Heterogeneous MNC Subsidiaries and Technological Spillovers: Explaining Positive and Negative Effects in India

Anabel Marin () and Subash Sasidharan
Additional contact information
Anabel Marin: SPRU: Science and Technology Policy Research, University of Sussex, UK

Working Papers from Madras School of Economics,Chennai,India

Abstract: One of the most intriguing aspects of the recent empirical literature on FDI-related spillover effects is the increasing identification of mixed results. A few studies, particularly in advanced countries have found positive effects; however, a more common scenario in recent studies is the prevalence of insignificant or even negative effects. This is despite the fact that theory predicts substantial positive effects in association with a supposed technological superiority of MNCs relative to domestic firms, particularly in the context of less advanced countries. In this paper, by distinguishing subsidiaries according to their orientation to carry out creative vs. exploitation activities in the host economy, we are able to distinguish situations with positive and negative spillover effects, and we explain why they may be emerging. More specifically, we find that only subsidiaries that are oriented to technologically creative activities have significant and positive effects in India. In contrast, subsidiaries oriented mostly to technologically exploitative activities generate negative effects in some circumstances. The implications for theory and policy are discussed.

Keywords: technological spillovers; MNCs; emerging economies; subsidiaries; heterogeneity (search for similar items in EconPapers)
JEL-codes: O1 O3 O5 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2010-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (47)

Downloads: (external link)
http://www.mse.ac.in/wp-content/uploads/2016/09/working-paper-53.pdf (application/pdf)

Related works:
Journal Article: Heterogeneous MNC subsidiaries and technological spillovers: Explaining positive and negative effects in India (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mad:wpaper:2010-053

Access Statistics for this paper

More papers in Working Papers from Madras School of Economics,Chennai,India Contact information at EDIRC.
Bibliographic data for series maintained by Geetha G ().