Patterns of local R&D cooperation of foreign subsidiaries in an intermediate country: innovative and structural factors

Abstract

We attempt to contribute to a better understanding of cooperative innovation patterns of foreign subsidiaries (FS) in Spain as a representative intermediate country, going deeply into three main aspects: firstly, a sectoral taxonomy which combines international technological dynamism and revealed technological advantage as a way to understand such patterns. Secondly we focus our attention on innovative intensive subsidiaries, assuming they are the most important ones for hosting countries. Thirdly, we combine innovation and structural-competitive variables to explain local cooperation. We found more intense cooperation of FS with local agents in dynamic specialization sectors, as well as the fact that this is mostly carried out in a complementary mode with inner knowledge capabilities of the companies. Cooperative activities are influenced by economicstructural factors of the Spanish economy, particularly in highly innovative companies. Cooperative strategies of domestic firms might also have an influence on those of foreign subsidiaries. Index

Different Ways to Access Knowledge for Sustainability-Oriented Innovation. The Effect of Foreign Direct Investment

“…The results of this comparative analysis align with the literature, which distinguishes the cooperation models of foreign and national companies [25,88] and, more specifically, with those studies that establish that companies with FDI have a greater propensity to cooperate in R&D [26,87].…”

“…Subsidiaries may benefit more from undertaking R&D cooperation with customers and competitors, whose deeper knowledge of local conditions better complements the more global knowledge base of subsidiaries. In contrast, domestic firms may benefit more from engaging in R&D cooperation with suppliers and universities, whose more global nature of knowledge better complement the deeper local knowledge base of domestic firms Probit regressions with random effects [87] To contribute a better understanding of cooperative innovation patterns of foreign subsidiaries in Spain, looking more closely at sectoral taxonomy. Attention is focused more on innovative intensive subsidiaries and innovation and structural-competitive variables are combined to explain local cooperation Company has cooperated with external partners (own business group excluded) located in Spain More intense cooperation of FS with local agents in dynamic specialisation sectors.…”

New challenges in European innovation partnerships. SOEs, POEs and foreign MNEs during crises

“…However, other authors have argued that opportunities to collaborate should also be considered since possession of technical or commercial capital determines the attractiveness of a rm to potential partners (Ahuja, 2000). In choosing partners, companies appraise both their technical skills and their market potential (Bianchi et al, 2019;García-Sánchez et al, 2017). When analyzing industrial partnerships, Friedberg and Neuville (1999) observe that decisions are contingent upon the perceived quality of the rms involved.…”