Multinational enterprises and innovation : firm level evidence on spillover via R&D collaboration

• This paper estimates the knowledge spillovers to multinational enterprises (MNEs) in Sweden via domestic and foreign R&D collaboration. Applying an augmented generalized method of moments-estimator that accounts for 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 the presence of 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 do 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.

Nyckelord

Innovation

Multinational enterprises

R&D collaboration

Spillovers

international technology diffusion

foreign subsidiaries

globalization

investment

industries

network

Publikations- och innehållstyp

ref (ämneskategori)

art (ämneskategori)