Competence-creating subsidiaries and FDI technology spillovers

TY - JOUR

T1 - Competence-creating subsidiaries and FDI technology spillovers

AU - Ha, Yoo Jung

AU - Giroud, Axele

PY - 2015/8

Y1 - 2015/8

N2 - Building on International Business research on subsidiary activities, this paper investigates the relationship between the type of innovation-intensive activities in an MNE subsidiary and FDI spillovers. Our results show that competence-creating activities by MNE subsidiaries generate significantly different horizontal and vertical spillovers compared with competence-exploiting activities. The findings suggest that FDI spillovers are influenced by the dynamic development of technological and strategic roles in a subsidiary in the dispersed innovation network of an MNE.

AB - Building on International Business research on subsidiary activities, this paper investigates the relationship between the type of innovation-intensive activities in an MNE subsidiary and FDI spillovers. Our results show that competence-creating activities by MNE subsidiaries generate significantly different horizontal and vertical spillovers compared with competence-exploiting activities. The findings suggest that FDI spillovers are influenced by the dynamic development of technological and strategic roles in a subsidiary in the dispersed innovation network of an MNE.

KW - FDI

KW - Technology spillovers

KW - Competence-creating subsidiaries

KW - MNEs

KW - South Korea

U2 - 10.1016/j.ibusrev.2014.11.001

DO - 10.1016/j.ibusrev.2014.11.001

M3 - Article

SN - 0969-5931

VL - 24

SP - 605

EP - 614

JO - International Business Review

JF - International Business Review

IS - 4

ER -