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International Integration and Mandates of Innovative Subsidiaries in Spain

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  • Isabel Álvarez

    ()
    (Departamento de Economía Aplicada II Universidad Complutense de Madrid Madrid, Spain)

  • John Cantwell

    ()
    (Rutgers Business School Rutgers University Newark, USA)

Abstract

In this paper, we develop a general framework that integrates diverse driving mechanisms of subsidiaries evolving towards competence creating mandates. The relevant process is the mutual relationship between innovation scope and the internationalization of the market as the primary channel for learning in subsidiaries, and how the opportunity for units to gain competence creating mandates is notably influenced by their embeddedness in export networks. This has direct implications for increasing the international channels for learning and indirectly in terms of the effectiveness of host country development. The framework is applied to a sample of firms in the Spanish economy, a country that does not hold a leading position economically and technologically inside the EU bloc, which suggests that the evidence may be suitable for generalizing the organization and network embeddedness of other catching-up economies.

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Bibliographic Info

Article provided by Faculty of Economics and Administration, University of Malaya in its journal International Journal of Institutions and Economies.

Volume (Year): 3 (2011)
Issue (Month): 3 (October)
Pages: 415-444

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Handle: RePEc:umk:journl:v:3:y:2011:i:3:p:415-444

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Related research

Keywords: - innovation; mandates; MNC; networks; subsidiaries;

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References

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  1. John Cantwell & Lucia Piscitello, 2007. "Attraction and deterrence in the location of foreign-owned R&D activities: the role of positive and negative spillovers," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 1(1), pages 83-111.
  2. Sourafel Girma, 2003. "Absorptive capacity and productivity spillovers From FDI: a threshold regression analysis," European Economy Group Working Papers 25, European Economy Group.
  3. Cantwell, John, 1995. "The Globalisation of Technology: What Remains of the Product Cycle Model?," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 155-74, February.
  4. Sourafel Girma & Holger Görg & Mauro Pisu, 2008. "Exporting, linkages and productivity spillovers from foreign direct investment," Canadian Journal of Economics, Canadian Economics Association, vol. 41(1), pages 320-340, February.
  5. Philip McCann & Ram Mudambi, 2005. "Analytical differences in the economics of geography: the case of the multinational firm," Environment and Planning A, Pion Ltd, London, vol. 37(10), pages 1857-1876, October.
  6. Nigel Driffield & James H Love, 2007. "Linking FDI motivation and host economy productivity effects: conceptual and empirical analysis," Journal of International Business Studies, Palgrave Macmillan, vol. 38(3), pages 460-473, May.
  7. Francesca Sanna-Randaccio & Reinhilde Veugelers, 2007. "Multinational knowledge spillovers with decentralised R&D: a game-theoretic approach," Journal of International Business Studies, Palgrave Macmillan, vol. 38(1), pages 47-63, January.
  8. Marin, Anabel & Costa, Ionara, 2009. "Thinking locally: Exploring the importance of a subsidiary-centered model of FDI-related spillovers in Brazil," MERIT Working Papers 008, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  9. Damijan, Joze P. & Knell, Mark & Majcen, Boris & Rojec, Matija, 2003. "The role of FDI, R&D accumulation and trade in transferring technology to transition countries: evidence from firm panel data for eight transition countries," Economic Systems, Elsevier, vol. 27(2), pages 189-204, June.
  10. Cantwell, John & Piscitello, Lucia, 2002. "The location of technological activities of MNCs in European regions: The role of spillovers and local competencies," Journal of International Management, Elsevier, vol. 8(1), pages 69-96.
  11. Igor Filatotchev & Johannes Stephan & Bj�rn Jindra, 2008. "Ownership structure, strategic controls and export intensity of foreign-invested firms in transition economies," Journal of International Business Studies, Palgrave Macmillan, vol. 39(7), pages 1133-1148, October.
  12. Ram Mudambi, 2008. "Location, control and innovation in knowledge-intensive industries," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 699-725, September.
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Cited by:
  1. Morero, Hernan Alejandro, 2013. "Internacionalizacion y Sistema Nacional de Innovacion argentino: una perspectiva de tramas productivas. Los casos automotriz y siderurgico
    [Internationlization and argentinean National System of In
    ," MPRA Paper 44409, University Library of Munich, Germany.

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