The multinational enterprise as a source of international knowledge flows: Direct evidence from Italy

Nigel Driffield, James H Love and Stefano Menghinello
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James H Love: Economics and Strategy Group, Aston Business School, Aston University, Birmingham, UK
Stefano Menghinello: [1] Economics and Strategy Group, Aston Business School, Aston University, Birmingham, UK[2] Istituto nazionale di statistica (ISTAT), Direzione centrale statistiche economiche strutturali, Rome, Italy

Journal of International Business Studies, 2010, vol. 41, issue 2, 350-359

Abstract: This paper examines the determinants of technology transfer between parent firms and their international affiliates, and of knowledge spillovers from those affiliates to host-country firms. Using a unique data set of foreign multinational enterprise (MNE) affiliates based in Italy, we find that affiliate investment in R&D and investment in capital-embodied technology plays a significant role in determining the nature of intra-firm technology flows. However, the basis for any spillovers arising from MNE affiliates does not originate from codified knowledge associated with R&D, but rather from the productivity of the affiliate.

Date: 2010
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