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Does internationalisation of technology determine technological diversification in large firms?

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The purpose of the paper is to examine the relationship between technological diversification and internationalisation of technology for large multinational firms, operating at the world technological frontier. More precisely we address the question as to whether internationalisation determines diversification. The analysis is based on a rich database of the European patenting activity of 345 large multinational firms with the highest levels of patenting over two periods of time (1988-1990 and 1994-1996). The relationship is tested using a variety of different regression models. The results show that for the sample as a whole there is no statistically significant relationship between technological diversification and internationalisation of technology. However when the sample is disaggregated according to the predominant internationalisation strategy adopted by a firm, we find a statistically significant relationship. Our results show that in a cross-section of firms adopting a homebase- augmenting strategy, internationalisation determines the level of diversification. Thus amongst such large firms a higher level of internationalisation of technology is associated with a greater level of diversification.

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  • Christian Le Bas & Pari Patel, 2005. "Does internationalisation of technology determine technological diversification in large firms?," SPRU Working Paper Series 128, SPRU - Science Policy Research Unit, University of Sussex Business School.
    • Handle: RePEc:sru:ssewps:128
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    1. Walter Kuemmerle, 1999. "The Drivers of Foreign Direct Investment into Research and Development: An Empirical Investigation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(1), pages 1-24, March.
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    1. Quintás, Mari­a A. & Vázquez, Xosé H. & Garci­a, José M. & Caballero, Gloria, 2008. "Geographical amplitude in the international generation of technology: Present situation and business determinants," Research Policy, Elsevier, vol. 37(8), pages 1371-1381, September.
    2. Christian Le Bas & Parimal Patel, 2007. "Related variety and regional growth in Italy," SPRU Working Paper Series 164, SPRU - Science Policy Research Unit, University of Sussex Business School.
    3. Cozza, Claudio & Franco, Chiara & Perani, Giulio, 2018. "R&D endowments at home driving R&D internationalisation: Evidence from the Italian business R&D survey," Technological Forecasting and Social Change, Elsevier, vol. 134(C), pages 277-289.
    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. Carlsson, Bo, 2006. "Internationalization of innovation systems: A survey of the literature," Research Policy, Elsevier, vol. 35(1), pages 56-67, February.

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    Keywords

    multinational firms; technological diversification; internationalisation of technology; patenting;
    All these keywords.

    JEL classification:

    • 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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