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The innovative performance of foreign-owned enterprises in small open economies

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  • Bernhard Dachs
  • Bernd Ebersberger
  • Hans Lööf

Abstract

This paper compares the innovative performance of foreign-owned and domestically owned enterprises in five European countries. We look at innovation inputs, outputs, and examine how strong foreign-owned enterprises are embedded in the innovations systems of their host countries. We find that foreign ownership causes no differences in innovation input, but yields a higher innovation output and higher labour productivity. In four of the five countries, affiliates of foreign multinationals show a similar or even a higher propensity to co-operate with domestic partners than domestically owned enterprises
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Suggested Citation

  • Bernhard Dachs & Bernd Ebersberger & Hans Lööf, 2008. "The innovative performance of foreign-owned enterprises in small open economies," The Journal of Technology Transfer, Springer, vol. 33(4), pages 393-406, August.
  • Handle: RePEc:kap:jtecht:v:33:y:2008:i:4:p:393-406
    DOI: 10.1007/s10961-007-9058-7
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    More about this item

    Keywords

    Austria; Denmark; Finland; Norway; Sweden; Innovation; Multinational enterprises; Foreign-owned enterprises; CIS; O310; F230;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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