Knowledge diffusion, input supplier's technological effort and technology transfer via vertical relationships

Goh, Ai‐Ting

doi:10.1016/j.jinteco.2004.06.010

Cited by 32 publications

(31 citation statements)

References 14 publications

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“…On the one hand, importers may access new, better quality and more suitable inputs (Krishnan and Ulrich, 2001;Goldberg et al, 2009;Colantone and Crino`, 2014). On the other hand, exporters may dramatically be pushed to innovate by their own foreign customers (Egan and Mody, 1992;Goh, 2005;Salomon and Shaver, 2005;Baldwin and von Hippel, 2011;Hahn and Park, 2011;Bratti and Felice, 2012;Lo Turco and Maggioni, 2015). Foreign-owned firms, then, besides being more export and import intensive, may further benefit from technological spillovers from their headquarters and from the availability of intra-group financial resources (Desai et al, 2004(Desai et al, , 2008.…”

Section: Baseline Resultsmentioning

confidence: 99%

On firms’ product space evolution: the role of firm and local product relatedness

Turco

Maggioni

2015

J Econ Geogr

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We explore the role of firm-and local product-specific capabilities in fostering the introduction of new products in the Turkish manufacturing. Firms' product space evolution is characterised by strong cognitive path dependence that, however, is relaxed by firm heterogeneity in terms of size, efficiency and international exposure. The introduction of new products in laggard Eastern regions, which is importantly linked to the evolution of their industrial output, is mainly affected by firm's internal productspecific resources. On the contrary, product innovations in Western advanced regions hinge relatively more on the availability of local technological-related competencies.

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Section: Baseline Resultsmentioning

confidence: 99%

On firms’ product space evolution: the role of firm and local product relatedness

Turco

Maggioni

2015

J Econ Geogr

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“…They focus on how spillovers that generate threat of both upstream and downstream entry affect profits. Building on their model, Goh (2005) endogenizes the vertical technology transfer decision and studies how spillovers affect the incentives to transfer knowledge to a supplier.…”

Section: Introductionmentioning

confidence: 99%

Multinationals' Mode of Entry in the Presence of Upstream Spillovers

Balsvik

2010

Economica

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Multinationals' mode of foreign expansion may depend on their expectations of spillovers. I consider a monopolist with a vertical production structure where outsourcing of intermediates to a host country firm is one of three possible entry modes. Spillovers generate threat of entry of a new input producer. With incomplete outsourcing contracts that result in the two firms bargaining over how to share the potential surplus, upstream spillovers do not necessarily benefit the downstream multinational. If the multinational instead allows the supplier to set the price of intermediates (successive monopoly), it clearly benefits from upstream spillovers. Copyright (c) The London School of Economics and Political Science 2009.

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“…This literature, similarly to our paper, focuses on secret contracting through non‐linear contracts and demonstrates, among other things, the inability of an upstream firm to fully exert its market power—its commitment problem. In contrast, the existing literature on FDI in vertically related markets either assumes that the upstream firms compete à la Cournot (Goh , Lin and Saggi ), and thus, does not model explicitly the contracting process, or assumes that vertical trading occurs through linear wholesale price contracts (Pack and Saggi , Balsvik , Beladi et al. , Milliou 2013) .…”

Section: Introductionmentioning

confidence: 99%

Foreign direct investment in vertically related markets

Milliou¹,

Pavlou

2020

Canadian J of Economics

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We study an MNE's choice of FDI mode in a vertically related market with local input sourcing. We show how the market's vertical structure and trading features affect this choice. An MNE's incentives to expand through cross‐border acquisition rather than through greenfield investment are stronger in markets with higher upstream bargaining power, upstream concentration and unobservable contract terms. The opposite holds in markets in which wholesale price contracts, instead of two‐part tariffs, are used. Our welfare analysis suggests that the host country should not always welcome FDI and should discourage FDI through acquisition.

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Knowledge diffusion, input supplier's technological effort and technology transfer via vertical relationships

Cited by 32 publications

References 14 publications

On firms’ product space evolution: the role of firm and local product relatedness

On firms’ product space evolution: the role of firm and local product relatedness

Multinationals' Mode of Entry in the Presence of Upstream Spillovers

Foreign direct investment in vertically related markets

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