Competence-creating subsidiaries and FDI technology spillovers

Yoo Jung Ha and Axèle Giroud

International Business Review, 2015, vol. 24, issue 4, 605-614

Abstract: Building on International Business research on subsidiary activities, this paper investigates the relationship between the type of innovation-intensive activities in an MNE subsidiary and FDI spillovers. Our results show that competence-creating activities by MNE subsidiaries generate significantly different horizontal and vertical spillovers compared with competence-exploiting activities. The findings suggest that FDI spillovers are influenced by the dynamic development of technological and strategic roles in a subsidiary in the dispersed innovation network of an MNE.

Keywords: FDI; Technology spillovers; Competence-creating subsidiaries; MNEs; South Korea (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (29)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:iburev:v:24:y:2015:i:4:p:605-614

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DOI: 10.1016/j.ibusrev.2014.11.001

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