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Local Learning from Multinational Plants: Knowledge Transfers in the Supply Chain

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  • Mike Crone
  • Stephen Roper

Abstract

Knowledge and local learning are central to current debates about regional economic development. Using data provided by multinational plants, this paper provides new evidence on the geography of knowledge, emphasizing the proximity of Northern Ireland-based multinational plants to global best practice but highlighting what are, in some cases, substantial 'knowledge gaps' to local suppliers. The paper also examines the incidence of various activities that might facilitate the transfer of knowledge from multinationals to their suppliers, and investigates the impact of these activities on the competitiveness of local supplier companies. Our results indicate that there is considerable scope for local learning by the suppliers of multinational plants, and show that many of these multinational plants are currently engaged in a range of knowledge transfer activities with their suppliers. However, the results also suggest that in small regions, such as Northern Ireland, weak local supply chains will tend to result in a socially sub-optimal level of knowledge transfer to local firms. Policy intervention may therefore be required both to strengthen local supply chains and also to provide alternative mechanisms to allow local firms to learn from multinational plants. La connaissance et l'apprentissage local sont au coeur des debats actuels a propos du developpement economique regional. A partir des donnees aupres des etablissements multinationaux, cet article cherche a fournir des preuves recentes sur la geographie de la connaissance, soulignant que les etablissements multinationaux situes en Irlande du Nord s'approchent des habitudes les plus courantes sur le plan mondial, tout en mettant l'accent sur, dans certains cas, d'importants 'ecarts de connaissance' pour ce qui est de leurs fournisseurs locaux. L'article cherche aussi aexaminer la probabilite que certaines activites facilitent le transfert de la connaissance des multinationales a leurs fournisseurs locaux, et etudie l'impact de ces activites sur la competitivite de ces derniers. Les resultats laissent voir que les possibilites pour les fournisseurs des etablissements multinationaux d'apprendre sur le plan local s'averent considerables, et demontrent que bon nombre de ces etablissements multinationaux se livrent actuellement a un eventail d'actions qui facilitent le transfert de la connaissance a leurs fournisseurs. Toujours est-il que les resultats laissent supposer que dans les regions de taille petite, telle l'Irlande du Nord, les circuits de distribution faibles ont tendance a avoir un niveau de transfert de la connaissance aux entreprises locales qui n'est pas a son optimum. Peut-etre faudra-t-il de l'intervention politique non seulement pour consolider les circuits de distribution locaux, mais aussi afin de fournir d'autres dispositifs qui permettront aux entreprises locales d'apprendre aux etablissements multinationaux. Kenntnisse und ihre Vermittlung am Orte spielen eine wesentliche Rolle bei aktuellen Diskussionen uber regionale Wirtschaftsentwicklung. Mit Hilfe von Daten, die multinationale Betriebe zur Verfugung stellten, liefert dieser Aufsatz neue Beweise einer Geographie der Kenntnisse, wobei die Vertrautheit in Nordirland angesiedelter multinationaler Betriebe mit global als fuhrend anerkannten Verfahrensweisen betont, doch auch andere, zuweilen betrachtliche 'Bildungslucken' bei einheimischen Zulieferern hervorgehoben werden. Dieser Aufsatz pruft daruberhinaus die Haufigkeit verschiedener Anstrengungen, die Ubermittlung von Kenntnissen von multinationalen Betrieben an ihre Zulieferer zu ermoglichen, und untersucht die Wirksamkeit dieser Bemuhungen betreff Wettbewerbsfahigkeit einheimischer Lieferfirmen. Die Ergebnisse zeigen, dass sich Belieferern multinationaler Betriebe mancherlei Gelegenheiten am Orte bieten, Kenntnisse zu erwerben, und dass in vielen dieser multinationalen Betriebe Lieferanten zur Zeit reichlich Gelegenheit zum Erwerb von Kenntnissen geboten wird. Die Ergebnisse deuten jedoch auch darauf hin, dass in kleinen Regionen, wie Nordirland, schwache ortsansassige Zuliefererketten meist dazu neigen, zu einer sozial unter Spitzenklasse verbleibenden Vermittlung von Kenntnissen fur einheimische Firmen zu fuhren. Es konntendeshalbpolitischeEingriffenotigwerden, um einheimische Zuliefererketten zu starken, und auch um alternative Mechnismen einzurichten, die einheimischen Firmen gestatten, von multinationalen Firmen zu lernen.

Suggested Citation

  • Mike Crone & Stephen Roper, 2001. "Local Learning from Multinational Plants: Knowledge Transfers in the Supply Chain," Regional Studies, Taylor & Francis Journals, vol. 35(6), pages 535-548.
  • Handle: RePEc:taf:regstd:v:35:y:2001:i:6:p:535-548
    DOI: 10.1080/00343400120065705
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    References listed on IDEAS

    as
    1. Bjørn Asheim & Michael Dunford, 1997. "Regional Futures," Regional Studies, Taylor & Francis Journals, vol. 31(5), pages 445-455.
    2. Crone, Mike & Roper, Stephen, 1999. "Knowledge Transfers from Multi-national Plants in Northern Ireland," ERSA conference papers ersa99pa053, European Regional Science Association.
    3. Stephen Young & Ping Lan, 1997. "Technology Transfer to China through Foreign Direct Investment," Regional Studies, Taylor & Francis Journals, vol. 31(7), pages 669-679.
    4. Mansfield, Edwin, 1975. "International Technology Transfer: Forms, Resource Requirements, and Policies," American Economic Review, American Economic Association, vol. 65(2), pages 372-376, May.
    5. Edwin Mansfield & Anthony Romeo, 1980. "Technology Transfer to Overseas Subsidiaries by U. S.-Based Firms," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 95(4), pages 737-750.
    6. Kevin Morgan, 1997. "The Learning Region: Institutions, Innovation and Regional Renewal," Regional Studies, Taylor & Francis Journals, vol. 31(5), pages 491-503.
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