Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 456: Technology Transfer to Foreign Affiliates by Multinational Enterprises Technology Transfer to Foreign Affiliates by Multinational Enterprises

Gunnar Fors
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Gunnar Fors: Research Institute of Industrial Economics (IFN)

Abstract: This paper examines whether Swedish multinational enterprises transfer R&D-generated knowledge to their foreign affiliates. The empirical results suggest that such technology transfer takes place from parent companies to affiliates, especially in the case of newly established affiliates. In process industries, R&D undertaken in the affiliates seems to facilitate the transfer from the parent, highlighting the role of "receiver competence." The findings also support the view that technology is "embodied" in intermediary goods deliveries from parents to foreign affiliates. Embodied transfer appears to be more important to affiliates located in developing countries.

Keywords: Technology Transfer; Multinationals; Foreign Affiliates

JEL-codes: F23; O32

25 pages, April 1996

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