Knowledge breadth of MNC subsidiaries and the duration of host-country firms' search

Alessandra Perri, Raffaele Oriani and Francesco Rullani ()

No 7, Working Papers from Venice School of Management - Department of Management, Università Ca' Foscari Venezia

Abstract: The aim of this paper is to investigate the factors influencing the speed at which knowledge flows from foreign to domestic firms. The focus is not on whether a knowledge spillover occurs, but on the time it takes to spread the MNC subsidiary knowledge in the local area. Filling the gap about spillover speed in International Business by means of the insights from Innovation Studies Ðspecifically, the literature on search and NK modelling-, we propose a conceptual model where the speed of local knowledge diffusion is influenced by subsidiariesÕ technology sourcing strategies. We then test our model using a database covering 1336 US patents from the semiconductors sector. We find that not only the breadth of the set of subsidiariesÕ knowledge sources slows down local knowledge diffusion, but that the delay is mainly related to the diversity of global and internal sources used by the subsidiary, hinting at strategies that MNCs can use to further protect their knowledge.

Keywords: Speed; Search; Foreign subsidiaries; Local firms (search for similar items in EconPapers)
JEL-codes: M16 O32 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2013-07
New Economics Papers: this item is included in nep-cse
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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