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

Journal of Development Studies, Vol. 44, Issue 5, 2008

Posted: 24 Apr 2009

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

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Abstract

This paper examines international technology transfers using firm-level data across 43 developing countries. Its 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. The authors 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. Their 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. Journal of Development Studies, Vol. 44, Issue 5, 2008, Available at SSRN: https://ssrn.com/abstract=1368236

Rita Almeida

World Bank ( email )

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

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Ana Margarida Fernandes (Contact Author)

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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