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Are ‘the best’ foreign subsidiaries cooperating for innovation with local partners? The case of an intermediate country

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  • Antonio García Sánchez
  • José Molero
  • Ruth Rama

Abstract

We analyse a sample of firms that are representative of Spanish manufacturing industry, in order to understand the relationship between foreign status and local cooperation for innovation. We focus on foreign subsidiaries (FS) displaying innovation intensity, newness of technology or the ability to build complex networks with local innovators. Foreign status increases the probability of local cooperation for innovation. However, FS displaying these characteristics are not necessarily more prone to cooperate locally for innovation than similar affiliated domestic firms. The distribution of cooperative FS tends to be even across sectors and this is confirmed for advanced FS. This suggests that FS look for general capabilities in local partnerships, rather than for specific expertise. The strategies of domestic affiliated firms seem to influence the relationship between foreign status and local cooperation for innovation.

Suggested Citation

  • Antonio García Sánchez & José Molero & Ruth Rama, 2016. "Are ‘the best’ foreign subsidiaries cooperating for innovation with local partners? The case of an intermediate country," Science and Public Policy, Oxford University Press, vol. 43(4), pages 532-545.
    • Handle: RePEc:oup:scippl:v:43:y:2016:i:4:p:532-545.
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    References listed on IDEAS

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    1. Alkemade, Floortje & Heimeriks, Gaston & Schoen, Antoine & Villard, Lionel & Laurens, Patricia, 2015. "Tracking the internationalization of multinational corporate inventive activity: national and sectoral characteristics," Research Policy, Elsevier, vol. 44(9), pages 1763-1772.
    2. Schmidt, Tobias & Sofka, Wolfgang, 2009. "Liability of foreignness as a barrier to knowledge spillovers: Lost in translation?," Journal of International Management, Elsevier, vol. 15(4), pages 460-474, December.
    3. John Cantwell, 1995. "Innovation in a global world Globalisation does not kill the need for national policies," New Economy, Institute for Public Policy Research, vol. 2(2), pages 66-70, June.
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    Cited by:

    1. Alberto Melane-Lavado & Agustín Álvarez-Herranz, 2018. "Different Ways to Access Knowledge for Sustainability-Oriented Innovation. The Effect of Foreign Direct Investment," Sustainability, MDPI, vol. 10(11), pages 1-30, November.
    2. Claudio Cozza & Giulio Perani & Antonello Zanfei, 2018. "Multinationals and R&D cooperation: empirical evidence from the Italian R&D survey," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 601-621, August.
    3. JinHyo Joseph Yun & EuiSeob Jeong & JinSeu Park, 2016. "Network Analysis of Open Innovation," Sustainability, MDPI, vol. 8(8), pages 1-21, July.

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