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Multinational enterprises and innovation: firm level evidence on spillover via R&D collaboration
KTH, School of Architecture and the Built Environment (ABE), Transport and Economics, Economics.ORCID iD: 0000-0002-5871-8571
2009 (English)In: Journal of evolutionary economics, ISSN 0936-9937, E-ISSN 1432-1386, Vol. 19, no 1, 41-71 p.Article in journal (Refereed) Published
Abstract [en]

This paper estimates the knowledge spillovers to multinational enterprises (MNEs) in Sweden via domestic and foreign R&D collaboration. Applying an augmented generalized method of moments-estimator that accounts for selectivity and simultaneity bias on data from 1,249 MNEs, our research has resulted in five distinct conclusions. First, we find that the knowledge spillovers via R&D collaboration typically take place as a network phenomenon rather than a process between the local firm and a single innovation partner. Second, successful collaboration is conditional on the presence of foreign innovation partners in the network. Third, output is found to be an increasing function of R&D-collaboration only among non-export oriented firms. Fourth, foreign MNEs, selling mainly to local and regional markets in Sweden, benefit more from R&D collaboration than do other firms. Overall, the results show that demand-driven motives that require entrepreneurial knowledge to adapt products to local consumers and markets are more important for successful R&D-collaboration than supply-driven motives.

Place, publisher, year, edition, pages
2009. Vol. 19, no 1, 41-71 p.
Keyword [en]
Innovation, Multinational enterprises, R&D collaboration, Spillovers, international technology diffusion, foreign subsidiaries, globalization, investment, industries, network
URN: urn:nbn:se:kth:diva-18107DOI: 10.1007/s00191-008-0103-yISI: 000262549800003ScopusID: 2-s2.0-58549104111OAI: diva2:336153
QC 20100525Available from: 2010-08-05 Created: 2010-08-05 Last updated: 2011-01-12Bibliographically approved

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