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Reverse Technology Transfer: A Patent Citation Analysis of the European Chemical and Pharmaceutical Sectors

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Author Info
Paola Criscuolo () (SPRU, University of Sussex)

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Abstract

One consequence of the internationalisation of R&D, particularly in high-tech sectors such as chemicals and pharmaceuticals, may be the transfer of foreign technology from the multinational to other firms in its home country. This phenomenon, which may be termed inter-firm reverse technology transfer, has not yet been directly analysed by either the international management literature or the literature on foreign direct investment. But its implications for policy – particularly in Europe – may be significant. Drawing on the evolutionary theory of the multinational, and on the concept of embeddedness, this paper is a first attempt at addressing this issue. We test the hypothesis of inter-firm reverse technology transfer by performing a patent citation analysis on a database of USPTO patents applied for by 24 chemical and pharmaceutical companies over the period 1980-99. Our findings suggest that multinationals act as a channel for the transmission of knowledge developed abroad to other home country firms. These results point to an alternative understanding of foreign direct R&D investment and its implications for both the home country’s technological activity, and its competitive performance in general

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Publisher Info
Paper provided by University of Sussex, SPRU - Science and Technology Policy Research in its series SPRU Electronic Working Paper Series with number 107.

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Length: 35 pages
Date of creation: 01 Oct 2003
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Handle: RePEc:sru:ssewps:107

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Related research
Keywords: Multinational firms patent citation embeddedness international technology transfer

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Find related papers by JEL classification:
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General

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References listed on IDEAS
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.:
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    Other versions:
  3. Blanc, Helene & Sierra, Christophe, 1999. "The Internationalisation of R&D by Multinationals: A Trade-off between External and Internal Proximity," Cambridge Journal of Economics, Oxford University Press, vol. 23(2), pages 187-206, March.
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    Other versions:
  5. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-40, June. [Downloadable!] (restricted)
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    Other versions:
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  17. Kuemmerle, Walter, 1999. "Foreign direct investment in industrial research in the pharmaceutical and electronics industries--results from a survey of multinational firms," Research Policy, Elsevier, vol. 28(2-3), pages 179-193, March. [Downloadable!] (restricted)
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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. Michel, Julie, 2007. "The effects of FDI in R&D on home countries, the case of Switzerland," MPRA Paper 6400, University Library of Munich, Germany. [Downloadable!]
  2. Reinhard Haupt & Matthias Korgel, 2005. "A Comparison between US and International Patent Classification as Input Data of a Technology Competition-Oriented Cluster Analysis," Jenaer Schriften zur Wirtschaftswissenschaft 20/2005, Friedrich-Schiller-Universit�t Jena, Wirtschaftswissenschaftliche Fakult�t. [Downloadable!]
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