Does internationalisation of technology determine technological diversification in large firms?
The purpose of the paper is to examine the relationship between technological diversification and internationalisation of technology for large multinational firms, operating at the world technological frontier. More precisely we address the question as to whether internationalisation determines diversification. The analysis is based on a rich database of the European patenting activity of 345 large multinational firms with the highest levels of patenting over two periods of time (1988-1990 and 1994-1996). The relationship is tested using a variety of different regression models. The results show that for the sample as a whole there is no statistically significant relationship between technological diversification and internationalisation of technology. However when the sample is disaggregated according to the predominant internationalisation strategy adopted by a firm, we find a statistically significant relationship. Our results show that in a cross-section of firms adopting a homebase- augmenting strategy, internationalisation determines the level of diversification. Thus amongst such large firms a higher level of internationalisation of technology is associated with a greater level of diversification.
|Date of creation:||10 Jan 2005|
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- Cantwell, John & Piscitello, Lucia, 2000. "Accumulating Technological Competence: Its Changing Impact on Corporate Diversification and Internationalization," Industrial and Corporate Change, Oxford University Press, vol. 9(1), pages 21-51, March.
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- Guellec, Dominique & Pottelsberghe de la Potterie, Bruno v., 2001.
"The internationalisation of technology analysed with patent data,"
Elsevier, vol. 30(8), pages 1253-1266, October.
- Bruno Van Pottelsberghe & Dominique Guellec, 2001. "The internationalisation of technology analysed with patent data," ULB Institutional Repository 2013/6223, ULB -- Universite Libre de Bruxelles.
- Patel, Pari & Vega, Modesto, 1999. "Patterns of internationalisation of corporate technology: location vs. home country advantages1," Research Policy, Elsevier, vol. 28(2-3), pages 145-155, March.
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