Economics at your fingertips  

Foreign R&D satellites as a medium for the international diffusion of knowledge

Joel Blit ()

Canadian Journal of Economics, 2018, vol. 51, issue 4, 1118-1150

Abstract: I examine the extent to which foreign R&D satellites of multinational firms act as a medium for the international diffusion of knowledge. Using patents from the United States Patent and Trademark Office, I compare the frequency with which headquarters patents are cited by third-party firms in the satellite's host country relative to a control group of patents, and this both before and after the establishment of the satellite (using a difference-in-differences approach). The results suggest that the satellite increases the flow of knowledge from the multinational's headquarters to firms in the satellite's host country. This satellite effect on knowledge diffusion is largest in host countries and sectors with strong but not world-class capabilities that have both the motivation and absorptive capacity to learn from foreign parties. The findings also suggest that knowledge diffusion is greatest when satellites are staffed with inventors that have previously either patented with other local firms (thus having stronger local social networks) or with the headquarters (thus having headquarters knowledge).

JEL-codes: O3 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link) (text/html)
access restricted to subscribers

Related works:
Journal Article: Foreign R&D satellites as a medium for the international diffusion of knowledge (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Katherine Cuff

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().

Page updated 2023-03-26
Handle: RePEc:cje:issued:v:51:y:2018:i:4:p:1118-1150