[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/hhs/lucirc/2019_009.html
   My bibliography  Save this paper

Cross-border knowledge flows through R&D FDI: Implications for low- and middle-income countries

Author

Listed:
  • Amendolagine, Vito

    (Università di Pavia)

  • Chaminade, Cristina

    (Lund University)

  • Guimón, José

    (Autonomous University of Madrid)

  • Rabellotti, Roberta

    (Università di Pavia)

Abstract
R&D related foreign direct investments represent a powerful mechanism for cross-border knowledge sharing that can stimulate the process of technological catch-up. However, low-income countries and smaller middle-income countries remain largely excluded from this kind of global flows of knowledge. In this chapter, we discuss the motivations and implications of this type of FDI for low and middle income countries, building on a critical review of the existing literature and analyse the trajectory of R&D FDI during the period 2003-2017 by region and industry. The data is used as a point of departure to discuss potential policies specially tailored for low and middle income countries and their capacity to attract and anchor R&D related FDI for technological catch up. The paper finalizes outlining a future research agenda.

Suggested Citation

  • Amendolagine, Vito & Chaminade, Cristina & Guimón, José & Rabellotti, Roberta, 2019. "Cross-border knowledge flows through R&D FDI: Implications for low- and middle-income countries," Papers in Innovation Studies 2019/9, Lund University, CIRCLE - Centre for Innovation Research.
    • Handle: RePEc:hhs:lucirc:2019_009
    as

    Download full text from publisher

    File URL: http://wp.circle.lu.se/upload/CIRCLE/workingpapers/201909_amendolagine.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Qu, Zhe & Huang, Can & Zhang, Mingqian & Zhao, Yanyun, 2013. "R&D offshoring, technology learning and R&D efforts of host country firms in emerging economies," Research Policy, Elsevier, vol. 42(2), pages 502-516.
    2. Amendolagine, Vito & Presbitero, Andrea F. & Rabellotti, Roberta & Sanfilippo, Marco, 2019. "Local sourcing in developing countries: The role of foreign direct investments and global value chains," World Development, Elsevier, vol. 113(C), pages 73-88.
    3. Lema, Rasmus & Quadros, Ruy & Schmitz, Hubert, 2015. "Reorganising global value chains and building innovation capabilities in Brazil and India," Research Policy, Elsevier, vol. 44(7), pages 1376-1386.
    4. John W. Medcof, 2007. "Subsidiary Technology Upgrading and International Technology Transfer, with Reference to China," Asia Pacific Business Review, Taylor & Francis Journals, vol. 13(3), pages 451-469, July.
    5. Dachs, Bernhard, 2017. "Internationalisation of R&D: A Review of Drivers, Impacts, and new Lines of Research," MPRA Paper 83367, University Library of Munich, Germany.
    6. Riccardo Crescenzi & Alexander Jaax, 2017. "Innovation in Russia: The Territorial Dimension," Economic Geography, Taylor & Francis Journals, vol. 93(1), pages 66-88, January.
    7. Rajneesh Narula & John Dunning, 2010. "Multinational Enterprises, Development and Globalization: Some Clarifications and a Research Agenda," Oxford Development Studies, Taylor & Francis Journals, vol. 38(3), pages 263-287.
    8. Pietrobelli, Carlo & Rabellotti, Roberta, 2011. "Global Value Chains Meet Innovation Systems: Are There Learning Opportunities for Developing Countries?," World Development, Elsevier, vol. 39(7), pages 1261-1269, July.
    9. Reddy, Prasada, 1997. "New trends in globalization of corporate R&D and implications for innovation capability in host countries: A survey from India," World Development, Elsevier, vol. 25(11), pages 1821-1837, November.
    10. Yun-Chung Chen, 2008. "Why Do Multinational Corporations Locate Their Advanced R&D Centres in Beijing?," Journal of Development Studies, Taylor & Francis Journals, vol. 44(5), pages 622-644.
    11. Guimón, José & Chaminade, Cristina & Maggi, Claudio & Salazar-Elena, Juan Carlos, 2018. "Policies to Attract R&D-related FDI in Small Emerging Countries: Aligning Incentives With Local Linkages and Absorptive Capacities in Chile," Journal of International Management, Elsevier, vol. 24(2), pages 165-178.
    12. R. Shearmur & Christophe Carrincazeaux & D. Doloreux, 2016. "Handbook on the Geographies of Innovation," Post-Print hal-03152373, HAL.
    13. Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(2), pages 385-406, June.
    14. Rene Belderbos & Leo Sleuwaegen & Dieter Somers & Koen De Backer, 2016. "Where to Locate Innovative Activities in Global Value Chains. Does Co-location Matter?," Working Papers of Department of Management, Strategy and Innovation, Leuven 552861, KU Leuven, Faculty of Economics and Business (FEB), Department of Management, Strategy and Innovation, Leuven.
    15. Rasmus Lema & Roberta Rabellotti & Padmashree Gehl Sampath, 2018. "Innovation Trajectories in Developing Countries: Co-evolution of Global Value Chains and Innovation Systems," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 345-363, July.
    16. Gautam Ahuja & Riitta Katila, 2001. "Technological acquisitions and the innovation performance of acquiring firms: a longitudinal study," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 197-220, March.
    17. Beata Smarzynska Javorcik, 2004. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages," American Economic Review, American Economic Association, vol. 94(3), pages 605-627, June.
    18. Lorena M. D’Agostino & Grazia D. Santangelo, 2012. "Do Overseas R&D Laboratories in Emerging Markets Contribute to Home Knowledge Creation?," Management International Review, Springer, vol. 52(2), pages 251-273, April.
    19. Ram Mudambi & Rajneesh Narula & Grazia D. Santangelo, 2018. "Location, collocation and innovation by multinational enterprises: a research agenda," Industry and Innovation, Taylor & Francis Journals, vol. 25(3), pages 229-241, March.
    20. Benno Buehler & Daniel Coublucq & Cyril Hariton & Gregor Langus & Tommaso Valletti, 2017. "Recent Developments at DG Competition: 2016/2017," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 51(4), pages 397-422, December.
    21. John Cantwell, 2017. "Innovation and international business," Industry and Innovation, Taylor & Francis Journals, vol. 24(1), pages 41-60, January.
    22. Richard Shearmu & Christophe Carrincazeaux & David Doloreux (ed.), 2016. "Handbook on the Geographies of Innovation," Books, Edward Elgar Publishing, number 16055.
    23. Jos� Guim�n & Juan Carlos Salazar-Elena, 2015. "Collaboration in Innovation Between Foreign Subsidiaries and Local Universities: Evidence from Spain," Industry and Innovation, Taylor & Francis Journals, vol. 22(6), pages 445-466, August.
    24. Robert Pearce & Marina Papanastassiou, 2009. "Multinationals and National Systems of Innovation: Strategy and Policy Issues," Palgrave Macmillan Books, in: The Strategic Development of Multinationals, chapter 8, pages 138-162, Palgrave Macmillan.
    25. Kafouros, Mario I. & Buckley, Peter J. & Clegg, Jeremy, 2012. "The effects of global knowledge reservoirs on the productivity of multinational enterprises: The role of international depth and breadth," Research Policy, Elsevier, vol. 41(5), pages 848-861.
    26. Robert Pearce & Marina Papanastassiou, 2009. "Subsidiaries, Innovation and the Strategic Development of Multinationals," Palgrave Macmillan Books, in: The Strategic Development of Multinationals, chapter 1, pages 1-20, Palgrave Macmillan.
    27. Anthony Goerzen & Christian Geisler Asmussen & Bo Bernhard Nielsen, 2013. "Global cities and multinational enterprise location strategy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 44(5), pages 427-450, June.
    28. Riccardo Crescenzi & Andrés Rodríguez‐Pose, 2017. "The Geography of Innovation in China and India," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 41(6), pages 1010-1027, November.
    29. Vito Amendolagine & Elisa Giuliani & Arianna Martinelli & Roberta Rabellotti, 2018. "Chinese and Indian MNEs’ shopping spree in advanced countries. How good is it for their innovative output?," Journal of Economic Geography, Oxford University Press, vol. 18(5), pages 1149-1176.
    30. Cristina Chaminade & Claudia De Fuentes & Gouya Harirchi & Monica Plechero, 2016. "The geography and structure of global innovation networks: global scope and regional embeddedness," Chapters, in: Richard Shearmu & Christophe Carrincazeaux & David Doloreux (ed.), Handbook on the Geographies of Innovation, chapter 22, pages 370-381, Edward Elgar Publishing.
    31. Marina Papanastassiou & Robert Pearce, 2009. "The Strategic Development of Multinationals," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-25048-2, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ernest Miguelez & Julio Raffo & Christian Chacua & Massimiliano Coda-Zabetta & Deyun Yin & Francesco Lissoni & Gianluca Tarasconi, 2019. "Tied In: The Global Network of Local Innovation," WIPO Economic Research Working Papers 58, World Intellectual Property Organization - Economics and Statistics Division.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marina Papanastassiou & Robert Pearce & Antonello Zanfei, 2020. "Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: A review of the literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 623-664, June.
    2. Andrea Coveri & Antonello Zanfei, 2023. "Who wins the race for knowledge-based competitiveness? Comparing European and North American FDI patterns," The Journal of Technology Transfer, Springer, vol. 48(1), pages 292-330, February.
    3. Figueiredo, Paulo N. & Larsen, Henrik & Hansen, Ulrich E., 2020. "The role of interactive learning in innovation capability building in multinational subsidiaries: A micro-level study of biotechnology in Brazil," Research Policy, Elsevier, vol. 49(6).
    4. Guimón, José & Chaminade, Cristina & Maggi, Claudio & Salazar-Elena, Juan Carlos, 2018. "Policies to Attract R&D-related FDI in Small Emerging Countries: Aligning Incentives With Local Linkages and Absorptive Capacities in Chile," Journal of International Management, Elsevier, vol. 24(2), pages 165-178.
    5. Delera, Michele & Pietrobelli, Carlo & Calza, Elisa & Lavopa, Alejandro, 2022. "Does value chain participation facilitate the adoption of Industry 4.0 technologies in developing countries?," World Development, Elsevier, vol. 152(C).
    6. Lema, Rasmus & Quadros, Ruy & Schmitz, Hubert, 2015. "Reorganising global value chains and building innovation capabilities in Brazil and India," Research Policy, Elsevier, vol. 44(7), pages 1376-1386.
    7. Dachs, Bernhard, 2017. "Internationalisation of R&D: A Review of Drivers, Impacts, and new Lines of Research," MPRA Paper 83367, University Library of Munich, Germany.
    8. Ron Boschma, 2021. "Global Value Chains from an Evolutionary Economic Geography perspective: a research agenda," Papers in Evolutionary Economic Geography (PEEG) 2134, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2021.
    9. Christine Côté & Saul Estrin & Daniel Shapiro, 0. "Expanding the international trade and investment policy agenda: The role of cities and services," Journal of International Business Policy, Palgrave Macmillan, vol. 0, pages 1-25.
    10. Elia, Stefano & Kafouros, Mario & Buckley, Peter J., 2020. "The role of internationalization in enhancing the innovation performance of Chinese EMNEs: A geographic relational approach," Journal of International Management, Elsevier, vol. 26(4).
    11. Cote, Christine & Estrin, Saul & Shapiro, Daniel, 2020. "Expanding the international trade and investment policy agenda: the role of cities and services," LSE Research Online Documents on Economics 104003, London School of Economics and Political Science, LSE Library.
    12. Christine Côté & Saul Estrin & Daniel Shapiro, 2020. "Expanding the international trade and investment policy agenda: The role of cities and services," Journal of International Business Policy, Palgrave Macmillan, vol. 3(3), pages 199-223, September.
    13. Yoshimichi Murakami & Keijiro Otsuka, 2020. "Governance, Information Spillovers, and Productivity of Local Firms: Toward an Integrated Approach to Foreign Direct Investment and Global Value Chains," The Developing Economies, Institute of Developing Economies, vol. 58(2), pages 134-174, June.
    14. Ketan Reddy & Radeef Chundakkadan & Subash Sasidharan, 2021. "Firm innovation and global value chain participation," Small Business Economics, Springer, vol. 57(4), pages 1995-2015, December.
    15. Jacob, Jojo & Sasso, Simone, 2015. "Foreign direct investment and technology spillovers in low and middle-income countries: A comparative cross-sectoral analysis," MERIT Working Papers 2015-035, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    16. Benoit, Florence & Belderbos, René, 2024. "International connection, local disconnection: The (heterogeneous) role of global cities in local and global innovation networks," Journal of International Management, Elsevier, vol. 30(3).
    17. Ge, Shuang & Liu, Xielin, 2022. "The role of knowledge creation, absorption and acquisition in determining national competitive advantage," Technovation, Elsevier, vol. 112(C).
    18. Lema, Rasmus & Pietrobelli, Carlo & Rabellotti, Roberta & Vezzani, Antonio, 2021. "Deepening or delinking? Innovative capacity and global value chain participation in the ICT sectors," MERIT Working Papers 2021-007, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    19. Eunkwang Seo & Hyo Kang & Jaeyong Song, 2020. "Blending talents for innovation: Team composition for cross-border R&D collaboration within multinational corporations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(5), pages 851-885, July.
    20. Akçomak, Ibrahim Semih & Bürken, Serkan, 2019. "The middle-technology trap: The case of the automotive industry in Turkey," MERIT Working Papers 2019-006, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

    More about this item

    Keywords

    Foreign Direct Investment; Technology driven FDI; International technology transfer; South-South FDI; Developing countries; Less developed countries; Emerging Economies; Innovation policy;
    All these keywords.

    JEL classification:

    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:lucirc:2019_009. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Torben Schubert (email available below). General contact details of provider: https://edirc.repec.org/data/circlse.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.