SMEs´ absorptive capacities and large firms´ knowledge spillovers: Micro evidence from Mexico
AbstractThe aim of this paper is to analyze the relationship between large firms´ knowledge spillovers and small and medium enterprises absorptive capacities. We build ad-hoc indicators for these two concepts following a factor analysis methodology, and we carry out a structural equations analysis to determine the relationship between them. Based on firm level original data from a survey that focuses on SMEs in a Mexican locality, this paper argues that in a low-tech and mature sector, such as the machine shop sector, that operates in a loosely articulated local system, two knowledge spillover mechanisms are relevant: the backward linkages and the employees´ mobility. Regarding SMEs’ absorptive capacities they are strongly influenced by organizational capabilities and innovation and learning activities. We also argue that large firms’ knowledge spillovers are strongly correlated to SMEs absorptive capacities within the sector and locality analyzed.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy in its series CIRCLE Electronic Working Papers with number 2011/1.
Length: 28 pages
Date of creation: 20 Jan 2011
Date of revision:
Absorptive capacities; Knowledge spillovers; SME-large firms interaction; Mexico;
Find related papers by JEL classification:
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-12-19 (All new papers)
- NEP-CSE-2011-12-19 (Economics of Strategic Management)
- NEP-ENT-2011-12-19 (Entrepreneurship)
- NEP-INO-2011-12-19 (Innovation)
- NEP-KNM-2011-12-19 (Knowledge Management & Knowledge Economy)
- NEP-SBM-2011-12-19 (Small Business Management)
- NEP-URE-2011-12-19 (Urban & Real Estate Economics)
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.:
- Liu, Xiaohui & Buck, Trevor, 2007. "Innovation performance and channels for international technology spillovers: Evidence from Chinese high-tech industries," Research Policy, Elsevier, vol. 36(3), pages 355-366, April.
- Sourafel Girma, 2005.
"Absorptive Capacity and Productivity Spillovers from FDI: A Threshold Regression Analysis,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 67(3), pages 281-306, 06.
- Sourafel Girma, 2003. "Absorptive capacity and productivity spillovers From FDI: a threshold regression analysis," European Economy Group Working Papers 25, European Economy Group.
- Durham, J.B.J. Benson, 2004. "Absorptive capacity and the effects of foreign direct investment and equity foreign portfolio investment on economic growth," European Economic Review, Elsevier, vol. 48(2), pages 285-306, April.
- Magnus Blomstrom & Ari Kokko, 2003.
"The Economics of Foreign Direct Investment Incentives,"
NBER Working Papers
9489, National Bureau of Economic Research, Inc.
- Blomström, Magnus & Kokko, Ari, 2003. "The Economics of Foreign Direct Investment Incentives," CEPR Discussion Papers 3775, C.E.P.R. Discussion Papers.
- Blomström, Magnus & Kokko, Ari, 2003. "The Economics of Foreign Direct Investment Incentives," EIJS Working Paper Series 168, The European Institute of Japanese Studies.
- Escribano, Alvaro & Fosfuri, Andrea & Tribó, Josep A., 2009.
"Managing external knowledge flows: The moderating role of absorptive capacity,"
Elsevier, vol. 38(1), pages 96-105, February.
- Escribano, Álvaro & Fosfuri, Andrea & Tribó, Josep A., 2009. "Managing external knowledge flows: The moderating role of absorptive capacity," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/6666, Universidad Carlos III de Madrid.
- Manuel Albaladejo, . "Determinants and Policies to Foster the Competitiveness of SME Clusters: Evidence from Latin America," QEH Working Papers qehwps71, Queen Elizabeth House, University of Oxford.
- Blalock, Garrick & Gertler, Paul J., 2004. "Learning from exporting revisited in a less developed setting," Journal of Development Economics, Elsevier, vol. 75(2), pages 397-416, December.
- Fredrik Sjoholm, 1999.
"Technology gap, competition and spillovers from direct foreign investment: Evidence from establishment data,"
The Journal of Development Studies,
Taylor and Francis Journals, vol. 36(1), pages 53-73.
- Sjöholm, Fredrik, 1997. "Technology Gap, Competition and Spillovers from Direct Foreign Investment: Evidence from Establishment Data," Working Paper Series in Economics and Finance 212, Stockholm School of Economics.
- Fosfuri, Andrea & Motta, Massimo & Rønde, Thomas, 2001.
"Foreign direct investment and spillovers through workers' mobility,"
Open Access publications from Universidad Carlos III de Madrid
info:hdl:10016/13207, Universidad Carlos III de Madrid.
- Fosfuri, Andrea & Motta, Massimo & Ronde, Thomas, 2001. "Foreign direct investment and spillovers through workers' mobility," Journal of International Economics, Elsevier, vol. 53(1), pages 205-222, February.
- Andrea Fosfuri & Massimo Motta & Thomas Ronde, 1998. "Foreign direct investments and spillovers through workers' mobility," Economics Working Papers 258, Department of Economics and Business, Universitat Pompeu Fabra.
- Fosfuri, Andrea & Motta, Massimo & Rønde, Thomas, 1999. "Foreign Direct Investment and Spillovers through Workers' Mobility," CEPR Discussion Papers 2194, C.E.P.R. Discussion Papers.
- Kafouros, Mario I. & Buckley, Peter J., 2008. "Under what conditions do firms benefit from the research efforts of other organizations?," Research Policy, Elsevier, vol. 37(2), pages 225-239, March.
- Beata Smarzynska Javorcik, 2004.
"Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages,"
American Economic Review,
American Economic Association, vol. 94(3), pages 605-627, June.
- Beata K. Smarzynska, 2003. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers through Backward Linkages," William Davidson Institute Working Papers Series 548, William Davidson Institute at the University of Michigan.
- Smarzynska, Beata K., 2002. "Does foreign direct investment increase the productivity of domestic firms : in search of spillovers through backward linkages," Policy Research Working Paper Series 2923, The World Bank.
- Maurice Kugler, .
"Spillovers from Foreign Direct Investment: Within or between Industries?,"
Borradores de Economia
369, Banco de la Republica de Colombia.
- Kugler, Maurice, 2006. "Spillovers from foreign direct investment: Within or between industries?," Journal of Development Economics, Elsevier, vol. 80(2), pages 444-477, August.
- Maurice Kugler, 2006. "Spillovers From Foreign Direct Investment:Within Or Between Industries?," BORRADORES DE ECONOMIA 003523, BANCO DE LA REPÚBLICA.
- Ivarsson, Inge & Alvstam, Claes Goran, 2005. "Technology transfer from TNCs to local suppliers in developing countries: A study of AB Volvo's truck and bus plants in Brazil, China, India, and Mexico," World Development, Elsevier, vol. 33(8), pages 1325-1344, August.
- Driffield, Nigel, 2001. "The Impact of Domestic Productivity of Inward Investment in the UK," Manchester School, University of Manchester, vol. 69(1), pages 103-19, January.
- Motohashi, Kazuyuki & Yuan, Yuan, 2010. "Productivity impact of technology spillover from multinationals to local firms: Comparing China's automobile and electronics industries," Research Policy, Elsevier, vol. 39(6), pages 790-798, July.
- Girma, Sourafel & Greenaway, David & Wakelin, Katharine, 2001. "Who Benefits from Foreign Direct Investment in the UK?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(2), pages 119-33, May.
- Jordaan, Jacob A., 2005. "Determinants of FDI-induced externalities: New empirical evidence for Mexican manufacturing industries," World Development, Elsevier, vol. 33(12), pages 2103-2118, December.
- Nelson, Andrew J., 2009. "Measuring knowledge spillovers: What patents, licenses and publications reveal about innovation diffusion," Research Policy, Elsevier, vol. 38(6), pages 994-1005, July.
- Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998.
"How does foreign direct investment affect economic growth?1,"
Journal of International Economics,
Elsevier, vol. 45(1), pages 115-135, June.
- Eduardo Borensztein & Jose De Gregorio & Jong-Wha Lee, 1995. "How Does Foreign Direct Investment Affect Economic Growth?," NBER Working Papers 5057, National Bureau of Economic Research, Inc.
- Jong-Wha Lee & Jose De Gregorio & Eduardo Borensztein, 1994. "How Does Foreign Direct Investment Affect Economic Growth," IMF Working Papers 94/110, International Monetary Fund.
- O'Mahony, Mary & Vecchi, Michela, 2009. "R&D, knowledge spillovers and company productivity performance," Research Policy, Elsevier, vol. 38(1), pages 35-44, February.
- Davide Castellani & Antonello Zanfei, 2003. "Technology gaps, absorptive capacity and the impact of inward investments on productivity of European firms ," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 12(6), pages 555-576.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Cristina Chaminade).
If references are entirely missing, you can add them using this form.