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Foreign Subsidiaries and Technology Sourcing in Spain

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  • Adelheid Holl
  • Ruth Rama

Abstract

Firms acquire external technological knowledge via different channels. In this paper, we compare the technology sourcing of foreign subsidiaries and domestic firms looking at domestic R&D outsourcing, international R&D outsourcing, domestic cooperation for innovation and international cooperation for innovation. We use data from the Spanish Technological Innovation Panel for the years 2005--2009 for 10,206 innovative firms operating in Spain. We apply a multivariate probit specification which allows for systematic correlations among the different choices. The results show that the different technology sourcing choices are interdependent and that foreign subsidiaries show a different pattern of external technology sourcing. Compared to affiliated domestic companies, foreign subsidiaries show a smaller propensity for external technology sourcing via R&D outsourcing from independent firms in the host country, for international R&D outsourcing and for international cooperation for innovation. In contrast, foreign subsidiaries show a greater propensity for domestic cooperation for innovation. However, foreign subsidiaries are not a homogenous group in this respect.

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  • Adelheid Holl & Ruth Rama, 2014. "Foreign Subsidiaries and Technology Sourcing in Spain," Industry and Innovation, Taylor & Francis Journals, vol. 21(1), pages 43-64, January.
    • Handle: RePEc:taf:indinn:v:21:y:2014:i:1:p:43-64
    DOI: 10.1080/13662716.2014.879254
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    4. Marina Papanastassiou & Robert Pearce & Antonello Zanfei, 2020. "Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: A review of the literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 623-664, June.
    5. Guimón, José & Salazar, Juan Carlos, 2014. "Collaboration in innovation between foreign subsidiaries and local universities: evidence from Spain," Papers in Innovation Studies 2014/5, Lund University, CIRCLE - Centre for Innovation Research.
    6. Mery Patricia Tamayo & Elena Huergo, 2016. "The Effect of R&D Services Offshoring on Skilled Employment: Firm Evidence," The World Economy, Wiley Blackwell, vol. 39(9), pages 1414-1433, September.
    7. Mery Patricia Tamayo & Estefanía Gómez & Elena Huergo, 2018. "Obstacles to innovation and external sourcing of knowledge: Evidence for German and Spanish firms," Documentos de Trabajo de Valor Público 16257, Universidad EAFIT.
    8. Un, C. Annique & Rodríguez, Alicia, 2018. "Local and Global Knowledge Complementarity: R&D Collaborations and Innovation of Foreign and Domestic Firms," Journal of International Management, Elsevier, vol. 24(2), pages 137-152.
    9. Fuster, Begoña & Lillo-Bañuls, Adelaida & Martínez-Mora, Carmen, 2020. "Reshoring of services and employment," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 233-246.
    10. Asimakopoulos, Grigorios & Revilla, Antonio & Rodríguez, Alicia, 2023. "International R&D sourcing, innovation and firm age: The advantage of ‘born-international sourcers’," Technovation, Elsevier, vol. 122(C).
    11. Alberto Melane-Lavado & Agustín Álvarez-Herranz, 2018. "Different Ways to Access Knowledge for Sustainability-Oriented Innovation. The Effect of Foreign Direct Investment," Sustainability, MDPI, vol. 10(11), pages 1-30, November.
    12. Si Zhang & Shasha Zhao & Ioannis Bournakis & Robert Pearce & Marina Papanastassiou, 2018. "Subsidiary roles as determinants of subsidiary technology sourcing: empirical evidence from China," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 623-648, August.

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    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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