3), pages 369-386, June.
    • Handle: RePEc:eee:iburev:v:12:y:2003:i:3:p:369-386
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    3. Werner Roeger & Paul J.J. Welfens, 2021. "Foreign Direct Investment and Innovations: Transmission Dynamics of Persistent Demand and Technology Shocks in a Macro Model," EIIW Discussion paper disbei300, Universitätsbibliothek Wuppertal, University Library.
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    7. Paul J. J. Welfens & Fabian J. Baier, 2018. "BREXIT and Foreign Direct Investment: Key Issues and New Empirical Findings," IJFS, MDPI, vol. 6(2), pages 1-21, April.
    8. Javier Revilla Diez & Martin Berger, 2005. "The Role of Multinational Corporations in Metropolitan Innovation Systems: Empirical Evidence from Europe and Southeast Asia," Environment and Planning A, , vol. 37(10), pages 1813-1835, October.
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