Multinational Enterprises and Technological Effort by Local Firms: A Case Study of the Malaysian Electronics and Electrical Industry

H. M. Noor, Roger Clarke and Nigel Driffield

Journal of Development Studies, 2002, vol. 38, issue 6, 129-141

Abstract: It is often assumed that foreign MNEs are the driving force behind technological development in developing economies but it has become evident in recent years that the actions of MNEs in isolation from the domestic economy will not significantly improve the stock of technology in an economy. This study, therefore, examines the determinants of local firms' decisions to undertake technological effort, not only in isolation, but also in the context of linkages between domestic firms and MNEs. There is evidence that linkages between MNEs and local firms are important in explaining technological effort by local firms but direct technological assistance from MNEs does not seem to play a major role in fostering increased technological effort by local firms.

Keywords: multinational enterprises; technological development; developing economies; linkages between MNEs and local firms (search for similar items in EconPapers)
Date: 2002
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DOI: 10.1080/00220380412331322611

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