IDEAS home Printed from https://ideas.repec.org/a/umk/journl/v3y2011i3p415-444.html
   My bibliography  Save this article

International Integration and Mandates of Innovative Subsidiaries in Spain

Author

Listed:
  • Isabel Álvarez

    () (Departamento de Economía Aplicada II Universidad Complutense de Madrid Madrid, Spain)

  • John Cantwell

    () (Rutgers Business School Rutgers University Newark, USA)

Abstract

In this paper, we develop a general framework that integrates diverse driving mechanisms of subsidiaries evolving towards competence creating mandates. The relevant process is the mutual relationship between innovation scope and the internationalization of the market as the primary channel for learning in subsidiaries, and how the opportunity for units to gain competence creating mandates is notably influenced by their embeddedness in export networks. This has direct implications for increasing the international channels for learning and indirectly in terms of the effectiveness of host country development. The framework is applied to a sample of firms in the Spanish economy, a country that does not hold a leading position economically and technologically inside the EU bloc, which suggests that the evidence may be suitable for generalizing the organization and network embeddedness of other catching-up economies.

Suggested Citation

  • Isabel Álvarez & John Cantwell, 2011. "International Integration and Mandates of Innovative Subsidiaries in Spain," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 3(3), pages 415-444, October.
  • Handle: RePEc:umk:journl:v:3:y:2011:i:3:p:415-444
    as

    Download full text from publisher

    File URL: http://ijie.um.edu.my/RePEc/umk/journl/v3i3/Fulltext2.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Philip McCann & Ram Mudambi, 2005. "Analytical Differences in the Economics of Geography: The Case of the Multinational Firm," Environment and Planning A, , vol. 37(10), pages 1857-1876, October.
    2. Damijan, Joze P. & Knell, Mark & Majcen, Boris & Rojec, Matija, 2003. "The role of FDI, R&D accumulation and trade in transferring technology to transition countries: evidence from firm panel data for eight transition countries," Economic Systems, Elsevier, vol. 27(2), pages 189-204, June.
    3. Francesca Sanna-Randaccio & Reinhilde Veugelers, 2007. "Multinational knowledge spillovers with decentralised R&D: a game-theoretic approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(1), pages 47-63, January.
    4. repec:wsi:wschap:9789814749237_0010 is not listed on IDEAS
    5. Sourafel Girma & Holger Görg & Mauro Pisu, 2016. "Exporting, linkages and productivity spillovers from foreign direct investment," World Scientific Book Chapters,in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT Volume 53: World Scientific Studies in International Economics, chapter 10, pages 191-211 World Scientific Publishing Co. Pte. Ltd..
    6. Ram Mudambi, 2008. "Location, control and innovation in knowledge-intensive industries," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 699-725, September.
    7. Sourafel Girma, 2005. "Absorptive Capacity and Productivity Spillovers from FDI: A Threshold Regression Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(3), pages 281-306, June.
    8. Anabel Marin & Ionara Costa, 2010. "Thinking locally: exploring the importance of a subsidiary-centred model of FDI-related spillovers in Brazil," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 3(1), pages 87-107.
    9. Igor Filatotchev & Johannes Stephan & Björn Jindra, 2008. "Ownership structure, strategic controls and export intensity of foreign-invested firms in transition economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(7), pages 1133-1148, October.
    10. 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;Academy of International Business, vol. 38(3), pages 460-473, May.
    11. Cantwell, John & Piscitello, Lucia, 2002. "The location of technological activities of MNCs in European regions: The role of spillovers and local competencies," Journal of International Management, Elsevier, vol. 8(1), pages 69-96.
    12. Cantwell, John, 1995. "The Globalisation of Technology: What Remains of the Product Cycle Model?," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 155-174, February.
    13. John Cantwell & Lucia Piscitello, 2007. "Attraction and deterrence in the location of foreign-owned R&D activities: the role of positive and negative spillovers," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 1(1), pages 83-111.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Morero, Hernan Alejandro, 2013. "Internacionalizacion y Sistema Nacional de Innovacion argentino: una perspectiva de tramas productivas. Los casos automotriz y siderurgico
      [Internationlization and argentinean National System of In
      ," MPRA Paper 44409, University Library of Munich, Germany.

    More about this item

    Keywords

    - innovation; mandates; MNC; networks; subsidiaries;

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:umk:journl:v:3:y:2011:i:3:p:415-444. 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: (Teoh Wern Jun). General contact details of provider: http://edirc.repec.org/data/feaummy.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.