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Patterns of Innovation Practices of Multinational-affiliates in Emerging Economies: Evidences from Brazil and India

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  • Franco, Eliane
  • Ray, Sangeeta
  • Ray, Pradeep Kanta

Abstract

Summary Little is known about how MNE-affiliates are using their linkage capabilities to source or combine technological inputs in emerging economies. This paper attempts to address this critical gap in the literature by comparing and contrasting innovation practices (IPs) employed by MNE-affiliates in two large emerging economies, India and Brazil. Using a sample of over 1200 MNE-affiliates, factor analysis and segmentation techniques identified different combinations of technology inputs for innovation and the factors that influence the knowledge linkages between MNE-affiliates and national innovation systems. Our findings demonstrate the critical role played by host nations' industrial policy in shaping IPs of MNE-affiliates.

Suggested Citation

  • Franco, Eliane & Ray, Sangeeta & Ray, Pradeep Kanta, 2011. "Patterns of Innovation Practices of Multinational-affiliates in Emerging Economies: Evidences from Brazil and India," World Development, Elsevier, vol. 39(7), pages 1249-1260, July.
  • Handle: RePEc:eee:wdevel:v:39:y:2011:i:7:p:1249-1260
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    Cited by:

    1. Bilgili, Tsvetomira V. & Kedia, Ben L. & Bilgili, Hansin, 2016. "Exploring the influence of resource environments on absorptive capacity development: The case of emerging market firms," Journal of World Business, Elsevier, vol. 51(5), pages 700-712.
    2. Frank, Alejandro Germán & Cortimiglia, Marcelo Nogueira & Ribeiro, José Luis Duarte & Oliveira, Lindomar Subtil de, 2016. "The effect of innovation activities on innovation outputs in the Brazilian industry: Market-orientation vs. technology-acquisition strategies," Research Policy, Elsevier, vol. 45(3), pages 577-592.
    3. Kearney, Colm, 2012. "Emerging markets research: Trends, issues and future directions," Emerging Markets Review, Elsevier, vol. 13(2), pages 159-183.
    4. Xiaolan Fu & Wing Thye Woo & Jun Hou, 2016. "Technological innovation policy in China: the lessons, and the necessary changes ahead," Economic Change and Restructuring, Springer, vol. 49(2), pages 139-157, August.
    5. Singh, Alka, 2011. "The Changing Landscape of Public Expenditure and Investments in Agriculture: Implications for Growth Trajectory," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 66(3).
    6. repec:kap:asiapa:v:34:y:2017:i:4:d:10.1007_s10490-017-9527-y is not listed on IDEAS
    7. Anil Nair & Orhun Guldiken & Stav Fainshmidt & Amir Pezeshkan, 2015. "Innovation in India: A review of past research and future directions," Asia Pacific Journal of Management, Springer, vol. 32(4), pages 925-958, December.

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