Firm Networks and Global Technology Diffusion

Abstract

This paper examines the role of multinational firms and global value chain linkages in the cross-country diffusion of emerging technologies. Leveraging detailed data on online job postings across 17 countries and multinational firm linkages data from 2014 to 2022, we analyze how jobs related to emerging technologies propagate through firm networks. Our findings reveal that emerging technology jobs are highly concentratedwithin multinational firms and their supply chains, with nearly one-third of postings from Fortune 500 firms, their affiliates, buyers, suppliers, or innovation partners. Although locations where technologies originate initially dominate in related job openings, this advantage diminishes over time as technologies diffuse to wealthier and geographically closer countries and regions. This paper highlights the important role of firm-to-firm linkages in driving technology diffusion. Firms that were previously buyers or innovation partners of establishments in technology-originating locations experienced faster growth in jobs related to these technologies.

Keywords: technology diffusion, multinational firms, global value chains, firm-to-firm linkages, disruptive technologies.