Thinking locally: exploring the importance of a subsidiary-centred model of FDI-related spillovers in Brazil
This paper investigates FDI-related spillovers in Brazil. Contrasting to previous studies on other emerging economies, it found horizontal spillovers. However, spillovers did not arise simply as consequence of technology transfer from MNC headquarters as the standard approach presumes; nor were associated with differences in technological intensity across industries, in domestic firms' absorptive capability. Instead, spillovers were associated with particular kinds of localised knowledge-creation activities by subsidiaries. Those findings have both significant theory and policy implications. They help to make clear the explanatory limitations of the dominant 'centrally-driven' perspectives, and point to the relevance of focusing on subsidiaries' technological behaviour in order to explain the existence or not of FDI-related spillovers. This implies that government policies aiming at simply attracting FDI do not ensure that FDI-related spillovers will automatically take place. Instead, effective policies on this matter should be concerned with the innovative behaviour of already established subsidiaries.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 3 (2010)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.inderscience.com/browse/index.php?journalID=240|
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.:
- Haskel, Jonathan & Pereira, Sonia & Slaughter, Matthew, 2002.
"Does Inward Foreign Direct Investment Boost the Productivity of Domestic Firms?,"
CEPR Discussion Papers
3384, C.E.P.R. Discussion Papers.
- Jonathan E. Haskel & Sonia C. Pereira & Matthew J. Slaughter, 2007. "Does Inward Foreign Direct Investment Boost the Productivity of Domestic Firms?," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 482-496, August.
- Jonathan E. Haskel & Sonia C. Pereira & Matthew J. Slaughter, 2002. "Does Inward Foreign Direct Investment Boost the Productivity of Domestic Firms?," NBER Working Papers 8724, National Bureau of Economic Research, Inc.
- Jonathan E. Haskel & Sonia C. Pereira & Matthew J. Slaughter, 2002. "Does Inward Foreign Direct Investment Boost the Productivity of Domestic Firms?," Working Papers 452, Queen Mary University of London, School of Economics and Finance.
- Anabel Marin & Elisa Giuliani, 2007. "Global and local knowledge linkages: the case of MNE subsidiaries in Argentina," SPRU Working Paper Series 155, SPRU - Science and Technology Policy Research, University of Sussex.
- Pearce, Robert D., 1999. "Decentralised R&D and strategic competitiveness: globalised approaches to generation and use of technology in multinational enterprises (MNEs)," Research Policy, Elsevier, vol. 28(2-3), pages 157-178, March.
- Teece, David J, 1977. "Technology Transfer by Multinational Firms: The Resource Cost of Transferring Technological Know-how," Economic Journal, Royal Economic Society, vol. 87(346), pages 242-61, June.
- Kokko, Ari, 1994. "Technology, market characteristics, and spillovers," Journal of Development Economics, Elsevier, vol. 43(2), pages 279-293, April.
- James Levinsohn & Amil Petrin, 2000.
"Estimating Production Functions Using Inputs to Control for Unobservables,"
NBER Working Papers
7819, National Bureau of Economic Research, Inc.
- James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," Review of Economic Studies, Wiley Blackwell, vol. 70(2), pages 317-341, 04.
- Patibandla, Murali & Sanyal, Amal, 2005. "Foreign Investment and Productivity: A Study of Post-reform Indian Industry," Review of Applied Economics, Review of Applied Economics, vol. 1(1).
- Costa, Ionara & de Queiroz, Sergio Robles Reis, 2002. "Foreign direct investment and technological capabilities in Brazilian industry," Research Policy, Elsevier, vol. 31(8-9), pages 1431-1443, December.
- Crespo, Nuno & Fontoura, Maria Paula, 2007.
"Determinant Factors of FDI Spillovers - What Do We Really Know?,"
Elsevier, vol. 35(3), pages 410-425, March.
- Nuno Crespo & Maria Paula Fontoura, 2005. "Determinant Factors of FDI Spillovers – What Do We Really Know?," Working Papers Department of Economics 2005/06, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," Review of Economic Studies, Oxford University Press, vol. 70(2), pages 317-341.
- Isabel Álvarez & José Molero Zayas, 2004.
"Technology and the Generation of International Knowledge Spillovers. An Application to Spanish Manufacturing Firms,"
Working Papers del Instituto Complutense de Estudios Internacionales
01-04, Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales.
- Alvarez, Isabel & Molero, Jose, 2005. "Technology and the generation of international knowledge spillovers: An application to Spanish manufacturing firms," Research Policy, Elsevier, vol. 34(9), pages 1440-1452, November.
- Cantwell, John & Janne, Odile, 1999. "Technological globalisation and innovative centres: the role of corporate technological leadership and locational hierarchy1," Research Policy, Elsevier, vol. 28(2-3), pages 119-144, March.
- Ramachandran, Vijaya, 1993. "Technology Transfer, Firm Ownership, and Investment in Human Capital," The Review of Economics and Statistics, MIT Press, vol. 75(4), pages 664-70, November.
- 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.
- Haddad, Mona & Harrison, Ann, 1993. "Are there positive spillovers from direct foreign investment? : Evidence from panel data for Morocco," Journal of Development Economics, Elsevier, vol. 42(1), pages 51-74, October.
- Birkinshaw, Julian & Hood, Neil & Young, Stephen, 2005. "Subsidiary entrepreneurship, internal and external competitive forces, and subsidiary performance," International Business Review, Elsevier, vol. 14(2), pages 227-248, April.
- Vinish Kathuria, 2000. "Productivity spillovers from technology transfer to Indian manufacturing firms," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(3), pages 343-369.
- Nigel Driffield & James H Love, 2007. "Linking FDI motivation and host economy productivity effects: conceptual and empirical analysis," Journal of International Business Studies, Palgrave Macmillan, vol. 38(3), pages 460-473, May.
- Ann E. Harrison & Brian J. Aitken, 1999. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," American Economic Review, American Economic Association, vol. 89(3), pages 605-618, June.
- Ionara Costa & Sergey Filippov, 2008. "Foreign-owned subsidiaries: A neglected nexus between foreign direct investment, industrial and innovation policies," Science and Public Policy, Oxford University Press, vol. 35(6), pages 379-390, July.
- John Cantwell & Franceses Sanna-Randaccio, 1993. "Multinationality and firm growth," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 129(2), pages 275-299, June.
- Findlay, Ronald, 1978. "Relative Backwardness, Direct Foreign Investment, and the Transfer of Technology: A Simple Dynamic Model," The Quarterly Journal of Economics, MIT Press, vol. 92(1), pages 1-16, February.
- Kumar, Nagesh, 2001. "Determinants of location of overseas R&D activity of multinational enterprises: the case of US and Japanese corporations1," Research Policy, Elsevier, vol. 30(1), pages 159-174, January.
- Peri, Giovanni & Urban, Dieter, 2006.
"Catching-up to foreign technology? Evidence on the "Veblen-Gerschenkron" effect of foreign investments,"
Regional Science and Urban Economics,
Elsevier, vol. 36(1), pages 72-98, January.
- Giovanni Peri, 2004. "Catching-Up to Foreign Technology? Evidence on the "Veblen-Gerschenkron" Effect of Foreign Investments," NBER Working Papers 10893, National Bureau of Economic Research, Inc.
- Caves, Richard E, 1974. "Multinational Firms, Competition, and Productivity in Host-Country Markets," Economica, London School of Economics and Political Science, vol. 41(162), pages 176-93, May.
- Steven Globerman, 1979. "Foreign Direct Investment and `Spillover' Efficiency Benefits in Canadian Manufacturing Industries," Canadian Journal of Economics, Canadian Economics Association, vol. 12(1), pages 42-56, February.
- Peter J Buckley & Jeremy Clegg & Chengqi Wang, 2007. "Is the relationship between inward FDI and spillover effects linear? An empirical examination of the case of China," Journal of International Business Studies, Palgrave Macmillan, vol. 38(3), pages 447-459, May.
When requesting a correction, please mention this item's handle: RePEc:ids:ijtlid:v:3:y:2010:i:1:p:87-107. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Graham Langley)
If references are entirely missing, you can add them using this form.