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Multinational Enterprises and Innovation: Firm level evidence on spillover via R&D collaboration
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Economics.ORCID iD: 0000-0002-5871-8571
2007 (English)Report (Other academic)
Abstract [en]

This paper estimates the knowledge spillovers to multinational firms (MNEs) in Sweden via domestic and foreign R&D collaboration. Applying an augmented GMM-estimator that accounts for both selectivity and simultaneity bias on data from 1,249 MNEs, our research has resulted in five distinct conclusions. First, we find that the knowledge spillovers via R&D collaboration typically take place as a network phenomenon rather than a process between the local firm and a single innovation partner. Second, successful collaboration is conditional on foreign innovation partners in the network. Third, output is found to be an increasing function of R&D-collaboration only among non-export oriented firms. Fourth, foreign MNEs selling mainly to local and regional markets in Sweden benefit more from R&D collaboration than other firms. Overall, the results show that demand driven motives that require entrepreneurial knowledge to adapt products to local consumers and markets are more important for successful R&D-collaboration than supply driven motives.

Place, publisher, year, edition, pages
CESIS, KTH Royal Institute of Technology , 2007. , 35 p.
CESIS Working Paper Series in Economics and Institutions of Innovation, 90
Keyword [en]
Innovation, multinational enterprises, R&D collaboration, spillovers
National Category
URN: urn:nbn:se:kth:diva-72344OAI: diva2:487513
QC 20120208Available from: 2012-02-08 Created: 2012-01-31 Last updated: 2012-02-08Bibliographically approved

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