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Reverse Technology Transfer: A Patent Citation Analysis of the European Chemical and Pharmaceutical Sectors

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Abstract

One consequence of the internationalisation of R&D, particularly in high-tech sectors such as chemicals and pharmaceuticals, may be the transfer of foreign technology from the multinational to other firms in its home country. This phenomenon, which may be termed inter-firm reverse technology transfer, has not yet been directly analysed by either the international management literature or the literature on foreign direct investment. But its implications for policy – particularly in Europe – may be significant. Drawing on the evolutionary theory of the multinational, and on the concept of embeddedness, this paper is a first attempt at addressing this issue. We test the hypothesis of inter-firm reverse technology transfer by performing a patent citation analysis on a database of USPTO patents applied for by 24 chemical and pharmaceutical companies over the period 1980-99. Our findings suggest that multinationals act as a channel for the transmission of knowledge developed abroad to other home country firms. These results point to an alternative understanding of foreign direct R&D investment and its implications for both the home country’s technological activity, and its competitive performance in general

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  • Paola Criscuolo, 2003. "Reverse Technology Transfer: A Patent Citation Analysis of the European Chemical and Pharmaceutical Sectors," SPRU Working Paper Series 107, SPRU - Science Policy Research Unit, University of Sussex Business School.
    • Handle: RePEc:sru:ssewps:107
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    Cited by:

    1. Fu, Xiaolan & Sun, Zhongjuan & Ghauri, Pervez N., 2018. "Reverse knowledge acquisition in emerging market MNEs: The experiences of Huawei and ZTE," Journal of Business Research, Elsevier, vol. 93(C), pages 202-215.
    2. Ambos, Tina C. & Ambos, Björn & Schlegelmilch, Bodo B., 2006. "Learning from foreign subsidiaries: An empirical investigation of headquarters' benefits from reverse knowledge transfers," International Business Review, Elsevier, vol. 15(3), pages 294-312, June.
    3. Antonio Navas, 2019. "Does FDI generate technological spillovers in the host country? Evidence from patent citations," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(2), pages 399-414, July.
    4. Virginie JACQUIER-ROUX & Christian LE BAS, 2008. "LOCALISATION DES ACTIVITeS DE R D DES FIRMES MULTINATIONALES, MODES D’ORGANISATION EN ReSEAUX ET TRANSFERT TRANSNATIONAL DES CONNAISSANCES : UN CADRE D’ANALYSE," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 28, pages 11-38.
    5. Borini, Felipe Mendes & de Miranda Oliveira, Moacir & Silveira, Franciane Freitas & de Oliveira Concer, Ronald, 2012. "The reverse transfer of innovation of foreign subsidiaries of Brazilian multinationals," European Management Journal, Elsevier, vol. 30(3), pages 219-231.
    6. Manuel Toselli, 2017. "Knowledge sources and integration ties toward innovation. A food sector perspective," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 7(1), pages 43-65, April.
    7. Yongtae Park & Sungjoo Lee & Sora Lee, 2012. "Patent analysis for promoting technology transfer in multi-technology industries: the Korean aerospace industry case," The Journal of Technology Transfer, Springer, vol. 37(3), pages 355-374, June.
    8. Michel, Julie, 2007. "The effects of FDI in R&D on home countries, the case of Switzerland," MPRA Paper 6400, University Library of Munich, Germany.
    9. Yang Gao & Sang-Bing Tsai & Xingqun Xue & Tingzhen Ren & Xiaomin Du & Quan Chen & Jiangtao Wang, 2018. "An Empirical Study on Green Innovation Efficiency in the Green Institutional Environment," Sustainability, MDPI, vol. 10(3), pages 1-13, March.

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    More about this item

    Keywords

    Multinational firms; patent citation; embeddedness; international technology transfer;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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