Location Strategies and Knowledge Spillovers

Alcácer, Juan; Chung, Wonzoo

doi:10.1287/mnsc.1060.0637

Cited by 601 publications

(465 citation statements)

References 38 publications

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“…Inward FDI, on the other hand leads to greater access and diffusion of foreign technologies, productivity gains, forward and backward linkage effects and introduction of new skills and organizational practices in host countries. Furthermore, following from the literature on location choice and appropriability conditions relating to FDI (Feinberg and Majumdar 2001;Alcácer and Chung 2007), FDI enhances the ability of the country to absorb potential spillover-benefits related to the investment. Labor mobility of trained employees from multinational corporations (MNCs) to domestic firms increases the social capital stock of domestic firms, resulting in greater availability, absorption and implementation of foreign knowledge.…”

Section: Introductionmentioning

confidence: 99%

Knowledge Spillovers Through FDI and Trade: The Moderating Role of Quality-Adjusted Human Capital

Ali

Cantner

Roy

2017

Foundations of Economic Change

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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. The paper extends the findings of Coe and Helpman (1995) model of R&D spillovers by considering foreign direct investment (FDI) as a channel for knowledge spillovers in addition to imports. Deeper insights on the issue are provided by examining inter-relationship between knowledge spillovers from imports and inward FDI. Moreover, human capital is added to the discussion as one of the appropriability conditions for knowledge spillovers. However, in comparison to most studies that rely on physical, monetary or indicator-based measures of human capital, the current study proposes a quality-based indicator of human capital that allows for better comparison of human capital stock across countries. Quality adjusted human capital is derived by weighting human capital data based on average years of schooling using journal publications in science and technology and patent applications. Using cointegration estimation method on 20 European countries from 1995 to 2010, the direct effects of FDI-related as well as import-related spillovers on domestic productivity are confirmed. Furthermore, a strong complementary relationship is found between knowledge spillovers through the channels of imports and inward FDI implying strong joint effect on domestic productivity. When considering quality-adjusted human capital, countries with better human capital are found to benefit not only from direct productivity effects, but also from absorption and transmission of international knowledge spillovers through imports and inward FDI. Finally, technological distance with the frontier does not appear to play a role in the absorption of knowledge spillovers. Terms of use: Documents in

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Section: Introductionmentioning

confidence: 99%

Knowledge Spillovers Through FDI and Trade: The Moderating Role of Quality-Adjusted Human Capital

Ali

Cantner

Roy

2017

Foundations of Economic Change

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“…Firms whose R&D intensity is greater than (less than or equal to) the benchmark R&D intensity for the industry are classified as R&D leaders (followers). Different weighted and/or unweighted averages are used to define the benchmark (Lev et al 2006;Alcácer and Chung 2007). This approach enables one to consider the sector-specific nature of R&D leaders/followers (i.e.…”

Section: Randd Leaders and Randd Top Spendersmentioning

confidence: 99%

“…mean and/or median) of their R&D intensity (e.g. Alcácer and Chung 2007). In this way, firms with a higher (e.g.…”

Section: Introductionmentioning

confidence: 99%

On the R&D giants’ shoulders: do FDI help to stand on them?

Montresor

Vezzani

2014

Econ Polit Ind

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We investigate the impact of outward Foreign Direct Investments (FDI) on the Multinational Corporations technological leadership, meant as the capacity of entering and remaining among the top Research & Development (R&D) world investors. The research hypotheses are formulated by distinguishing FDI in R&D from FDI in other economic activities. The findings support our hypotheses with respect to the top R&D circles of the European Industrial Research and Innovation Scoreboard. Increasing the number of FDI projects in R&D makes the entrance in these circles more probable. The same holds true for non-R&D FDI, but with a lower impact. The number of R&D-FDI also reduces the probability of exiting from the circles, while that of non-R&D ones does not. These results are robust when the value of FDI projects in R&D is considered, apart from their impact on the exit from the circles, which appears to vanish. Although with caveats, the policy support to R&D internationalization provides companies with a sustainable competitive advantage in the race for the most substantial R&D investments and for the entailed economic and financial benefits.

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“…They conclude more-intense interfirm knowledge spillovers create greater competition when the markets in which the firms compete are similar. When firms share few similar markets, greater levels of imitation and mutual learning boost competition (Alcácer and Chung 2007). In sum, the more interfirm knowledge spillovers are spatially bounded, the higher the knowledge cluster characteristics, the higher the overlap in the final markets, and the higher the firm rivalry.…”

Section: Knowledge Clustermentioning

confidence: 99%

Organizational Attributes and the Distribution of Rewards in a Region: Managerial Firms vs. Knowledge Clusters

Gambardella

Giarratana

2010

Organization Science

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T his paper expands the organization theory and evidence on regional industrial agglomerations. We define regional economic activities according to the attributes of the organizations that populate a region and investigate how organizational characteristics influence macro-outcomes at a regional economic level. We focus on two dimensions emerging from two widely known organizational forms: the managerial corporation and the knowledge cluster with a marked orientation toward interfirm knowledge spillovers. We use an original data set of 146 U.S. cities to obtain variations in the extent to which they are populated by managerial firms or knowledge clusters. By utilizing city-level measures of managerial salaries, we test how the intensity of managerial corporation versus knowledge cluster characteristics affects the mean and dispersion of the "rewards" of cities. Our evidence suggests that higher managerial corporate characteristics lower the variability of rewards, while they have no effect on the mean of rewards. Higher-knowledge cluster characteristics produce both higher dispersion and higher expected rewards. We explain these results by looking at the different learning mechanisms of the two organizational types. In so doing, we highlight the role of intra-and interfirm knowledge processes as important sources of differences in the rewards of the two models. From an empirical point of view, results are confirmed using both patent-based and skill mobility-based measures of knowledge spillovers.

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Location Strategies and Knowledge Spillovers

Cited by 601 publications

References 38 publications

Knowledge Spillovers Through FDI and Trade: The Moderating Role of Quality-Adjusted Human Capital

Knowledge Spillovers Through FDI and Trade: The Moderating Role of Quality-Adjusted Human Capital

On the R&D giants’ shoulders: do FDI help to stand on them?

Organizational Attributes and the Distribution of Rewards in a Region: Managerial Firms vs. Knowledge Clusters

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