The multinational enterprise as a source of international knowledge flows: Direct evidence from Italy
Nigel Driffield (),
James H Love and
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James H Love: Economics and Strategy Group, Aston Business School, Aston University, Birmingham, UK
Stefano Menghinello:  Economics and Strategy Group, Aston Business School, Aston University, Birmingham, UK Istituto nazionale di statistica (ISTAT), Direzione centrale statistiche economiche strutturali, Rome, Italy
Journal of International Business Studies, 2010, vol. 41, issue 2, 350-359
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.
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