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CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology KTH/CESIS Working Paper Series in Economics and Institutions of Innovation

No 87:
The Innovative Performance of Foreign-owned Enterprises in Small Open Economies

Bernhard Dachs (), Bernd Ebersberger () and Hans Lf ()

Abstract: This paper compares the innovative performance of foreign-owned and domestically owned enterprises in five European countries. We look at innovation inputs, outputs, and examine how strong foreign-owned enterprises are embedded in the innovations systems of their host countries. We find that foreign ownership causes no differences in innovation input, but yields a higher innovation output and higher labour productivity. In four of the five countries, affiliates of foreign multinationals show a similar or even a higher propensity to co-operate with domestic partners than domestically owned enterprises

Keywords: Austria; Denmark; Finland; Norway; Sweden; Innovation; Multinational Enterprises; Foreign-owned Enterprises; CIS; (follow links to similar papers)

JEL-Codes: F23; O31; (follow links to similar papers)

21 pages, April 16, 2007

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