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Competence-creating subsidiaries and FDI technology spillovers

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  • Ha, Yoo Jung
  • Giroud, Axèle

Abstract

Building on International Business research on subsidiary activities, this paper investigates the relationship between the type of innovation-intensive activities in an MNE subsidiary and FDI spillovers. Our results show that competence-creating activities by MNE subsidiaries generate significantly different horizontal and vertical spillovers compared with competence-exploiting activities. The findings suggest that FDI spillovers are influenced by the dynamic development of technological and strategic roles in a subsidiary in the dispersed innovation network of an MNE.

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  • Ha, Yoo Jung & Giroud, Axèle, 2015. "Competence-creating subsidiaries and FDI technology spillovers," International Business Review, Elsevier, vol. 24(4), pages 605-614.
  • Handle: RePEc:eee:iburev:v:24:y:2015:i:4:p:605-614
    DOI: 10.1016/j.ibusrev.2014.11.001
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    Cited by:

    1. Rajneesh Narula & André Pineli, 2016. "Multinational Enterprises and Economic Development in Host Countries: What We Know and What We Don’t Know," John H Dunning Centre for International Business Discussion Papers jhd-dp2016-01, Henley Business School, Reading University.

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