Inter-firm reverse technology transfer: the home country effect of R&D internationalization
Abstract
One consequence of the internationalization of R&D may be the transfer of foreign technology from the multinational to other firms in its home country. This phenomenon, which can be termed inter-firm reverse technology transfer and which has not been directly analyzed by either the international management or foreign direct investment literature, may have significant implications for policy--particularly in Europe. This article is a first attempt in this direction. Patent citation analysis on a database of EPO patents granted to 17 European chemical and pharmaceutical multinationals over the period 1985--2005 shows that they act as a channel for the transmission of knowledge developed in the United States, to other home country firms; these results are robust to the exclusion of examiner citations. We find that this technology transfer process is explained by the degree of home country embeddedness of the multinational firm, the US subsidiaries' engagement in asset-augmenting activities, and the presence of a technology gap between the United States and the home country. These results point to an alternative understanding of foreign direct R&D investment and its implications for the home country's technological activity and general competitive performance. Copyright 2009 The Author 2009. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.Download Info
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Bibliographic Info
Article provided by Oxford University Press in its journal Industrial and Corporate Change.
Volume (Year): 18 (2009)
Issue (Month): 5 (October)
Pages: 869-899
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Richard Fabling & Arthur Grimes & Lynda Sanderson, 2011.
"Whatever next? Export market choices of New Zealand firms,"
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ersa10p367, European Regional Science Association.
- Richard Fabling & Arthur Grimes & Lynda Sanderson, 2012. "Whatever next? Export market choices of New Zealand firms," Papers in Regional Science, Wiley Blackwell, vol. 91(1), pages 137-159, 03.
- Richard Fabling & Arthur Grimes & Lynda Sanderson, 2009. "Whatever next? Export market choices of New Zealand firms," Reserve Bank of New Zealand Discussion Paper Series DP2009/19, Reserve Bank of New Zealand.
- Davide Castellani & Fabio Pieri, 2012.
"R&D Offshoring and the Productivity Growth of European Regions,"
Development Working Papers
345, Centro Studi Luca d\'Agliano, University of Milano, revised 13 Nov 2012.
- Davide Castellani & Fabio Pieri, 2011. "R&D Offshoring and the Productivity Growth of European Regions," Working Papers 1120, Department of Applied Economics II, Universidad de Valencia.
- Suzuki, Shinya, 2012. "Internationalization of R&D activities by multinational firms.," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/340794, Katholieke Universiteit Leuven.
- Suma Athreye & Georgios Batsakis & Satwinder Singh, 2013. "Subsidiary Embeddedness is a Strategic Choice: Complementarity and the factors associated with different types of embeddedness," DRUID Working Papers 13-05, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Pietro Moncada-Paterno-Castello & Peter Voigt & Marco Vivarelli, 2011. "Evolution of Globalised business R&D: Features, drivers, impacts," JRC-IPTS Working Papers on Corporate R&D and Innovation 2011-02, Institute of Prospective Technological Studies.
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