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Knowledge Diffusion From Multinational Enterprises: The Role of Domestic and Foreign Knowledge-Enhancing Activities


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  • Yasuyuki Todo
  • Koji Miyamoto


Many existing works using firm-level data sets have examined whether or not knowledge spills over from MNEs to domestically owned firms in a less developed country, but the literature has not come to a general consensus on the presence of spillovers. A possible reason for the mixed results is that they do not adequately address domestic and foreign efforts for active diffusion. The present paper thus incorporates R&D activities and human resource development conducted by MNEs and domestic firms to investigate whether these activities enhance knowledge diffusion from MNEs, using establishment-level panel data for the Indonesian manufacturing sector. We find that R&D activities and human resource development conducted by MNEs stimulate knowledge diffusion from MNEs to domestic firms, while knowledge diffusion from MNEs without such activities is absent. Moreover, R&D activities by a domestic firm are also found to promote knowledge diffusion from MNEs to the firm, although this ... De nombreux travaux de recherche ont utilisé des données au niveau des entreprises pour évaluer la diffusion de compétences depuis les firmes multinationales vers les entreprises nationales dans les pays moins développés. Cependant, ces travaux n’ont pas permis de dégager un consensus sur l’existence ou non de retombées. Ces résultats contradictoires peuvent peut-être s’expliquer par une mauvaise prise en compte des efforts de diffusion tant nationaux qu’étrangers. Ce Document technique inclut donc les activités de R&D et le développement des ressources humaines initiés par les multinationales et par les entreprises locales afin d’examiner si ces activités renforcent la diffusion du savoir à partir des multinationales. Pour ce faire, les auteurs ont utilisé des données au niveau des entreprises du secteur manufacturier indonésien. Il en ressort que les activités des multinationales en R&D et développement des ressources humaines favorisent la diffusion du savoir vers les ...

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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Development Centre Working Papers with number 196.

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Date of creation: Aug 2002
Date of revision:
Handle: RePEc:oec:devaaa:196-en

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Cited by:
  1. Anabel Marin & Martin Bell, 2006. "Technology spillovers from Foreign Direct Investment (FDI): the active role of MNC subsidiaries in Argentina in the 1990s," Journal of Development Studies, Taylor & Francis Journals, vol. 42(4), pages 678-697.
  2. Lipsey, Robert & Sjöholm, Fredrik, 2004. "Host Country Impacts Of Inward Fdi: Why Such Different Answers?," EIJS Working Paper Series 192, The European Institute of Japanese Studies.
  3. Della Temenggung, 2007. "Productivity Spillovers from Foreign Direct Investment: Indonesian Manufacturing Industry’s Experience 1975-2000," DEGIT Conference Papers c012_048, DEGIT, Dynamics, Economic Growth, and International Trade.
  4. Marin, Anabel & Sasidharan, Subash, 2008. "The Heterogeneity of MNC' Subsidiaries and Technology Spillovers: Explaining positive and negative effects in emerging economies," MERIT Working Papers 066, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  5. Marin, Anabel & Bell, Martin, 2010. "The local/global integration of MNC subsidiaries and their technological behaviour: Argentina in the late 1990s," Research Policy, Elsevier, vol. 39(7), pages 919-931, September.
  6. Andrea Fernández-Ribas & Philip Shapira, 2009. "Technological diversity, scientific excellence and the location of inventive activities abroad: the case of nanotechnology," The Journal of Technology Transfer, Springer, vol. 34(3), pages 286-303, June.
  7. Marin, Anabel & Costa, Ionara, 2009. "Thinking locally: Exploring the importance of a subsidiary-centered model of FDI-related spillovers in Brazil," MERIT Working Papers 008, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).


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