Working Paper: CEPR ID: DP2337
Authors: Reinhilde Veugelers; Bruno Cassiman
Abstract: External knowledge is an important input for the innovation process of firms. Increasingly, this knowledge is likely to originate from outside of their national borders. This explains the preoccupation of policymakers with stimulating local technology transfers coming from international firms. We find that firms that have access to the international technology market are more likely to transfer technology to the local economy. In doing so, we qualify the traditional assertion that multinational firms are more likely to transfer technology to the local economy. Once controlled for the superior access to the international technology market that multinationals enjoy, we find that these firms are not more likely to transfer technology to the local economy compared to exporting or local firms that have access to the international technology market. In summary, the main result of this paper is that it is not so much the international character of the firms, but rather their access to the international technology market that is important for generating external knowledge transfers to the local economy.
Keywords: technology transfer; channels; multinationals; access to international knowhow; local transfers of knowhow
JEL Codes: D21; F23; L16; O23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Access to the international technology market (O36) | Local technology transfers (F16) |
| Multinational status (F23) | Local technology transfers (F16) |
| Access to international technology market (O36) | Multinational status (F23) |
| Cooperation in R&D (O32) | Local technology transfers (F16) |
| International sourcing (L24) | Local technology transfers (F16) |