Technology Transfer through Backward Linkages : The Case of the Spanish Manufacturing Industry
AbstractThe aim of this paper is to examine technology transfer through backward linkages between multinational enterprises and local suppliers. This issue is of great interest for several reasons. First of all, the new theory of economic growth suggests that technological innovations are becoming an increasingly important contributor to economic growth. Secondly, an obvious policy issue for governments is whether or not incentives should be offered to multinational firms in order to attract them. The econometric analysis presented here is based on a firm level database from Spain for the period 1990-2000. We use the Olley and Pakes method to estimate the total factor productivity of the firms and measure the effect of downstream FDI on local firm productivity and find positive evidence on the existence of technology transfer through backward linkages. Our results show strong evidence on technology spillovers through backward linkages, especially in the case of export-oriented affiliates and fully-owned affiliates.
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Bibliographic InfoPaper provided by Université Panthéon-Sorbonne (Paris 1) in its series Cahiers de la Maison des Sciences Economiques with number bla04073.
Length: 35 pages
Date of creation: Jul 2004
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Technology spillovers; Backward linkages; foreign direct investment;
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-03-13 (All new papers)
- NEP-COM-2005-03-13 (Industrial Competition)
- NEP-INO-2005-03-13 (Innovation)
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- Nuno Crespo & Isabel Proença & Maria Paula Fontoura, 2007.
"FDI Spillovers at Regional Level: Evidence from Portugal,"
Working Papers Department of Economics
2007/28, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- Nuno Crespo & Maria Paula Fontoura & Isabel Proença, 2009. "FDI spillovers at regional level: Evidence from Portugal," Papers in Regional Science, Wiley Blackwell, vol. 88(3), pages 591-607, 08.
- Nuno Crespo & Isabel Proença & Maria Paula Fontoura, 2008. "FDI Spillovers at Regional Level: Evidence from Portugal," Working Papers Series 1 ercwp0508, ISCTE-IUL, Business Research Unit (BRU-IUL).
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