A regional approach to study technology transfer through foreign direct investment: The electronics industry in two Mexican regions

Padilla-Pérez, Ramón

doi:10.1016/j.respol.2008.03.003

Cited by 53 publications

(21 citation statements)

References 25 publications

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“…2.1 FDI, industrial externalities and firm innovation FDI is generally believed to have positive knowledge spillover effects for domestic firms in both DM and EM recipient countries (Buckley et al, 2002;Kinda, 2010;Padilla-Pérez, 2008). International business (IB) research suggests FDI brings not only capital but also advanced technology, new ideas, and further access to international markets for host country firms (Buckley et al, 2002;Crespo and Fontoura, 2007;Kokko et al, 1996).…”

Section: Theoretical Background and Hypothesis Developmentmentioning

confidence: 99%

Inward FDI spillovers and innovation capabilities in Chinese business: exploring the moderating role of local industrial externalities

Sutherland

Ning

2016

Technology Analysis & Strategic Management

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It is generally believed foreign direct investment (FDI) has spillover effects which can affect the innovation capabilities of local firms in host countries. Comparatively little, however, is known about the contingent local contextual factors that influence how these FDI spillovers can be captured. Integrating the literature on FDI knowledge spillovers with that on inter and intra-industrial externalities we explore how local industrial agglomeration moderates the effect of FDI knowledge spillovers on innovation in the emerging market context of China. Empirical estimates, based on panel data of 1,610 listed indigenous Chinese firms recorded between 2000 and 2010, indicate that such spillovers are more easily captured in industrially diverse settings. By contrast, industrial specialization negatively moderates this relationship. We explore the implications of these findings, considering their relevance for emerging market policy-makers grappling with the challenges of navigating their economies through the 'middle-income-trap' to high-income status by promoting more innovative local firms.

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Section: Theoretical Background and Hypothesis Developmentmentioning

confidence: 99%

Inward FDI spillovers and innovation capabilities in Chinese business: exploring the moderating role of local industrial externalities

Sutherland

Ning

2016

Technology Analysis & Strategic Management

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“…those enjoying technological proximity) may, in turn, find it easier to access potential technological spillovers, by means of reverse engineering technologically-compatible products (Padilla-Pérez, 2008). Technological proximity may therefore foster knowledge diffusion by increasing the probability of the cross-fertilization of ideas.…”

Section: Vehicles Of Knowledge Transfermentioning

confidence: 99%

Space and Knowledge Spillovers in European Regions

Caragliu

Nijkamp

2013

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractUsually, the diffusion of a non-rival market knowledge externality -called a Knowledge Spillover (KS) -is related to geographical proximity. In this paper we explore the channels through which knowledge spreads.Compared with earlier work on KS measures, this study makes a step forward by calculating KS (as a balance of positive and negative absolute knowledge flows) on the basis of different proximity matrices. In particular, we focus on the relational, social, technological, and cognitive channel, along with the traditional geographical channel. In the light of previous studies on KS, we examine: (i) which types of proximity enhance or hamper the outward flow of knowledge; and (ii) whether the local endowment of absorptive capacity reduces such a flow. Our results show that KSs vary across alternative definitions of proximity. The parameter estimates of such a KS model show interesting patterns, with geographical and cognitive proximity having the highest explanatory power among all the types of proximity considered. Local absorptive capacity is found to be negative only when a region is surrounded by regions with similarly high levels of absorptive capacity. Furthermore, outward KSs decrease as geographical, relational, social, technological and cognitive distance increase. This points to the emergence or existence of large clusters of regions ('absorptive capacity clubs'), where relational, social, technological and cognitive proximity lock-in maximizes the returns to local investment in R&D.

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“…Carrillo (2004) presents evidence from a case study of the agglomeration of television‐producing firms in Tijuana that indicates positive learning effects among a limited number of Mexican suppliers. Padilla Perez (2008) presents findings of a similar nature; although FDI firms do offer support in the form of the provision of product specifications and quality control measures, the number of affected suppliers remains limited. Finally, Ivarsson and Alvstam (2005a,b) present detailed findings from their case study of the Swedish multinational Volvo in Puebla.…”

mentioning

confidence: 90%

“…The findings on the level of the use of local suppliers by FDI firms appear to suggest that local suppliers are used only to a moderate degree (OECD 2009a). Although UNCTC (1992) and Martinez‐Solano and Phelps (2003) present findings from surveying FDI firms that suggest that the level of use of suppliers is substantial, 2 other studies find that FDI firms use suppliers to a moderate degree at best (Buitelaar and Padilla Perez 2000; Padilla Perez 2008; Paus and Gallagher 2008; also Kenney and Florida 1994). The main explanation for a low use of local suppliers is that many FDI firms operate in the Maquiladora programme.…”

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confidence: 99%

Local Sourcing and Technology Spillovers to Mexican Suppliers: How Important are FDI and Supplier Characteristics?

Jordaan

2011

Growth and Change

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I present novel direct evidence on the static and dynamic impact of producer firms on local suppliers based on several firm level surveys that I conducted among producer firms and suppliers in Nuevo León, Mexico. I find that the level of use of suppliers does not differ between foreign direct investment (FDI) and Mexican producer firms. Next, I find substantial evidence that FDI firms generate a larger local dynamic impact; foreign-owned firms apply more pressure on their suppliers to improve and are also significantly more involved in the provision of several types of technological and organisational support. In extension of these findings, I use multivariate analysis to identify characteristics of suppliers and supply linkages that influence the dynamic impact among suppliers. I find that the level of absorptive capacity of suppliers, the size of the technology gap between producer firms and suppliers, and the provision of support by producer firms all enhance the likelihood that suppliers experience a large positive dynamic impact. Importantly, even when I control for the effects of these factors, suppliers of FDI firms are still significantly more likely to experience a large positive impact.

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A regional approach to study technology transfer through foreign direct investment: The electronics industry in two Mexican regions

Cited by 53 publications

References 25 publications

Inward FDI spillovers and innovation capabilities in Chinese business: exploring the moderating role of local industrial externalities

Inward FDI spillovers and innovation capabilities in Chinese business: exploring the moderating role of local industrial externalities

Space and Knowledge Spillovers in European Regions

Local Sourcing and Technology Spillovers to Mexican Suppliers: How Important are FDI and Supplier Characteristics?

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