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The multinational enterprise as a source of international knowledge flows: Direct evidence from Italy

Author

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  • Nigel Driffield

    (Economics and Strategy Group, Aston Business School, Aston University, Birmingham, UK)

  • James H Love

    (Economics and Strategy Group, Aston Business School, Aston University, Birmingham, UK)

  • Stefano Menghinello

    ([1] Economics and Strategy Group, Aston Business School, Aston University, Birmingham, UK[2] Istituto nazionale di statistica (ISTAT), Direzione centrale statistiche economiche strutturali, Rome, Italy)

Abstract

This paper examines the determinants of technology transfer between parent firms and their international affiliates, and of knowledge spillovers from those affiliates to host-country firms. Using a unique data set of foreign multinational enterprise (MNE) affiliates based in Italy, we find that affiliate investment in R&D and investment in capital-embodied technology plays a significant role in determining the nature of intra-firm technology flows. However, the basis for any spillovers arising from MNE affiliates does not originate from codified knowledge associated with R&D, but rather from the productivity of the affiliate.

Suggested Citation

  • Nigel Driffield & James H Love & Stefano Menghinello, 2010. "The multinational enterprise as a source of international knowledge flows: Direct evidence from Italy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 350-359, February.
    • Handle: RePEc:pal:jintbs:v:41:y:2010:i:2:p:350-359
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