Local technological competence and asset-seeking FDI: an empirical study of manufacturing and wholesale affiliates in Sweden

Inge Ivarsson and Thommy Jonsson

International Business Review, 2003, vol. 12, issue 3, 369-386

Abstract: This paper focuses on asset-seeking FDI where foreign TNCs tap into localised technological sources in order to augment their own firm-specific competencies. We use unique firm-level data from majority-owned foreign affiliates (MOFAs) located in West Sweden and investigate their technology development activities and to what purposes this is being put to use. The findings indicate that in a substantial number of MOFAs, the operations are part of an asset-seeking strategy, where the technological competence generated through MOFAs' internal R&D operations, as well as through inter-firm collaboration with local business partners, especially customers, are not only aimed at local market adaptation, but also exploited internationally. Among manufacturing MOFAs this takes the form of export production, as well as a geographical transfer of technology to other corporate units, while among MOFAs engaged in the wholesale of industrial products, it basically takes the latter form.

Keywords: Asset-seeking; FDI; Local; business; linkages; International; technology; transfer; Manufacturing; industry; Wholesale; industry (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (14)

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