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Knowledge breadth of MNC subsidiaries and the duration of host-country firms' search

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  • Alessandra Perri

    (Università Ca' Foscari Venice)

  • Raffaele Oriani

    (LUISS Guido Carli University)

  • Francesco Rullani

    (LUISS Guido Carli University)

Abstract

The aim of this paper is to investigate the factors influencing the speed at which knowledge flows from foreign to domestic firms. The focus is not on whether a knowledge spillover occurs, but on the time it takes to spread the MNC subsidiary knowledge in the local area. Filling the gap about spillover speed in International Business by means of the insights from Innovation Studies Ðspecifically, the literature on search and NK modelling-, we propose a conceptual model where the speed of local knowledge diffusion is influenced by subsidiariesÕ technology sourcing strategies. We then test our model using a database covering 1336 US patents from the semiconductors sector. We find that not only the breadth of the set of subsidiariesÕ knowledge sources slows down local knowledge diffusion, but that the delay is mainly related to the diversity of global and internal sources used by the subsidiary, hinting at strategies that MNCs can use to further protect their knowledge.

Suggested Citation

  • Alessandra Perri & Raffaele Oriani & Francesco Rullani, 2013. "Knowledge breadth of MNC subsidiaries and the duration of host-country firms' search," Working Papers 7, Department of Management, Università Ca' Foscari Venezia.
    • Handle: RePEc:vnm:wpdman:43
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    1. Shixiang Wang & Minyuan Zhao, 2018. "A tale of two distances: a study of technological distance, geographic distance and multilocation firms," Journal of Economic Geography, Oxford University Press, vol. 18(5), pages 1091-1120.

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    More about this item

    Keywords

    Speed; Search; Foreign subsidiaries; Local firms;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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