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Policies to Encourage Inflows of Technology Through Foreign Multinationals

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  • Magnus Blomstrom
  • Ari Kokko

Abstract

Do host countries aiming to maximize the inflows of technology through foreign multinationals have any policy alternatives to formal technology transfer requirements and performance requirements? To answer this question, the present paper examines some possible determinants of the technology imports of U.S. majority-owned foreign affiliates in 33 host countries. The results show that the affiliates' technology imports increase with the host countries' domestic investment levels and education levels, but that various performance requirements are negatively related to technology transfer. This suggests that policies promoting local investment, competition, and education may sometimes be alternatives to direct controls and requirements.

Suggested Citation

  • Magnus Blomstrom & Ari Kokko, 1993. "Policies to Encourage Inflows of Technology Through Foreign Multinationals," NBER Working Papers 4289, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:4289
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    References listed on IDEAS

    as
    1. Magnus Blomström & Ari Kokko & Mario Zejan, 2000. "Technology, Market Characteristics and Spillovers," Palgrave Macmillan Books, in: Foreign Direct Investment, chapter 10, pages 160-176, Palgrave Macmillan.
    2. repec:bla:econom:v:41:y:1974:i:162:p:176-93 is not listed on IDEAS
    3. Magnus Blomström & Ari Kokko & Mario Zejan, 2000. "Host Country Competition, Labour Skills, and Technology Transfer by Multinationals," Palgrave Macmillan Books, in: Foreign Direct Investment, chapter 14, pages 221-231, Palgrave Macmillan.
    4. Homi Katrak, 1991. "Market Rivalry, Government Policies and Multinational Enterprise in Developing Countries," Palgrave Macmillan Books, in: Peter J. Buckley & Jeremy Clegg (ed.), Multinational Enterprises in Less Developed Countries, chapter 5, pages 92-110, Palgrave Macmillan.
    5. repec:bla:scandj:v:92:y:1990:i:3:p:487-500 is not listed on IDEAS
    6. Wang, Jian-Ye & Blomstrom, Magnus, 1992. "Foreign investment and technology transfer : A simple model," European Economic Review, Elsevier, vol. 36(1), pages 137-155, January.
    7. Bardhan, Pranab, 1990. "Symposium on the State and Economic Development," Journal of Economic Perspectives, American Economic Association, vol. 4(3), pages 3-7, Summer.
    8. 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.
    9. Steven Globerman, 1979. "Foreign Direct Investment and `Spillover' Efficiency Benefits in Canadian Manufacturing Industries," Canadian Journal of Economics, Canadian Economics Association, vol. 12(1), pages 42-56, February.
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    More about this item

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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