Research Note
Journal of International Business Studies advance online publication 24 September 2009; doi: 10.1057/jibs.2009.57
The multinational enterprise as a source of international knowledge flows: Direct evidence from Italy
Nigel Driffield1, James H Love1 and Stefano Menghinello1,2
- 1Economics and Strategy Group, Aston Business School, Aston University, Birmingham, UK
- 2Istituto nazionale di statistica (ISTAT), Direzione centrale statistiche economiche strutturali, Rome, Italy
Correspondence: JH Love, Economics and Strategy Group, Aston Business School, Aston University, Birmingham B4 7ET, UK. Tel: +44 121 204 3162; Fax: +44 121 204 3306; E-mail: j.h.love@aston.ac.uk
Received 12 March 2008; Revised 5 June 2009; Accepted 24 June 2009; Published online 24 September 2009.
Abstract
This paper examines the determinants of technology transfer between parent firms and their international affiliates, and of knowledge spillovers from those affiliates to host-country firms. Using a unique data set of foreign multinational enterprise (MNE) affiliates based in Italy, we find that affiliate investment in R&D and investment in capital-embodied technology plays a significant role in determining the nature of intra-firm technology flows. However, the basis for any spillovers arising from MNE affiliates does not originate from codified knowledge associated with R&D, but rather from the productivity of the affiliate.
Keywords:
technology transfer, knowledge spillovers, technology sourcing
