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The Production, Transfer and Spillover of Technology: Comparing Large and Small Multinationals as Technology Producers

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  • Eden, Lorraine
  • Levitas, Edward
  • Martinez, Richard J

Abstract

Multinational enterprises are, sina qua non, the world's technology producers. In this paper, we explore the concept of technology production by multinationals, focusing on three aspects: (i) technology as a firm-specific advantage, (ii) the costs of technology transfer, and (iii) technology spillovers. In each case, we outline current views and debates in the field about the role played by large multinationals in technology production. Finally, we compare MNEs with small and medium sized enterprises (SMEs) as technology producers. We conclude that SMEs face certain constraints, due to small size and inadequate financing, that raise their costs of technology production and transfer, relative to the costs for MNEs. On the other hand, their flexibility and use of unconventional methods can create successful mini-nationals in niche markets. Copyright 1997 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Small Business Economics.

Volume (Year): 9 (1997)
Issue (Month): 1 (February)
Pages: 53-66

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Handle: RePEc:kap:sbusec:v:9:y:1997:i:1:p:53-66

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Web page: http://www.springerlink.com/link.asp?id=100338

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Cited by:
  1. Chiara Guardo & Giovanni Valentini, 2007. "Taking Actively Advantage of MNCs’ Presence," Small Business Economics, Springer, vol. 28(1), pages 55-68, January.
  2. repec:idb:brikps:12078 is not listed on IDEAS
  3. Wang, Chengqi & Deng, Ziliang & Kafouros, Mario I. & Chen, Yan, 2012. "Reconceptualizing the spillover effects of foreign direct investment: A process-dependent approach," International Business Review, Elsevier, vol. 21(3), pages 452-464.
  4. Pawlik, Konrad, 2005. "Effects of foreign presence and affiliate control on the productivity of domestic companies in a transition economy: the case of Polish manufacturing 1993-2002," Working Papers 2005-11, University of Aarhus, Aarhus School of Business, Department of Management.
  5. Crone, Mike & Roper, Stephen, 1999. "Knowledge Transfers from Multi-national Plants in Northern Ireland," ERSA conference papers ersa99pa053, European Regional Science Association.
  6. B. Michael Gilroy & Elmar Lukas & Christian Heimann, 2013. "Technologiestandort Deutschland und internationale Wissensspillover, Welchen Einfluss nehmen auslaendische MNU auf deutsche Exporte?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 233(5-6), pages 575-599, October.
  7. Sönmez, Alper & Pamukçu, Mehmet Teoman, 2011. "Türkiye Otomotiv Sektöründe Çokuluslu Şirketler Aracılığıyla Ana Sanayiden Yan Sanayiye Yapılan Bilgi ve Teknoloji Transferinin Analizi
    [Analysis of Knowledge and Technology Transfer by M
    ," MPRA Paper 39506, University Library of Munich, Germany.
  8. Hua Liang & Zongyi Zhang, 2012. "The effects of industry characteristics on the sources of technological product and process innovation," The Journal of Technology Transfer, Springer, vol. 37(6), pages 867-884, December.
  9. Heather Dixon-Fowler & Daniel Slater & Jonathan Johnson & Alan Ellstrand & Andrea Romi, 2013. "Beyond “Does it Pay to be Green?” A Meta-Analysis of Moderators of the CEP–CFP Relationship," Journal of Business Ethics, Springer, vol. 112(2), pages 353-366, January.
  10. Xiaowen Tian & Shuanglin Lin & Vai Io Lo, 2004. "Foreign direct investment and economic performance in transition economies: evidence from China," Post-Communist Economies, Taylor & Francis Journals, vol. 16(4), pages 497-510.
  11. Li, Jing & Zhou, Changhui, 2008. "Dual-edged tools of trade: How international joint ventures help and hinder capability building of Chinese firms," Journal of World Business, Elsevier, vol. 43(4), pages 463-474, October.
  12. Fu, Miao & Fu, Xiaolan & Li, Tieli, 2008. "International and Intra-national Technology Spillovers and Technology Development Paths in Developing Countries: The Case of China," Working Paper Series RP2008/96, World Institute for Development Economic Research (UNU-WIDER).
  13. Ghafele, Roya & Gibert, Benjamin, 2011. "A Changing Climate: Statistical Evidence of the Intellectual Property Landscape of Clean Energy Technologies," MPRA Paper 36217, University Library of Munich, Germany.
  14. M. Teoman Pamukçu & Alper Sönmez, 2011. "Technology Transfer in the Global Automotive Value Chain. Lessons from the Turkish Automotive Industry," STPS Working Papers 1109, STPS - Science and Technology Policy Studies Center, Middle East Technical University, revised Dec 2011.
  15. Oladottir, Asta Dis & Hobdari, Bersant & Papanastassiou, Marina & Pearce, Robert & Sinani, Evis, 2012. "Strategic complexity and global expansion: An empirical study of newcomer Multinational Corporations from small economies," Journal of World Business, Elsevier, vol. 47(4), pages 686-695.
  16. Fu, Xiaolan & Pietrobelli, Carlo & Soete, Luc, 2011. "The Role of Foreign Technology and Indigenous Innovation in the Emerging Economies: Technological Change and Catching-up," World Development, Elsevier, vol. 39(7), pages 1204-1212, July.
  17. Pawlik, Konrad, 2005. "How knowledge transfer and absorption impact on the profitability of foreign affiliates in Transition Economy? The case of Poland: 1993-2002," Working Papers 2005-5, University of Aarhus, Aarhus School of Business, Department of Management.

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