The multinational enterprise as a source of international knowledge flows: Direct evidence from Italy
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- Driffield, N., Love, J. & Menghinello, S. J Int Bus Stud (2010) 41: 350. doi:10.1057/jibs.2009.57
This paper examines the determinants of technology transfer between parent firms and their international affiliates, and of knowledge spillovers from those affiliates to host-country firms. Using a unique data set of foreign multinational enterprise (MNE) affiliates based in Italy, we find that affiliate investment in R&D and investment in capital-embodied technology plays a significant role in determining the nature of intra-firm technology flows. However, the basis for any spillovers arising from MNE affiliates does not originate from codified knowledge associated with R&D, but rather from the productivity of the affiliate.