Scandinavian Working Papers in Economics

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

No 402: Leaning from multinational companies through hiring: An empirical investigation.

Ding Ding ()
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Ding Ding: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden

Abstract: Labor mobility is mechanism for transfer the technology and innovation from multinational firms (MNEs) to non-multinational firms (non-MNEs). In this paper, we use a unique employer-employee data set in Sweden to provide individual-firm match dataset. Using the special research framework, we provide empirical evidence that hiring workers from MNEs can lead to knowledge spillover to non-MNEs and convert to innovation, even after controlling the region, industry and year effect, individuals’ and firms’ characteristics. We find hiring workers from a domestic MNEs generates stronger spillover effects compare to foreign MNEs and higher-educated workers are better able to transfer the knowledge.

Keywords: Multinational enterprise; Ownership; Labor mobility; knowledge spillover

JEL-codes: F23; J61; O33

38 pages, April 13, 2015

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