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Technology Transfer Within Multinational Firms and Its Impact on the Productivity of Scottish Subsidiaries

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  • Pamela Siler
  • Chengqi Wang
  • Xiaming Liu

Abstract

SILER P., WANG C. and LIU X. (2003) Technology transfer within multinational firms and its impact on the productivity of Scottish subsidiaries, Reg. Studies 37 , 15-25. This paper aims to examine the extent to which the technology generated in US parent firms is transferred to their Scottish affiliates in the form of productivity gains. Using a firm-level panel data set, the empirical results show that the labour productivity growth of Scottish subsidiaries is positively linked to the R&D activity of their US parents. The R&D variable, however, is not as significant as the subsidiary's own human capital in explaining productivity growth. The impact of human capital is particularly important in smaller firms competing in the process industries. In contrast, technical knowledge appears to be transferred more readily to larger subsidiaries; those that already have achieved a relatively high level of productivity; and those that compete in industries based on product technology. The results have implications for policy makers looking to reap the greatest benefits for their local and regional economies from FDI. SILER P., WANG C. et LIU X. (2003) Le transfert de la technologie au sein des entreprises multinationales et son impact sur la productivite des filiales ecossaises, Reg. Studies 37 , 15-25. Cet article cherche a examiner jusqu'a quel point la technologie developpee dans la maison mere des entreprises americaines se voit transferer aux filiales ecossaises sous forme de gains de productivite. A partir d'un ensemble de donnees provenant d'une enquete aupres des entreprises, les resultats empiriques laissent voir que la croissance de la productivite du travail dans les filiales ecossaises est en correlation etroite avec les activites de recherche-de veloppement de la maison mere americaine. Toujours est-il que la variable recherche-developpement ne s'avere pas aussi significative que ne l'est le capital humain afin d'expliquer la croissance de la productivite. En particulier, l'impact du capital humain est important pour les entreprises plus petites dans l'industrie de la transformation. Par contraste, il semble que la connaissance technique soit transferee plus facilement aux filiales de taille plus importante; a celles qui ont de ja atteint un niveau de productivite relativement eleve; et a celles qui se font la concurrence dans les industries fondees sur la technologie de produit. Il en resulte des implications pour les de cideurs qui cherchent a recueillir les meilleurs fruits de l'IDE en faveur de leur economie ou locale ou regionale. SILER P., WANG C. und LIU X. (2003) Technologietransfer in multinationalen Firmen und ihre Auswirkung auf die Produktionsleistung schottischer Tochtergesellschaften, Reg. Studies 37 , 15-25. Dieser Aufsatz versucht das Ausmass zu untersuchen, in dem von Muttergesellschaften in den USA geschaffene Technologie schottischen Zweigbetrieben, in Form von Leistungszulagen uberwiesen wird. Mit Hilfe von auf Firmenebene gewonnenen Ausschussdaten werden empirische Ergebnisse erreicht, die zeigen, dass die Zunahme der Arbeitsleistung der schottischen Tochtergesellschaften eindeutig in Verbindung mit der Forschungs-und Enwicklungstatigkeit ihrer Eltern in den USA auftritt. Bei Erklarung der Leistungszunahme erweist sich die Forschungs-und Entwicklungsvariable jedoch als weniger signifikant als die des Menschenkapitals in der Tochtergesellschaft. Die Auswirkung des Menschenkapitals ist besonders wichtig in kleineren Firmen, die mit Verfahrenstechnikindustrien konkurrieren. Technisches Wissen dagegen, scheint sich leichter an grossere Tochtergesellschaften weiterleiten zu lassen; solche, die bereits einen verhaltnismassig hohen Leistungsstand erreicht haben, und jene, die mit Industrien konkurrieren, die auf Produktionstechnologie beruhen. Die Ergebnisse haben Implikationen fur diejenigen, deren Firmenpolitik darauf ausgeht, den hochsten Profit fur die Wirtschaften ihrer Region und am Orte durch auslandische Direktinvestierung zu sichern.

Suggested Citation

  • Pamela Siler & Chengqi Wang & Xiaming Liu, 2003. "Technology Transfer Within Multinational Firms and Its Impact on the Productivity of Scottish Subsidiaries," Regional Studies, Taylor & Francis Journals, vol. 37(1), pages 15-25.
  • Handle: RePEc:taf:regstd:v:37:y:2003:i:1:p:15-25
    DOI: 10.1080/0034340022000033376
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    Citations

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    Cited by:

    1. Wen-Bin Chuang & Hui-lin Lin & Chien-Wei Wu, 2015. "Does Institutional Quality Strengthen The Positive Influence of Offshore R&D Strategy on the Firm Productivity?," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(2), pages 279-294, February.
    2. Dimitratos, Pavlos & Liouka, Ioanna & Young, Stephen, 2009. "Regional location of multinational corporation subsidiaries and economic development contribution: Evidence from the UK," Journal of World Business, Elsevier, vol. 44(2), pages 180-191, April.
    3. Aurora Teixeira & Li Shu, 2012. "The level of human capital in innovative firms located in China. Is foreign capital relevant?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 17(2), pages 343-360.
    4. Ho, Mia Hsiao-Wen & Wang, Fatima, 2015. "Unpacking knowledge transfer and learning paradoxes in international strategic alliances: Contextual differences matter," International Business Review, Elsevier, vol. 24(2), pages 287-297.
    5. Felix Haifeng Liao & Yehua H Dennis Wei, 2013. "Tncs' Technology Linkages with Domestic Firms: An Investigation of the Ict Industry in Suzhou, China," Environment and Planning C, , vol. 31(3), pages 460-474, June.
    6. Yingying Zhang Zhang & Sitaula Deepika & Henry (Hemin) Song, 2023. "International Technology Transfer in Emerging Markets: A Case of Nepal," Working Papers EMS_2023_06, Research Institute, International University of Japan.
    7. Jens Gammelgaard & Frank McDonald & Heinz Tüselmann & Christoph Dörrenbächer & Andreas Stephan, 2009. "Subsidiary Role and Skilled Labour Effects in Small Developed Countries," Management International Review, Springer, vol. 49(1), pages 27-42, February.

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