Importance of International Linkages for Local Know-How Flows - Some Econometric Evidence from Belgium

Universitat Pompeu Fabra Working Paper No. 434

Posted: 18 Apr 2000

See all articles by Reinhilde Veugelers

Reinhilde Veugelers

Catholic University of Leuven (KUL) - Department of Applied Economics; Centre for Economic Policy Research (CEPR)

Bruno Cassiman

IESE Business School; KU Leuven - Faculty of Business and Economics (FEB)

Abstract

External knowledge is an important input for the innovation process of firms. Increasingly, this knowledge is likely to originate from outside of their national borders. This explains the preoccupation of policymakers with stimulating local technology transfers coming from international firms. We find that firms that have access to the international technology market are more likely to transfer technology to the local economy. In doing so, we qualify the traditional assertion that multinational firms are more likely to transfer technology to the local economy. Once controlled for the superior access to the international technology market that multinationals enjoy, we find that these firms are not more likely to transfer technology to the local economy compared to exporting or local firms that have access to the international technology market. In summary, the main result of this paper is that it is not so much the international character of the firms, but rather their access to the international technology market that is important for generating external knowledge transfers to the local economy.

Keywords: International technology transfers, know-how flows, cooperation in R&D, host economy benefits.

JEL Classification: D23, F23, L22, O32

Suggested Citation

Veugelers, Reinhilde and Cassiman, Bruno, Importance of International Linkages for Local Know-How Flows - Some Econometric Evidence from Belgium. Universitat Pompeu Fabra Working Paper No. 434. Available at SSRN: https://ssrn.com/abstract=221528

Reinhilde Veugelers

Catholic University of Leuven (KUL) - Department of Applied Economics ( email )

Leuven, B-3000
Belgium
+32 16 32 6908 (Phone)
+32 16 32 6732 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Bruno Cassiman (Contact Author)

IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain
+34 93 602 4426 (Phone)
+34 93 253 4343 (Fax)

KU Leuven - Faculty of Business and Economics (FEB) ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

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