Multinational Firms, Innovation and Productivity

Regional Innovation and Spillover Effects of Foreign Direct Investment in China: A Threshold Approach

“…Kokko and Kravtsova (2006) also argue that, to benefit from spillovers, sufficient innovative capability is required by local firms to adopt the technologies introduced through FDI (Kokko, 1994;Kinoshita, 2001;Girma 2003). In commenting on the relationship between the two hypotheses, Castellani and Zanfei (2006) argue that technology gap and absorptive capability are two different concepts in the context of heterogeneous firms. While the technology gap indicates the average distance between foreign and domestic firms in a given sector, absorptive capacity may differ between firms in the same sector.…”

Dimensions of Proximity and Knowledge Bases: Innovation between Spatial and Non-spatial Factors

“…the capability to effectively use social networks to access additional expertise, are largely dependent on these tacit elements (LUNDVALL and JOHNSON, 1994). Explicit knowledge, on the other hand, can easily be codified and then transferred with the use of written documents, which allows it to transcend greater distances (CASTELLANI and ZANFEI, 2006). This codified knowledge includes knowwhat, i.e.…”

Incorporating innovation subsidies in the CDM framework: empirical evidence from Belgium

“…Group members with foreign headquarters should be considered independently of national groups due to their presence on foreign territory, therefore a dummy FOREIGN is included (for a discussion on multinationals and innovation see e.g. Castellani and Zanfei, 2006). In addition, the dummy EXPORT, reflecting whether a firm is exporting, is included in order to capture international presence, which might be positively related to innovation activities of any kind as exporters are exposed to more intense competition than other firms.…”