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Capability flows and technological diversification within multi-locational firms in Europe

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  • Anthony Frigon

Abstract

This paper examines the sources of capabilities influencing technological diversification in multi-locational firms in Europe. Using European patent records and firm ownership and geographical information, 686 firms with patenting activities across different locations are analysed. Three main capability sources are identified: individual establishments, their locations, and other units of the parent firm. Findings underscore the primary role of the establishment’s accumulated capabilities, with location-based capabilities and other units of the firm also having a positive and significant impact. However, the influence of each capability source varies with the technology’s novelty. Separating domestic from between-country intra-firm flows further reveals that domestic flows exert a stronger influence in shaping technological diversification. This paper overall enriches our understanding of capability sources in the development of new technologies in the particular case of multi-locational firms, further extending the existing body of work by looking at these dynamics within the European context.

Suggested Citation

  • Anthony Frigon, 2024. "Capability flows and technological diversification within multi-locational firms in Europe," Industry and Innovation, Taylor & Francis Journals, vol. 31(10), pages 1240-1263, November.
    • Handle: RePEc:taf:indinn:v:31:y:2024:i:10:p:1240-1263
    DOI: 10.1080/13662716.2024.2340620
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