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Importance of International Linkages for Local Know-How Flows: Some Econometric Evidence From Belgium

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  • Cassiman, Bruno
  • Veugelers, Reinhilde

Abstract

External knowledge is an important input for the innovation process of firms. Increasingly, this knowledge is likely to originate from outside of their national borders. This explains the preoccupation of policymakers with stimulating local technology transfers coming from international firms. We find that firms that have access to the international technology market are more likely to transfer technology to the local economy. In doing so, we qualify the traditional assertion that multinational firms are more likely to transfer technology to the local economy. Once controlled for the superior access to the international technology market that multinationals enjoy, we find that these firms are not more likely to transfer technology to the local economy compared to exporting or local firms that have access to the international technology market. In summary, the main result of this paper is that it is not so much the international character of the firms, but rather their access to the international technology market that is important for generating external knowledge transfers to the local economy.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2337.

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Date of creation: Dec 1999
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Handle: RePEc:cpr:ceprdp:2337

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Keywords: Access To International Know-How; Local Transfers Of Know-How; Multinationals; Technology Transfer Channels;

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References

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  1. Elhanan Helpman, 1997. "R&D and Productivity: The International Connection," Harvard Institute of Economic Research Working Papers 1798, Harvard - Institute of Economic Research.
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Citations

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Cited by:
  1. Valeria Gattai, 2010. "Firm's intangible assets and multinational activity: Full versus shared ownership," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 19(4), pages 553-589.
  2. Wolfgang Sofka, 2005. "Global Idea Sourcing - An empirical investigation into the mechanisms behind the usage of foreign business sources for innovation," Industrial Organization 0509004, EconWPA.
  3. Barrios, Salvador & Bertinelli, Luisito & Heinen, Andreas, 2007. "Exploring The Link Between Local And Global Knowledge Spillovers," MPRA Paper 6239, University Library of Munich, Germany.
  4. Lejour, Arjan & Rojas Romasgosa, Hugo & Rodriguez, Victor & Montalvo, Carvos & Van der Zee, Frans, 2009. "Trade costs, Openness and Productivity: Market Access at Home and Abroad," MPRA Paper 21214, University Library of Munich, Germany.
  5. Criscuolo,Paola, 2002. "Reverse Technology Transfer: A Patent Citation Analysis of the European Chemical and Pharmaceutical sectors," Research Memorandum 036, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
  6. Paola Criscuolo, 2003. "Reverse Technology Transfer: A Patent Citation Analysis of the European Chemical and Pharmaceutical Sectors," SPRU Working Paper Series 107, SPRU - Science and Technology Policy Research, University of Sussex.
  7. Cassiman, Bruno & Golovko, Elena, 2009. "Productivity of Catalan firms. International exposure and (product) innovation," IESE Research Papers D/808, IESE Business School.
  8. T.N. Srinivasan & Vani Archana, 2010. "India in the Global and Regional Trade: Determinants of Aggregate and Bilateral Trade Flows and Firms’ Decision to Export," Working Papers id:2881, eSocialSciences.
  9. T.N. Srinivasan & Vani Archana, 2009. "India in the Global and Regional Trade - Determinants of Aggregate and Bilateral Trade Flows and Firms’ Decision to Export," Trade Working Papers 22261, East Asian Bureau of Economic Research.

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