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Foreign subsidiaries and technology sourcing in Spain

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  • Holl, Adelheid
  • Rama, Ruth

Abstract

Firms acquire external technological knowledge via different channels. In this paper we compare the technology sourcing via R&D outsourcing, R&D outsource offshoring, domestic cooperation for innovation and international cooperation for innovation of foreign subsidiaries and domestic firms. Because the different technology sourcing choices are potentially correlated we apply a multivariate probit specification which allows for systematic correlations among the different choices. The results show that the different technology sourcing choices are indeed interdependent and that foreign subsidiaries show a different pattern of external technology sourcing. Compared to affiliated domestic companies, foreign subsidiaries show a smaller propensity for external technology sourcing via R&D outsourcing from independent firms in the host country, for R&D outsource offshoring, and for international cooperation for innovation. In contrast, foreign subsidiaries show a greater propensity for domestic cooperation for innovation.

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  • Holl, Adelheid & Rama, Ruth, 2012. "Foreign subsidiaries and technology sourcing in Spain," MPRA Paper 42328, University Library of Munich, Germany, revised Oct 2012.
    • Handle: RePEc:pra:mprapa:42328
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    2. Mery Patricia Tamayo & Elena Huergo, 2016. "The Effect of R&D Services Offshoring on Skilled Employment: Firm Evidence," The World Economy, Wiley Blackwell, vol. 39(9), pages 1414-1433, September.
    3. Guimón, José & Salazar, Juan Carlos, 2014. "Collaboration in innovation between foreign subsidiaries and local universities: evidence from Spain," Papers in Innovation Studies 2014/5, Lund University, CIRCLE - Centre for Innovation Research.
    4. Claudio Cozza & Giulio Perani & Antonello Zanfei, 2018. "Multinationals and R&D cooperation: empirical evidence from the Italian R&D survey," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 601-621, August.
    5. Mery Patricia Tamayo & Elena Huergo, 2016. "The Effect of R&D Services Offshoring on Skilled Employment: Firm Evidence," The World Economy, Wiley Blackwell, vol. 39(9), pages 1414-1433, September.
    6. Mery Patricia Tamayo & Estefanía Gómez & Elena Huergo, 2018. "Obstacles to innovation and external sourcing of knowledge: Evidence for German and Spanish firms," Documentos de Trabajo de Valor Público 16257, Universidad EAFIT.
    7. Un, C. Annique & Rodríguez, Alicia, 2018. "Local and Global Knowledge Complementarity: R&D Collaborations and Innovation of Foreign and Domestic Firms," Journal of International Management, Elsevier, vol. 24(2), pages 137-152.
    8. Acosta, Manuel & Coronado, Daniel & Romero, Carlos, 2015. "Linking public support, R&D, innovation and productivity: New evidence from the Spanish food industry," Food Policy, Elsevier, vol. 57(C), pages 50-61.
    9. Fuster, Begoña & Lillo-Bañuls, Adelaida & Martínez-Mora, Carmen, 2020. "Reshoring of services and employment," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 233-246.
    10. Asimakopoulos, Grigorios & Revilla, Antonio & Rodríguez, Alicia, 2023. "International R&D sourcing, innovation and firm age: The advantage of ‘born-international sourcers’," Technovation, Elsevier, vol. 122(C).
    11. Alberto Melane-Lavado & Agustín Álvarez-Herranz, 2018. "Different Ways to Access Knowledge for Sustainability-Oriented Innovation. The Effect of Foreign Direct Investment," Sustainability, MDPI, vol. 10(11), pages 1-30, November.
    12. Si Zhang & Shasha Zhao & Ioannis Bournakis & Robert Pearce & Marina Papanastassiou, 2018. "Subsidiary roles as determinants of subsidiary technology sourcing: empirical evidence from China," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 623-648, August.

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    More about this item

    Keywords

    Multinational enterprise; foreign subsidiaries; R&D outsourcing; cooperation for innovation; multivariate probit model;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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