Papers in Innovation Studies, CIRCLE, Center for Innovation, Research and Competences in the Learning Economy, Lund University
Are multinationals better at creating technical linkages with local firms?
(), Giulio Perani
() and Antonello Zanfei
Abstract: Using data on R&D investors active in Italy and
controlling for various indicators of absorptive capacity and for the
regional distribution of research activities, we show that multinationality
is associated with a higher propensity to technical linkage creation. We
also find that domestic owned multinationals are more inclined to R&D
contracting out, while foreign multinationals are better at developing R&D
cooperation with external parties. However, foreign multinationals are less
prone than domestic companies to set up linkages with local counterparts.
This suggests that while foreign multinationals generally possess
advantages in terms of absorptive capacity and economies of common
governance, they might as well face relative disadvantages in terms of
experience of local contexts, inhibiting their propensity to set up on-site
Keywords: Absorptive capacity; R&D; technical linkages; Multinationals; (follow links to similar papers)
JEL-Codes: F10; F23; O33; (follow links to similar papers)
32 pages, April 27, 2016
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