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Firm networks and global technology diffusion

Author

Listed:
  • Bastos, Paulo
  • Stapleton, Katherine
  • Taglioni, Daria
  • Wei, Hannah Yi

Abstract

This paper examines how multinational firms and global value chain linkages facilitate the cross-country diffusion of emerging technologies. Leveraging detailed data on online job postings across 17 countries and multinational firm linkages from 2014 to 2022, we analyze the propagation of jobs related to emerging technologies through firm networks. Our findings reveal that emerging technology jobs are highly concentrated within multinational firms and their supply chains, with nearly one-third of postings from Fortune 500 firms, their affiliates, buyers, suppliers, or innovation partners. Although related job openings initially cluster in locations where technologies originate, this advantage diminishes over time as technologies diffuse to wealthier and geographically closer countries and regions. This paper highlights the important role of firm-to-firm linkages in channeling technology diffusion: firms that were previously buyers or innovation partners of establishments in technology-originating locations exhibit faster growth in technology-related jobs.

Suggested Citation

  • Bastos, Paulo & Stapleton, Katherine & Taglioni, Daria & Wei, Hannah Yi, 2026. "Firm networks and global technology diffusion," Journal of International Economics, Elsevier, vol. 161(C).
    • Handle: RePEc:eee:inecon:v:161:y:2026:i:c:s0022199626000309
    DOI: 10.1016/j.jinteco.2026.104240
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    Keywords

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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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