Host Country Competition and Technology Transfer by Multinationals

29 Pages Posted: 15 Jan 2007

See all articles by Magnus Blomstrom

Magnus Blomstrom

Stockholm School of Economics - Department of Economics; National Bureau of Economic Research (NBER), at New York; Centre for Economic Policy Research (CEPR)

Ari Kokko

Stockholm School of Economics; National Bureau of Economic Research (NBER)

Mario Zejan

SIDA

Date Written: August 1992

Abstract

This paper examines whether rivalry in host country markets may force multinational films to increase the technology transfer to their foreign affiliates. Such technology flows should be interesting from the perspective of the host country and its firms, since they would increase the potential for "spillovers". Using detailed (unpublished) industry data from Mexican manufacturing industry we find that indicators for local competition are positively related to the technology imports of foreign owned affiliates. The effects appear to be strong in consumer goods industries, which suggest that foreign multinationals are especially sensitive to the local market environment when barriers to entry in the form of complex technology or high capital requirements are relatively low.

Suggested Citation

Blomstrom, Magnus and Kokko, Ari and Zejan, Mario, Host Country Competition and Technology Transfer by Multinationals (August 1992). NBER Working Paper No. w4131. Available at SSRN: https://ssrn.com/abstract=476200

Magnus Blomstrom (Contact Author)

Stockholm School of Economics - Department of Economics ( email )

P.O. Box 6501
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National Bureau of Economic Research (NBER), at New York

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Centre for Economic Policy Research (CEPR)

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Ari Kokko

Stockholm School of Economics ( email )

P.O. Box 6501
Stockholm
Sweden
+46 8 736 9365 (Phone)

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
United States

Mario Zejan

SIDA ( email )

105 25 Stockholm
Sweden
+46-8-698 50 00 (Phone)
+46-8-20 88 64 (Fax)

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