Openness and Technological Innovations in Developing Countries: Evidence from Firm-Level Surveys

59 Pages Posted: 17 Jul 2007

See all articles by Rita Almeida

Rita Almeida

World Bank; IZA Institute of Labor Economics

Ana M. Fernandes

World Bank - International Trade Division; World Bank

Multiple version iconThere are 2 versions of this paper

Date Written: July 2007

Abstract

This paper examines international technology transfers using firm-level data across 43 developing countries. Our findings show that exporting and importing activities are important channels for the transfer of technology. Majority foreign-owned firms are less likely to engage in technological innovations than minority foreign-owned firms or domestic firms. We interpret this finding as evidence that the technology transferred from multinational parents to majority-owned subsidiaries is more mature than that transferred to minority-owned subsidiaries. Our findings also suggest that foreign-owned subsidiaries rely mostly on the direct transfer of technology from their parents and that firms that import intermediate inputs are more likely to acquire new technology from their machinery suppliers.

Keywords: innovation, technology adoption, exports, imports, foreign ownership, firm level data

JEL Classification: F1, F2, O3

Suggested Citation

Almeida, Rita and Fernandes, Ana Margarida, Openness and Technological Innovations in Developing Countries: Evidence from Firm-Level Surveys (July 2007). IZA Discussion Paper No. 2907, Available at SSRN: https://ssrn.com/abstract=1000889 or http://dx.doi.org/10.2139/ssrn.1000889

Rita Almeida (Contact Author)

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
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IZA Institute of Labor Economics

P.O. Box 7240
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Germany

Ana Margarida Fernandes

World Bank - International Trade Division

1818 H Street, N.W.
Washington, DC 20433
United States

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/afernandes

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