Innovation and Foreign Ownership

Guadalupe, María; Kuzmina, Olga; Thomas, Catherine

doi:10.2139/ssrn.1717243

Cited by 61 publications

(79 citation statements)

References 57 publications

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“…The authors trace this productivity difference to evidence suggesting that US firms take over already highly productive firms in the United Kingdom. Guadalupe, Kuzmina, and Thomas (2012) confirm the cherry-picking hypothesis with Spanish manufacturing data. In addition, they find that firms acquired by multinationals are more likely to invest in improved firm technology; this finding is explained in terms of improved access to export markets.…”

Section: Productivity Gapsupporting

confidence: 80%

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Financial Constraints and Innovation: Why Poor Countries Don't Catch Up

Gorodnichenko

Schnitzer

2013

Journal of the European Economic Association

381

167

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We examine micro-level channels of how financial development can affect macroeconomic outcomes like the level of income and export intensity. We investigate theoretically and empirically how financial constraints affect a firm's innovation and export activities, using unique firm survey data which provides direct measures for innovations and firm-specific financial constraints. We find that financial constraints restrain the ability of domestically owned firms to innovate and export and hence to catch up to the technological frontiers. This negative effect is amplified as financial constraints force export and innovation activities to become substitutes although they are generally natural complements.JEL classification: O3, O16, F1, G3

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Section: Productivity Gapsupporting

confidence: 80%

“…. This contradicts the suggestion ofGuadalupe, Kuzmina, and Thomas (2012), that access to foreign markets explains the higher innovation activities of firms after being acquired by foreign owners.…”

contrasting

confidence: 74%

Financial Constraints and Innovation: Why Poor Countries Don't Catch Up

Gorodnichenko

Schnitzer

2013

Journal of the European Economic Association

381

167

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“…Furthermore, there are additional motives for investments that may matter equally for employment outcomes. For example, cross-border mergers and acquisitions, which take a considerable share in FDI (Guadalupe, Kuzmina and Thomas 2012;GKT), may also be motivated by market power (Neary 2007), by the desire to gain access to country-or firm-specific assets (Nocke and Yeaple 2007;2008) or by efficiency motives, exploiting economies of scale and scope (Röller, Stennek and Verboven 2001;GKT 2012). The expected effects of FDI through acquisitions depend on whether efficiency increases exist and whether they are large enough to outweigh the reduction in production due to increased market concentration.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Foreign direct investment, heterogeneous workers and employment security: Evidence from Germany

Bachmann

Baumgarten²,

Stiebale

2014

Canadian J of Economics

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We analyze how foreign direct investment (FDI) affects employment security using administrative microdata for German employees. Measuring FDI intensity at the industry level enables us to take into account the sum of direct effects at multinationals as well as indirect effects of FDI throughout the affected industry. We find that both inward and outward FDI significantly reduce employment security. This is particularly the case for inward FDI coming from the western part of the European Union as well as for outward FDI going to Central and Eastern Europe. The effects are sizeable for older and low‐skilled workers.

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“…To examine this issue further, we proceed by adopting a combination of propensity score weighting and a regression estimator, also termed inverse-probabilityweighted regression adjustment (IPWRA), as recommended by Imbens and Wooldridge (2009) and implemented by Guadalupe et al (2012). The firm fixed-effects approach described above accounts for selection based on time-invariant firm characteristics (e.g.…”

Section: Accounting For Potential Selection Biasmentioning

confidence: 99%

The impact of private vs. public ownership on the level and structure of employment

2014

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We examine the effects of private vs. public ownership on the level and structure of employment using uncommonly rich data on the population of Portuguese firms from 1991 to 2009. We find that private ownership is associated with sizeable job losses. This occurs whether we consider privatizations or nationalizations, and the relationship tends to be stronger in the presence of foreign capital. We also find some evidence that private ownership is associated with higher skill utilization, particularly following privatizations and when foreign investment is present. The estimated job losses associated with private ownership are consistent with a theory in which the shift in ownership increases the degree of profit orientation and leads to lower job security.JEL classifications: C23, D21, J45.

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Innovation and Foreign Ownership

Abstract: Question wording (highlighted as in the original questionnaire) Table S1: Variable DefinitionsState whether the company introduced some important modification in the production process (process innovation). If so, state whether it consisted of:

Cited by 61 publications

References 57 publications

Financial Constraints and Innovation: Why Poor Countries Don't Catch Up

Financial Constraints and Innovation: Why Poor Countries Don't Catch Up

Foreign direct investment, heterogeneous workers and employment security: Evidence from Germany

The impact of private vs. public ownership on the level and structure of employment

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