Working Paper: CEPR ID: DP2469
Authors: Henrik Braconier; Karolina Ekholm; Karen Helene Midelfart Knarvik
Abstract: Multinational enterprises (MNEs) are important in transmitting technology across national borders. Not only do they allow for transfer of technology within the firm, but it is also believed that they are important channels for international R&D spillovers as well. This paper analyses empirically whether inward and outward foreign direct investment (FDI) work as channels for international R&D spillovers. We utilize firm-level as well as industry-level data for Swedish manufacturing in the analysis. We find no evidence of FDI-related R&D spillovers - neither at the firm-level nor at the industry-level in Swedish manufacturing. The only variable that consistently affects total factor productivity is own investment in R&D.
Keywords: multinationals; spillovers; technology transfer; productivity growth
JEL Codes: F20; F23; O40
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Foreign Direct Investment (FDI) (F21) | R&D spillovers (O36) |
| Firms' own investment in R&D (D25) | Total Factor Productivity (TFP) (D24) |
| Multinational Enterprises (MNEs) (F23) | Technology transmission (O33) |
| High R&D environment in Sweden (O36) | Limiting scope for international spillovers (F42) |