Does Co-Location Accelerate Knowledge Outflows from FDI? The Role of MNC Subsidiaries' Technology Sourcing Strategies

Alessandra Perri, Raffaele Oriani and Francesco Rullani ()

No 12-09, DRUID Working Papers from DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies

Abstract: Despite the strategic importance of the knowledge outflows from FDI for local firms’ competitiveness, no study has focused on the speed at which this phenomenon takes place. However, this issue is crucial since the speed at which firms absorb external knowledge influences the time they need to carry out subsequent innovations, their ability to adapt to external changes and enter new markets, thus ultimately affecting their chances to achieve a competitive advantage. This paper tries to fill this gap, by investigating the temporal patterns of knowledge outflows between foreign subsidiaries and firms located in host-regions. Combining International Business literature with insights on Innovation Strategy, we provide evidence on the timing of this phenomenon, and discuss the role played by multinational firms’ technology sourcing strategies.

JEL-codes: O33 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-cse and nep-knm
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Persistent link: https://EconPapers.repec.org/RePEc:aal:abbswp:12-09

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