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Does foreign ownership facilitate cooperation on innovation? Firm-level evidence from the enlarged European Union

Listed author(s):
  • Martin Srholec


    (Centre for Technology, Innovation and Culture, University of Oslo.)

Innovation is generally a combination of productive means that are internal and external to a firm. Some of the external resources can be obtained locally, but for some of them firms need to venture abroad. Arrangements to cooperate on innovation facilitate access to the external sources of knowledge. Using a large data set of firms in 12 countries from the third Community Innovation Survey, including seven new European Union members, we examine whether foreign ownership promotes cooperation on innovation with non-affiliated partners at home, abroad or both. An estimate of a probit model indicates that foreign affiliates are more likely to channel knowledge through innovation cooperation, although important differences have been found in this relationship between countries at different levels of economic development.L'innovation est généralement une combinaison de moyens productifs internes et externes à une firme. Certaines des ressources externes peuvent être obtenues localement, mais d'autres ne peuvent être obtenues qu'à l'étranger. Certaines mesures de coopération concernant l'innovation peuvent faciliter l'accès à des sources externes de connaissance. A partir d'une base de données sur les firmes de douze pays, provenant de la troisième enquête sur l'innovation communautaire, comprenant sept nouveaux membres de l'UE, nous examinons si l'appartenance étrangère encourage la coopération avec des partenaires non-associés à la maison-mère, que ce soit dans le pays d'origine de la firme, à l'étranger, ou les deux. Une évaluation d'un modèle probit indique que les filiales étrangères ont plus tendance à canaliser des connaissances innovatrices à travers la coopération, bien que des différences importantes existent dans cette relation entre pays de différents niveaux de développement économique.European Journal of Development Research (2009) 21, 47–62. doi:10.1057/ejdr.2008.9

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Article provided by Palgrave Macmillan & European Association of Development Research and Training Institutes (EADI) in its journal European Journal of Development Research.

Volume (Year): 21 (2009)
Issue (Month): 1 (February)
Pages: 47-62

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Handle: RePEc:pal:eurjdr:v:21:y:2009:i:1:p:47-62
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