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Policies to Encourage Inflows of Technology Through Foreign Multinationals

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  • Magnus Blomstrom
  • Ari Kokko

Abstract

Do host countries aiming to maximize the inflows of technology through foreign multinationals have any policy alternatives to formal technology transfer requirements and performance requirements? To answer this question, the present paper examines some possible determinants of the technology imports of U.S. majority-owned foreign affiliates in 33 host countries. The results show that the affiliates' technology imports increase with the host countries' domestic investment levels and education levels, but that various performance requirements are negatively related to technology transfer. This suggests that policies promoting local investment, competition, and education may sometimes be alternatives to direct controls and requirements.

Suggested Citation

  • Magnus Blomstrom & Ari Kokko, 1993. "Policies to Encourage Inflows of Technology Through Foreign Multinationals," NBER Working Papers 4289, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:4289
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    References listed on IDEAS

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    1. Magnus Blomström & Ari Kokko & Mario Zejan, 2000. "Host Country Competition, Labour Skills, and Technology Transfer by Multinationals," Palgrave Macmillan Books, in: Foreign Direct Investment, chapter 14, pages 221-231, Palgrave Macmillan.
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    3. Magnus Blomström & Ari Kokko & Mario Zejan, 2000. "Technology, Market Characteristics and Spillovers," Palgrave Macmillan Books, in: Foreign Direct Investment, chapter 10, pages 160-176, Palgrave Macmillan.
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    6. Homi Katrak, 1991. "Market Rivalry, Government Policies and Multinational Enterprise in Developing Countries," Palgrave Macmillan Books, in: Peter J. Buckley & Jeremy Clegg (ed.), Multinational Enterprises in Less Developed Countries, chapter 5, pages 92-110, Palgrave Macmillan.
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    More about this item

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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