The Innovative Performance of Foreign-owned Enterprises in Small Open Economies
Bernhard Dachs,
Bernd Ebersberger () and
Hans Lööf ()
Additional contact information Bernd Ebersberger: Management Center Innsbruck, Innsbruck, Austria
Abstract:
This paper compares the innovative performance of foreign-owned and domestically owned enterprises in five European countries. We look at innovation inputs, outputs, and examine how strong foreign-owned enterprises are embedded in the innovations systems of their host countries. We find that foreign ownership causes no differences in innovation input, but yields a higher innovation output and higher labour productivity. In four of the five countries, affiliates of foreign multinationals show a similar or even a higher propensity to co-operate with domestic partners than domestically owned enterprises