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Foreign subsidiaries as channel of international technology diffusion. Some direct firm level evidence from Belgium

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Author Info
Cassiman, Bruno () (IESE Business School)
Veugelers, Reinhilde (IESE Business School)

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Abstract

The use of FDI as a channel of international spillovers is by now fairly established in the empirical literature on innovation and growth. It is often argued that subsidiaries of foreign MNEs are a mechanism through which technological know-how flows across borders. For foreign subsidiaries to be channels of international spillovers, these subsidiaries need to source know-how internationally and at the same time transfer their know-how to the local economy. Using direct firm level evidence from Belgian CIS-survey data on the occurrence of technology transfers, we find that foreign subsidiaries are indeed more likely to acquire technology internationally. But once controlled for the superior access to the international technology market that foreign subsidiaries enjoy, we find that these firms are not more likely to transfer technology to the local economy. This suggests that foreign subsidiaries are not necessarily interesting sources for local transfers. What seems to be important for local technology transfers is having an international network that provides access to international technology

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Paper provided by IESE Business School in its series IESE Research Papers with number D/441.

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Length: 26 pages
Date of creation: 01 Sep 2001
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Handle: RePEc:ebg:iesewp:d-0441

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Keywords: Management; Technology transfer;

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M10 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - General

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    Other versions:
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    Other versions:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Filip De Beule & Ilke Van Beveren, 2009. "Multinational ownership and R&D intensity: The role of external knowledge sources and spillovers," LICOS Discussion Papers 24209, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
  2. Marco Da Rin & María Fabiana Penas, 2007. "The Effect of Venture Capital on Innovation Strategies," NBER Working Papers 13636, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Simona Iammarino & Francesca Sanna-Randaccio & Maria Savona, 2007. "The perception of obstacles to innovation. Multinational and domestic firms in Italy," Working Papers of BETA 2007-12, Bureau d'Economie Théorique et Appliquée, ULP, Strasbourg. [Downloadable!]
  4. Manuela Gussoni, . "The determinants of inter-¯rms R&D cooperation and partner selection. A literature overview," Discussion Papers 2009/86, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
  5. Lööf, Hans, 2007. "Technology Spillovers and Innovation - the importance of domestic and foreign sources," Working Paper Series in Economics and Institutions of Innovation 83, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies, revised 29 Jun 2007. [Downloadable!]
  6. Narula, Rajneesh & Michel, Julie, 2009. "Reverse knowledge transfer and its implications for European policy," UNU-MERIT Working Paper Series 035, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
  7. Ruth Rama, 2008. "Foreign investment innovation: a review of selected policies," The Journal of Technology Transfer, Springer, vol. 33(4), pages 353-363, August. [Downloadable!] (restricted)
  8. Rammer, Christian & Schmiele, Anja, 2008. "Drivers and Effects of Internationalising Innovation by SMEs," ZEW Discussion Papers 08-035 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  9. Peri, Giovanni & Urban, Dieter, 2002. "The Veblen-Gerschenkron Effect of FDI in Mezzogiorno and East Germany," Working Papers 03-1, University of California at Davis, Department of Economics. [Downloadable!]
    Other versions:
  10. Rene Belderbos & Bart Leten & Shinya Suzuki, 2009. "Does Excellence in Academic Research Attract Foreign R&D?," Global COE Hi-Stat Discussion Paper Series gd09-079, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
  11. Barrios, Salvador & Bertinelli, Luisito & Heinen, Andreas & Strobl, Eric, 2007. "Exploring The Link Between Local And Global Knowledge Spillovers," MPRA Paper 6239, University Library of Munich, Germany. [Downloadable!]
  12. Joel Stiebale & Frank Reize, 2008. "The Impact of FDI on Innovation in Target Firms," Ruhr Economic Papers 0050, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen. [Downloadable!]
  13. Schmiele, Anja & Rammer, Christian, 2008. "Drivers and Effects of Internationalising Innovation by SMEs," ZEW Discussion Papers 08-035, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  14. Hans Lööf, 2009. "Multinational enterprises and innovation: firm level evidence on spillover via R&D collaboration," Journal of Evolutionary Economics, Springer, vol. 19(1), pages 41-71, February. [Downloadable!] (restricted)
  15. Coucke, K. & Sleuwaegen, L., 2007. "Offshoring as a Survival Strategy in Globalizing Industries: New Evidence from Belgian Manufacturing," Vlerick Leuven Gent Management School Working Paper Series 2007-13, Vlerick Leuven Gent Management School. [Downloadable!]
  16. Barrios Salvador & Bertinelli Luisito & Heinen Andreas & Strobl Eric, 2008. "EXPLORING THE LINK BETWEEN LOCAL AND GLOBAL KNOWLEDGE SPILLOVERS: Evidence from Plant-Level Data," CREA Discussion Paper Series 08-01, Center for Research in Economic Analysis, University of Luxembourg. [Downloadable!]
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