Resource title

Multinational firms and knowledge diffusion: evidence using patent citation data

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How actively do local subsidiaries of foreign MNCs exchange knowledge with their host countries? To what extent does this facilitate cross-border knowledge diffusion between the MNC home base and the host country? To address these issues, the author uses over one million patent citations to analyze micro-level knowledge flows in six of the most innovating countries. He finds that there are significant bi-directional knowledge flows between MNCs and their host countries, but that MNCs gain more than they contribute. The pattern varies across countries and sectors, depending on the knowledge-intensity of FDI.

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en

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application/pdf

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http://flora.insead.edu/fichiersti_wp/inseadwp2004/2004-75.pdf

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Copyright INSEAD. All rights reserved