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


  • 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

Suggested Citation

  • Martin Srholec, 2009. "Does foreign ownership facilitate cooperation on innovation? Firm-level evidence from the enlarged European Union," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 21(1), pages 47-62, February.
  • Handle: RePEc:pal:eurjdr:v:21:y:2009:i:1:p:47-62

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    Cited by:

    1. Martin Srholec, 2011. "A multilevel analysis of innovation in developing countries ," Industrial and Corporate Change, Oxford University Press, vol. 20(6), pages 1539-1569, December.
    2. Martin Srholec, 2015. "Understanding the diversity of cooperation on innovation across countries: multilevel evidence from Europe," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 24(1-2), pages 159-182, March.
    3. Štěpán Jurajda & Juraj Stančík, 2013. "Organization and Firm Performance in the Czech Republic," Prague Economic Papers, University of Economics, Prague, vol. 2013(1), pages 85-110.
    4. Andrea Caragliu & Camilla Lenzi & Miroslav Šipikal & Milan Buček, 2013. "The role of FDIs in regional innovation: Evidence from the automotive industry in Western Slovakia," Regional Science Policy & Practice, Wiley Blackwell, vol. 5(4), pages 475-490, November.
    5. Adelheid Holl & Ruth Rama, 2014. "Foreign Subsidiaries and Technology Sourcing in Spain," Industry and Innovation, Taylor & Francis Journals, vol. 21(1), pages 43-64, January.
    6. Fagerberg, Jan & Srholec, Martin & Verspagen, Bart, 2010. "Innovation and Economic Development," Handbook of the Economics of Innovation, Elsevier.
    7. Matthias Siller & Christoph Hauser & Janette Walde & Gottfried Tappeiner, 2014. "The Multiple Facets of Regional Innovation," Working Papers 2014-19, Faculty of Economics and Statistics, University of Innsbruck.
    8. Rahmouni, Mohieddine & Ayadi, Mohamed & YIldIzoglu, Murat, 2010. "Characteristics of innovating firms in Tunisia: The essential role of external knowledge sources," Structural Change and Economic Dynamics, Elsevier, vol. 21(3), pages 181-196, August.
    9. Jaan Masso & Tõnu Roolaht & Urmas Varblane, 2010. "Foreign Direct Investment And Innovation In Central And Eastern Europe: Evidence From Estonia," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 67, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    10. Jiang, Ling (Alice) & Waller, David S. & Cai, Shaohan, 2013. "Does ownership type matter for innovation? Evidence from China," Journal of Business Research, Elsevier, vol. 66(12), pages 2473-2478.

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