Identifying technology trasfer in foreign direct investment: Influence of industry conditions and investing firm motives

Firms have different motives for investing abroad, most notably to exercise existing capabilities, but also to build new capabilities by accessing knowledge located abroad. Recognizing this heterogeneity helps determine whether foreign investments transfer technology to their host industries. Using...

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Bibliographic Details
Published inJournal of international business studies Vol. 32; no. 2; p. 211
Main Author Chung, Wilbur
Format Journal Article
LanguageEnglish
Published Basingstoke Palgrave Macmillan 01.04.2001
Subjects
Competition
Foreign investment
Foreign investments in the US
Foreign subsidiaries
Incumbency
Inventors
Knowledge
Labor productivity
Laboratories
Manufacturing
R&D
Research & development
Research & development expenditures
Studies
Technology transfer
United States > US
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Summary:Firms have different motives for investing abroad, most notably to exercise existing capabilities, but also to build new capabilities by accessing knowledge located abroad. Recognizing this heterogeneity helps determine whether foreign investments transfer technology to their host industries. Using host industries' initial level of competition to differentiate when each of these dichotomous motives is more likely, this paper examines change in productivity resulting from inward FDI in US manufacturing industries for 1987 through 1991. It was found that relatively uncompetitive industries experience productivity growth while competitive industries experience productivity stagnation from FDI.
ISSN:0047-2506
1478-6990