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Knowledge Transfers from Multi-National Plants in Ireland - A Cross-Border comparison of Supply Chain Linkages

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Author Info
Hewitt-Dundas, Nola
Andreosso-O'Callaghan, Bernadette
Crone, Mike
Murray, J
Roper, Stephen

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Abstract

For regions or nations which historically have had low levels of domestic R&D investment, such as Ireland, North and South, inward investment represents a potentially important source of inward knowledge transfer. Using data from large multi-national plants throughout Ireland this paper examines the geography of knowledge within Irish manufacturing, focussing particularly on knowledge gaps and knowledge transfer activity. The analysis suggests four main empirical results. First, no significant knowledge gaps exist between the Irish plants of multinational (MNE) companies and international best practice. Second, larger knowledge gaps exist between MNE plants and their best local suppliers suggesting the potential for local learning in the supply chain. Average knowledge gaps to suppliers also tend to be larger in the North. Third, there is no clear evidence that knowledge transfer activity is more intensive where knowledge gaps are widest. In particular, developmental interaction between MNE plants and suppliers tends to be more common in the South. Fourth, MNE plants indicated they had a larger impact on their suppliers in the South. These results suggest the potential benefit of policy measures both to increase knowledge transfer activity along the supply chain but also between companies which are not trading partners.

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Paper provided by Economic Research Institute of Northern Ireland in its series Working Papers NIERC. with number 72.

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Length: 42 pages
Date of creation: May 2002
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Handle: RePEc:eri:niercp:72

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Related research
Keywords: MULTINATIONAL FIRMS ; REGIONAL ECONOMY ; LEARNING;

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Find related papers by JEL classification:
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
R58 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Regional Development Policy

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  15. NOLA HEWITT-DUNDAS & BERNADETTE ANDRÉOSSO-O'CALLAGHAN & MIKE CRONE & JOHN MURRAY & STEPHEN ROPER, 2005. "Selling global, buying local? What determines the sourcing patterns of multinational plants in Ireland?," Regional Studies, Taylor and Francis Journals, vol. 39(2), pages 225-239, April. [Downloadable!] (restricted)
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