Vertical technology transfer via international outsourcing

Pack, Howard; Saggi, Kamal

doi:10.1016/s0304-3878(01)00142-0

Cited by 141 publications

(139 citation statements)

References 11 publications

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“…Dyer and Nobeoka (2000), Pack and Saggi (2001) and Takeishi (2001) have emphasized the value-creation aspects of vertical relationships by highlighting the mutual benefits of active supplier involvement in innovation activities. Alcácer and Oxley (2014) bring both value creation and value capture together in their analysis of supplier-buyer relationships in the wireless handset industry.…”

Section: The Competitive Advantages and Strategies Of Firmsmentioning

confidence: 99%

Internationalization in the information age: A new era for places, firms, and international business networks?

2016

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The new techno-economic paradigm of the information age has brought about new structures and processes in international business (IB). In this article, we examine the changing nature of the competitive advantages of places, the competitive advantages and strategies of firms, and the governance structure of IB networks in what has also been called the third industrial revolution. These three areas of change in IB activities can be mapped respectively to the location (L), ownership (O) and internalization (I) advantages of the eclectic paradigm. We interpret these OLI factors as dynamic constructs in order to depict analytically the shifts in the IB environment and their implications for IB.

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Section: The Competitive Advantages and Strategies Of Firmsmentioning

confidence: 99%

Internationalization in the information age: A new era for places, firms, and international business networks?

2016

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“…They find that intentional multinational enterprise assistance is an important factor influencing local firms' productivity. Pack and Saggi (2001) provide a theoretical treatment of vertical technology transfer. These studies clearly demonstrate the importance of knowledge transfer instead of knowledge spillovers.…”

Section: Vertical Linkagesmentioning

confidence: 99%

Collecting the Pieces of the FDI Knowledge Spillovers Puzzle

Smeets¹

2008

The World Bank Research Observer

235

145

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Recent surveys of the empirical literature have concluded that the evidence is mixed on the magnitude, direction, and even existence of knowledge spillovers from foreign direct investment (FDI). This article reviews the recent theoretical and empirical literature that responds to these inconclusive results and considers three main issues: spillover channels, mediating factors, and FDI heterogeneity. Studies that take into account individual spillover channels find robust evidence of knowledge spillovers from FDI. Studies on the importance of mediating factors and FDI heterogeneity are less conclusive and could benefit from greater convergence in methodologies and greater specificity in the spillover channels of interest. More generally, many studies do not properly distinguish between knowledge spillovers and knowledge transfers, and empirical studies seem to greatly outnumber theoretical studies. JEL codes: F23, O33In the face of difficulties associated with capturing spillover effects and the multitude of factors that can influence the extent of spillovers in each economy, we caution researchers about drawing generalized conclusions about the existence of externalities associated with [foreign direct investment] . . . . (Javorcik and Spatareanu 2005, 47) Over the past decade or so a large body of research has examined knowledge spillovers from foreign direct investment (FDI). At several points along the way scholars have paused to take stock of the evidence (Blomström and Kokko 1998;Saggi 2002;Görg and Greenaway 2004). The verdict has largely been inconclusive. Indeed, the empirical inconclusiveness has become so infamous that virtually every study reviewed here begins with this observation as its main motivation. Explanations for the lack of conclusive results have focused on methodological and measurement issues (Görg and Strobl 2001), but this sort of approach has recently been disputed (Lipsey and Sjöholm 2005 The literature has developed in several directions to account for the ambiguity in earlier work. This study reviews these contributions, both theoretical and empirical. To provide some structure in a rapidly expanding field and to identify which approach or combination of approaches is likely to yield the most promising results, the study is structured around three themes. 1 More insight into the conditions under which knowledge spillovers from FDI are most likely to arise is especially important for developing countries. The highly ambiguous evidence to date on the existence of knowledge spillovers from FDI does not seem to warrant the large sums of money spent by governments to attract FDI. 2 After setting the stage in the following section, the article is then structured around figure 1, a representation of the FDI knowledge spillover process and the pieces of the puzzle that may affect it. 3 The section on opening the black box of FDI knowledge spillovers discusses the research on vertical linkages, worker mobility, and demonstration effects. This is followed by a review of the evidence o...

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“…Moreover, those papers do not include R&D investments. Using vertical relationships between upstream and downstream firms, Tyagi (1999), Pack and Saggi (2001) and show that entry can enhance the profits of incumbents. Using asymmetric Stackelberg oligopoly models, Pal and Sarkar (2001) and Mukherjee and Zhao (2009) show the possibilities of increases in existing firms' profits by entry.…”

Section: Introductionmentioning

confidence: 99%

Multi-Market Competition, R&D, and Welfare in Oligopoly

2010

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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 EconStor may AbstractWe investigate a multi-market Cournot model with strategic process R&D investments wherein a multi-market monopolist meets entrants that enter one of the markets. We find that entry can enhance the total R&D expenditure of the incumbent firm. That is, entry can stimulate R&D effort. Moreover, the incumbent's profit nonmonotonically changes as the number of entrants increases. Depending on the fixed entry costs and R&D technologies, both insufficient and excess entry can appear.JEL classification: L13, O32, L11

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Vertical technology transfer via international outsourcing

Cited by 141 publications

References 11 publications

Internationalization in the information age: A new era for places, firms, and international business networks?

Internationalization in the information age: A new era for places, firms, and international business networks?

Collecting the Pieces of the FDI Knowledge Spillovers Puzzle

Multi-Market Competition, R&D, and Welfare in Oligopoly

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