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Does Internationalisation of Technology Determine Technological Diversification in Large Firms ? An Empirical Study

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  • Christian Le Bas
  • Pari Patel

Abstract

[eng] The purpose of the paper is to examine the relationship between technological diversification and internationalisation of technology for large multinational firms, operating at the world technological frontier. More precisely we address the question as to whether internationalisation determines diversification. The analysis is based on a rich database of the European patenting activity of 345 large multinational firms with the highest levels of patenting over two periods of time (1988-1990 and 1994-1996). The relationship is tested using a variety of different regression models. The results show that for the sample as a whole there is no statistically significant relationship between technological diversification and internationalisation of technology. However when the sample is disaggregated according to the predominant internationalisation strategy adopted by a firm, we find a statistically significant relationship. Our results show that in a cross-section of firms adopting a home-base-augmenting strategy, internationalisation determines the level of diversification. Thus amongst such large firms a higher level of internationalisation of technology is associated with a greater level of diversification. [fre] Le but de ce papier est d'examiner les relations entre la diversification technologique et l'internationalisation technologique des firmes multinationales. Plus précisément nous posons la question de savoir si c'est l'internationalisation qui détermine la diversification. L'analyse est fondée sur une base de données de brevets européens possédés par 345 firmes multinationales sur deux périodes de temps (1988-1990, 1994-1996). Nous testons plusieurs modèles. Les résultats montrent que sur l'ensemble de l'échantillon, il n'y a pas de relation significative entre diversification et internationalisation technologiques. Une fois l'échantillon divisé en deux parties, dont une concernant les firmes multinationales ayant une stratégie de type " home-base-augmenting ", nous montrons que pour ces firmes, un niveau plus élevé d'internationalisation de la technologie est associé à un niveau plus grand de diversification.

Suggested Citation

  • Christian Le Bas & Pari Patel, 2005. "Does Internationalisation of Technology Determine Technological Diversification in Large Firms ? An Empirical Study," Revue d'Économie Industrielle, Programme National Persée, vol. 110(1), pages 157-174.
  • Handle: RePEc:prs:recind:rei_0154-3229_2005_num_110_1_3077
    DOI: 10.3406/rei.2005.3077
    Note: DOI:10.3406/rei.2005.3077
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    Cited by:

    1. Quintás, Mari­a A. & Vázquez, Xosé H. & Garci­a, José M. & Caballero, Gloria, 2008. "Geographical amplitude in the international generation of technology: Present situation and business determinants," Research Policy, Elsevier, vol. 37(8), pages 1371-1381, September.
    2. Cozza, Claudio & Franco, Chiara & Perani, Giulio, 2018. "R&D endowments at home driving R&D internationalisation: Evidence from the Italian business R&D survey," Technological Forecasting and Social Change, Elsevier, vol. 134(C), pages 277-289.
    3. Virginie JACQUIER-ROUX & Christian LE BAS, 2008. "LOCALISATION DES ACTIVITeS DE R D DES FIRMES MULTINATIONALES, MODES D’ORGANISATION EN ReSEAUX ET TRANSFERT TRANSNATIONAL DES CONNAISSANCES : UN CADRE D’ANALYSE," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 28, pages 11-38.
    4. Hella Bani Baghdadi & Sami Aouadi, 2018. "Does Patent Performance Promote Relative Technological Performance in Countries Bordering the Mediterranean?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(4), pages 1246-1269, December.

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