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Multinational Corporations, Value Chains and Knowledge Spillovers in the Global Aircraft Industry

Author

Listed:
  • Jorge Niosi

    (Department of Management and Technology, Université du Québec à Montréal)

  • Majlinda Zhegu

    (Department of Management and Technology, Université du Québec à Montréal)

Abstract

The commercial aircraft manufacturing industry is starting a process of delocalization from developed to developing countries. From its original strongholds in the United States, Western Europe and Canada, it is now moving towards the largest new industrial countries of Brazil, Russia, India and China. The technology transfer channels include investment by multinational corporations, participation in global value chains, and outsourcing by large prime contractors based in North America and Western Europe. The process through which technological learning occurs has been studied in economics as international knowledge spillovers. In management, similar processes have been studied under outsourcing and global value chains. Drawing hypotheses from theory, the paper analyzes the patterns of trade, foreign direct investment and outsourcing in the global aircraft manufacturing industry. The evidence amassed shows that through these mechanisms, North American and Western European aircraft industries risk now losing their dominance to the developing countries.

Suggested Citation

  • Jorge Niosi & Majlinda Zhegu, 2010. "Multinational Corporations, Value Chains and Knowledge Spillovers in the Global Aircraft Industry," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 2(2), pages 109-141, October.
    • Handle: RePEc:umk:journl:v:2:y:2010:i:2:p:109-141
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    References listed on IDEAS

    as
    1. Magnus Blomström & Ari Kokko & Mario Zejan, 2000. "Multinational Corporations and Spillovers," Palgrave Macmillan Books, in: Foreign Direct Investment, chapter 8, pages 101-133, Palgrave Macmillan.
    2. Chong Ju Choi & Carla C. J. M. Millar & Caroline Y. L. Wong, 2005. "Knowledge and Competition," Palgrave Macmillan Books, in: Knowledge Entanglements, chapter 0, pages 97-117, Palgrave Macmillan.
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    Cited by:

    1. Cafaggi, Fabrizio & Joppert Swensson, Luana F. & Macedo Junior, Ronaldo Porto & Silva, Tiago Andreotti e & Gross, Clarissa Piterman & Almeida, Lucila Gabriel de & Ribeiro, Thiago Alves, 2012. "Accessing the Global Value Chain in a Changing Institutional Environment: Comparing Aeronautics and Coffee," IDB Publications (Working Papers) 4250, Inter-American Development Bank.
    2. Zhao, Wei, 2013. "Estimating Dynamic Merger Effciencies with an Application to the 1997 Boeing-McDonnell Douglas Merger," MPRA Paper 63184, University Library of Munich, Germany, revised 11 Sep 2014.
    3. Monge-González, Ricardo & Zolezzi, Sandro, 2012. "Insertion of Costa Rica in Global Value Chains: A Case Study," IDB Publications (Working Papers) 4256, Inter-American Development Bank.
    4. Caliari, Thiago & Ribeiro, Leonardo Costa & Pietrobelli, Carlo & Vezzani, Antonio, 2023. "Global value chains and sectoral innovation systems: An analysis of the aerospace industry," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 36-48.
    5. Christophe Benaroya & Christine Fèvre-Pernet, 2014. "Le naming : facilitateur de management de grands projets industriels ?," Post-Print halshs-00972031, HAL.

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    More about this item

    Keywords

    - multinational corporations; aircraft industry; modularity; value chain; spillovers;
    All these keywords.

    JEL classification:

    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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