Knowledge Flows between Multinational Enterprises and National Innovation Systems: The Case of Austria

Bernhard Dachs and Bernd Ebersberger

Chapter 2 in Multinationals, Clusters and Innovation, 2006, pp 13-26 from Palgrave Macmillan

Abstract: Abstract The international business (IB) literature regards knowledge spillovers from foreign affiliates to domestic enterprises as one of the major benefits a host economy derives from the presence of multinational enterprises (MNEs) (Blomström and Kokko, 1998). This chapter deals with the opposite situation, and sets out to measure the extent to which innovative MNEs utilize the knowledge base of their host countries. We believe that spillovers from the host country to MNE affiliates are extremely relevant to science and technology policy. Given the fact that innovation is an interactive process that depends heavily on external sources (Edquist, 2005), spillovers may be one of the most important reasons for MNEs to undertake innovative activities at any particular location.

Keywords: Foreign Direct Investment; Propensity Score; Host Country; Innovative Activity; Foreign Ownership (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-62494-8_2

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DOI: 10.1057/9780230624948_2

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