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Foreign ownership and domestic cooperation for innovation during good and harsh economic times

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  • Antonio García-Sánchez
  • Ruth Rama

Abstract

A sample of firms active in the Spanish information and communication technology sector during 2003-2014 is analysed to assess whether foreign subsidiaries are likely to make a technological contribution to domestic innovative capabilities during expansive phases of the business cycle and during recessions. Domestic firms are used as a control group. Innovative foreign subsidiaries are more likely than non-innovative foreign subsidiaries to cooperate for innovation with local partners. However, the most advanced foreign subsidiaries seem reluctant to engage in local cooperation for innovation. Foreign subsidiaries have shown greater capability than domestic firms in increasing their collaboration with local partners during the 2008 crisis.

Suggested Citation

  • Antonio García-Sánchez & Ruth Rama, 2020. "Foreign ownership and domestic cooperation for innovation during good and harsh economic times," International Journal of Multinational Corporation Strategy, Inderscience Enterprises Ltd, vol. 3(1), pages 4-25.
    • Handle: RePEc:ids:ijmcst:v:3:y:2020:i:1:p:4-25
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    Cited by:

    1. Antonio García-Sánchez & Ruth Rama, 2022. "Cooperative innovation and crises: Foreign subsidiaries, state-owned enterprises, and domestic private firms [Directorship Interlocks in Comparative Perspective: The Case of Spain]," Science and Public Policy, Oxford University Press, vol. 49(6), pages 915-927.

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