Local discoveries and technological relatedness: the role of MNEs, imports and domestic capabilities

Alessia Lo Turco and Daniela Maggioni

Journal of Economic Geography, 2019, vol. 19, issue 5, 1077-1098

Abstract: We explore the role of intra- and extra-regional product-specific capabilities in the introduction of local discoveries—products new to the firm and to its local market—by Turkish manufacturing firms. We find that product discoveries in a NUTS3 region are favoured by their technological proximity to the product mix of co-located foreign firms. Proximity to co-located domestic firms and local imports does not play any role. The high intensity of local discoveries in novel and exclusive capabilities which foreign affiliates bring into the local economy drives our findings. Finally, we show that the importance of knowledge spilling from foreign affiliates depends on their insidership in the local market, on their product-specific knowledge advantage and on local firms’ absorptive capacity.

Keywords: Firm product innovation; cognitive proximity; foreign affiliates; complexity; Turkey (search for similar items in EconPapers)
JEL-codes: D22 D80 F11 F14 N30 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://hdl.handle.net/10.1093/jeg/lby060 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
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: https://EconPapers.repec.org/RePEc:oup:jecgeo:v:19:y:2019:i:5:p:1077-1098.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Journal of Economic Geography is currently edited by Jorge De la Roca, Stephen Gibbons, Simona Iammarino, Amanda Ross and James Faulconbridge

More articles in Journal of Economic Geography from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().