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.
Bibliographical noteThis is a post-peer-review, pre-copyedit version of an article published in Journal of International Business Studies. The definitive publisher-authenticated version Driffield, Nigel L.; Love, James H. and Menghinello, Stefano (2010) The multinational enterprise as a source of international knowledge flows: direct evidence from Italy. Journal of International Business Studies, 41 (2). pp. 350-359. ISSN 0047-2506 is available online at: http://www.palgrave-journals.com/jibs/journal/v41/n2/abs/jibs200957a.html
- technology transfer
- knowledge spillovers
- technology sourcing