Holl, Adelheid and Rama, Ruth (2012): Foreign subsidiaries and technology sourcing in Spain.
Download (177Kb) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||Foreign subsidiaries and technology sourcing in Spain|
|Keywords:||Multinational enterprise, foreign subsidiaries, R&D outsourcing, cooperation for innovation, multivariate probit model|
|Subjects:||F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms; International Business
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O32 - Management of Technological Innovation and R&D
|Depositing User:||Adelheid Holl|
|Date Deposited:||05. Nov 2012 14:19|
|Last Modified:||12. Feb 2013 06:38|
Abramovsky, L., R. Griffith, G. Macartney and H. Miller (2008) The location of innovative activity in Europe. The Institute for Fiscal Studies WP08/10.
Ahuja, G. (2000) Collaboration networks, structural holes, and innovation: A longitudinal study. Administrative Science Quarterly, 45(3): 425.
Almeida, P. (1996) Knowledge sourcing by foreign multinationals: Patent citation analysis in the U.S. semiconductor industry. Strategic Management Journal, 17: 155-65.
Almeida, P. (2004) Subsidiaries and knowledge creation: The influence of the MNC and host country on innovation. Strategic Management Journal, 25: 847-64.
Andersson, U., I. Björkman and M. Forsgren (2005) Managing subsidiary knowledge creation: The effecr of control mechanisms on subsidiary local embeddedness. International Business Review, 14: 521-38.
Audretsch, B.D. and Feldman, M. P. (1996) R&D spillovers and the geography of innovation and production, American Economic Review 86 (3): 630-640.
Bayona, C., T. García-Marco and E. Huerta (2001) Firm's motivations for cooperative R&D: an empirical analysis of Spanish firms. Research Policy, 30: 1289-307.
Belderbos, R., G. Capannelli and K. Fukao (2001) Backward vertical linkages of foreign manufacturing affiliates: evidence from Japanese multinationals. World Development, 29(1): 189-208.
Belderbos, R., M. Carree, B. Diederen, B. Lokshin and R. Veugelers (2004), Heterogeneity in R&D Cooperation Strategies, International Journal of Industrial Organization, 22 (8-9): 1237-1263.
Bellandi, M. (2001) Local development and embedded large firms. Entrepreneurship & Regional Development, 13: 189-210.
Beneito, P. (2002) Technological patterns among Spanish manufacturing firms. Entrepreneurial & Regional Development, 14: 89-115.
Beneito, P. (2006) The innovative performance of in-house and contracted R&D in terms of patents and utility models. Research Policy, 35: 502-17.
Boehe, D.M. (2007) Product development in MNC subsidiaries: Local linkages and global interdependencies. Journal of International Management, 13: 488-512.
Buckley, P.J. and M. Casson (1998) Models of the multinational enterprise. Journal of International Business Studies, 20(1): 21-44.
Cámaras de Comercio (2008) La subcontratación industrial en España. Tecnología y competitividad. Madrid.
Cantwell, J. and G.D. Santangelo (2002) The significance of European small country regions in the geographical division of labour of European information and communication technology (ICT) corporations. IJTM, 24(7/8): 663-79.
Cappellari, L. and S. P. Jenkins (2003) Multivariate Probit Regression using Simulated Maximum Likelihood. Stata Journal, 3(3), 278-294.
Carboni, O.A. (2010) Heterogeneity in R&D cooperation: an empirical investigation. In CRENOS, Contributi di Ricerca, editor. CRENOS Cagliari (Italy) 2010/29.
Cassiman, B. and R. Veugelers (2006) In Search of Complementarity in the Innovation Strategy: Internal R&D and External Knowledge Acquisition. Management Science, 52 (1): 68-82.
Caves, R.E. (1996) Multinational enterprise and economic analysis. 2nd ed: Cambridge University Press.
Caves, R.E. (1998) Research in International Business: Problems and Prospects. JIBS, 29(1): 5-19.
Chib S and Greenberg E. (1998) Analysis of multivariate probit models. Biometrika 85:347–361.
Chun, H. and S.-B. Mun (2012) Determinants of R&D cooperation in small and medium sized enterprises. Small Business Economics, 39 (2): 419-436.
Clifton, J., D. Díaz-Fuentes and E. Ruiz (2011) Inward FDI in Spain and its policy context. Columbia FDI profiles. Country profiles of inward and outward direct investment, December 30.
Cooke P. (2005) Rational drug design, the knowledge value chain and bioscience megacentres. Cambridge Journal of Economics, 29: 325-341.
Crone, M. and S. Roper (1999) Knowledge transfers from multinational plants in Northern Ireland. Paper presented at Regional Science Association European Congress, Vienna, Austria.
Dachs, B., B. Ebersberger and H. Lööf (2008) The innovative performance of foreign-owned enterprises in small open economies. Journal of Technology Transfer, 33: 393-406.
Dachs B. and B. Ebersberger (2009) Does foreign ownership matter for the innovative activities of enterprises?, International Economics and Economic Policy, 6(1): 41-57.
Dhont-Peltrault, E. and E. Pfister (2011) R&D cooperation versus R&D subcontracting: empirical evidence from French survey data. Econ. Innov. New Techn., 20(4): 309-41.
DiMaggio, P.J. and W.W. Powell (1983) The iron cage resivited: Institutional isomorphism and collective rationality in organizational field. American Sociological Review, 48(April): 147-60.
Dunning, J.H. and S.M. Lundan (2009) The internationalization of corporate R&D: A review of the evidence and some policy implications for home countries. Review of Policy Research, 26(1-2): 13-34.
Edler, J. (2008) Creative internationalization: widening the perspectives on analysis and policy regarding international R&D activities. Journal of Technology Transfer, 33: 337-52.
European-Commission (2008) Europe in figures. EUROSTAT Yearbook 2008. Luxembourg.
Fagerberg, J. and M.M. Godinho (2006) Innovation and catching-up. In Fagerberg, J., D.C. Mowery, and R.R. Nelson, editors, The Oxford Handbook of Innovation. Oxford: Oxford University Press.
Faria, P. and T. Schmidt (2012) International cooperation on innovation: firm-level evidence from two European countries. Innovation: Management, Policy & Practice 14 (3): 304 - 324.
Florida, R. (1997) The globalisation of R&D: Results of a survey of foreign-affiliated R&D laboratories in the USA. Research Policy, 26: 85-103.
Gallié, E.-P. and P. Roux (2010) Forms and determinants of R&D collaboration: evidence based on French data. Industry and Innovation, 17(6): 551-71.
García-Vega, M. and E. Huergo (2011) Determinants of international R&D outsourcing: the role of trade. Review of Development Economics, 15(1): 93-107.
Gertler, M. and Levitte, Y. (2005) Local nodes in global networks: The geography of knowledge flows in biotechnology innovation. Industry and Innovation, 12, 487-507.
Hagedoorn, J. and R. Narula (1996) Choosing organizational modes of strategic technology partnering: International and sectorial differences. Journal of International Business Studies, 27(2): 265-84.
Hagedoorn, J. (1993) Understanding the rationale of strategic technological partnering: Interorganizational modes of cooperation and sectoral differences. Strategic Management Journal, 14: 371-385.
Hagedoorn, J. (2002) Inter-firm R&D partnerships: an overview of major trends and patterns since 1960. Research Policy, 31: 477–492.
Herstad, S.J., C. Bloch, Ebersberger. B. and E. van de Velde (2010) National innovation policy and global open innovation: exploring balances, tradeoffs and complementarities. Science and Public Policy, 37(2): 113-24.
Hitt, M.A., H. Lee and E. Tucel (2002) The importance of social capital to the management of multinational enterprises: Relational networks among Asian and Western firms. Asia Pacific J Management, 19: 353-72.
Holl, A., R. Pardo and R. Rama (2012) Comparing outsourcing patterns in FDI and manufacturing plants: empirical evidence from Spain. European Planning Studies 20 (8): 1335-1357.
Hsuan, J. and V. Mahnke (2011) Outsourcing R&D: a review, model and research agenda. R&D Management, 41(1): 1-7.
Jabbour, L. (2009) The Drivers of the Offshore Outsourcing of R&D: Empirical Evidence from French Manufacturers. With Maria Pluvia Zuniga, GEP Research Paper 2009/04.
Knell, M. and M. Srholec (2006) Innovation cooperation and foreign ownership in the Czech Republic. http://www.merit.unu.edu/MEIDE/papers/2007/KNELL_SRHOLEC_Innovation%20cooperation%20and%20foreign%20ownership%20in%20the%20Czech%20Republic.pdf
Kuemmerle, W. (1999) Foreign direct investment in industrial research in the pharmaceutical and electronics industries- results from a survey of multinationals. Research Policy, 28: 179-93.
Lenz-Cesar, F. and Heshmati, A. (2012) An econometric approach to identify determinants of cooperation for innovation among firms. Applied Economics Letters, 19:3, 227-235.
Lööf, H. (2009) Multinational enterprises and innovation: firm level evidence on spillover via R&D collaboration. Journal of Evolutionary Economics, 19: 41-71.
López, A. (2011) The effect of microaggregation on regression results: An application to Spanish innovation data, MPRA Paper No. 30403, Munich Personal RePEc Archive.
Lopez, A. (2008) Determinants of R&D cooperation: Evidence from Spanish manufacturing firms. International Journal of Industrial Organization, 26: 113-36.
Love, J. H. and Roper, S. (2009). Organizing the innovation process: Complementarities in innovation networking. Industry and Innovation, 16(3), 273-290.
Maskell, P., Pedersen, T., Petersen, B. and Dick-Nielsen, J. (2007). Learning Paths to Offshore Outsourcing: From Cost Reduction to Knowledge Seeking,. Industry and Innovation, 14(3), 225-239.
McCann, P. and R. Mudambi (2004) The location behaviour of the multinational enterprise: some analytical issues. Growth and Change, 35: 491-524.
Miotti, L. and F. Sachwald (2003) Co-operative R&D: why and whith whom? An integrated framework of analysis. Research Policy, 32: 1481-99.
Molero, J. and J. Heijs (2002) Differences of innovative behaviour between national and foreign firms: measuring the impact of foreign firms on national innovation systems. Int.J.Entrepreneurship and Innovation Management, 2(2/3): 122-45.
Molero, J., J. Portela and I. Álvarez (2009) Innovative MNEs' subsidiaries in different domestic environments. In ICEI, editor. Madrid. Morris, J. (1992) Flexible internationalisation in the electronics industry: implications for regional economies. Environment and Planning C, 10: 407-21.
Nachum, L. and D. Keeble (2001) External networks and geographic clustering as sources of MNE advantages: foreign and indigenous professional service firms in Central London. In ESRC Centre for Business Research, University of Cambridge, Working Paper no.195, editor. Cambridge: University of Cambridge, CBR Research Programme on Small and Medium-sized Enterprises, Working Paper no.195.
Nachum, L. and D. Keeble (2003) MNE linkages and localised clusters: foreign and indigenous firms in the media cluster of Central London. Journal of International Management, 9: 171-912.
Nilsson A. (2001) Biotechnology firms in Sweden. Small Business Economics, 17: 93-103.
Perkmann, M. (2006) Extraregional linkages and the territorial embeddedness of multinational branch plants: Evidence from the South Tyrol region in Northeast Italy. Economic Geography, 82(4): 421-41.
Pfaffermayr, M. and C. Bellak. (2002). Why foreign-owned firms are different: a conceptual framework and empirical evidence for Austria, in: Jungnickel, R. (ed.). Foreign-Owned Firms - Are They Different? Palgrave Macmillan, Houndmills, pp13-57.
Powell, W., Koput, K. and Smith-Doerr, L. (1996) Interorganizational collaboration and the locus of innovation: networks of learning in biotechnology. Administrative Science Quarterly, 41: 116–45.
Rilla, N. and M. Squicciarini (2011) R&D (re)location and offshore outsourcing: a management perspective. International Journal of Management Reviews, 13: 393-413.
Robles Fernández, M. D., González Serrano, L. and Laguna Sánchez, P. (2009) Patterns in Domestic vs. International Cooperative Agreements: The Spanish Case; paper presented at the XI Conference on International Economics.
Schmidt, T. (2007) Motives for innovation Co-operation – evidence from the Canadian Survey of Innovation, ZEW Discussion Paper, nº 07-018, Manheim.
Schmiedeberg, C. (2008) Complementarities of innovation activities: an empirial analysis of the German manufacturing sector. Research Policy, 37: 1492-503.
Segarra-Blasco, A. and J.M. Arauzo-Carod (2008) Sources of innovation and industry-university interaction: evidence from Spanish firms: Research Policy 37 (8):1283-95.
Srholec, M. (2009) Does Foreign Ownership Facilitate Cooperation on Innovation? Firm-level Evidence from the Enlarged European Union. European Journal of Development Research, 21, 47-62.
Srholec, M., (2011) Understanding the heterogeneity of cooperation on innovation: Firm-level evidence from Europe," Working Papers on Innovation Studies 20111201, Centre for Technology, Innovation and Culture, University of Oslo.
Tavares, A. T. and Young S. (2006) Sourcing patterns of foreign-owned multinational subsidiaries in Europe. Regional Studies, 40: 583--599.
Tödtling, F., M. Grillitsch, C. Höglinger (2012) Knowledge Sourcing and Innovation in Austrian ICT companies: How does Geography matter?. Industry and Innovation 19 (4): 327-348.
Teirlinck, P., M. Dumont and A. Spithoven (2010) Corporate decision-making in R&D outsourcing and the impact on internal R&D employment intensity. Industrial and Corporate Change, 19(6): 1741-68.
UNCTAD, editor (2001) World Investment Report 2001. Promoting Linkages. New York and Geneva: United Nations Conference on Trade and Development.
Vega-Jurado, J., A. Guitiérrez-Garcia and I. Fernández-de-Lucio (2009) Does external knowledge sourcing matter for innovation? Evidence from the Spanish manufacturing industry. Industrial and Corporate Change, 18(4): 637-70.
Veugelers, R. and B. Cassiman (1999) Make and Buy in Innovation Strategies: Evidence from Belgian Manufacturing Firms. Research Policy 28(1): 63-80.
Veugelers, R. and B. Cassiman (2004) Foreign subsidiaries as a channel of international technology diffusion: Some direct firm level evidence from Belgium. European Economic Review, 48: 455-76.
Westney, D.E. (1987) Internal and external linkages in the MNC: The case of R&D subsidiaries in Japan. In Bartlett, C.A., G. Hedland, and Y. Doz, editors, Managing the Multinational.
Zaheer, S. (1995) Overcoming the Liability of Foreignness. Academy of Management 38(2): 341-63.