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Multinational Companies, Knowledge and Technology Transfer: Theoretical Framework

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Multinational Companies, Knowledge and Technology Transfer

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

Abstract

In this chapter, we review mainly the theoretical and empirical literature on FDI with an emphasis on the technology spillovers and transfer realized by multinationals. In the first section, definitions of the basic concepts used in the study are explained briefly. Next, in the second and third sections, technology diffusion through FDI, growth and the relationship between spillovers and multinationals are presented. Then, the fourth section is devoted to the analysis of main spillover channels identified in the literature. We then examine the determinants of the spillovers in the section five. Theoretical and empirical evidence on the technology spillovers and their effects on the host economies are presented in the sixth section. Review of the related literature on spillovers for Turkey constitutes an important part of the study. The last section summarizes the theoretical framework for the case-study research on both intra- and inter-firm technology transfers in Turkish automotive industry, and reviews the literature on similar case-studies conducted on both foreign countries and Turkey.

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Notes

  1. 1.

    For instance, Haddad and Harrison (1993) for Morocco; Aitken and Harrison (1999) for Venezuela, Konings (2001) for Bulgaria and Romania, Djankov and Hoekman (2000) for Czech Republic have found negative evidences.

  2. 2.

    See Kepenek and Yentürk (2003), Önis (1994), Erdilek (1986; 2003), Akpınar (2001), Alıcı and Ucal (2003), Yılmaz (2006), Yılmaz and Barbaros (2005), Taymaz and Yılmaz (2007), Pamukçu and Taymaz (2009) for detailed information on FDI flows in Turkey in terms of historical background, obstacles, structure, discussions and various statistical data.

  3. 3.

    See Lenger (2004) on the discussion of MNCs and for further details.

  4. 4.

    These incentives are usually in the form of special tax concessions, lower income taxes, exemptions from import duties, extension of tax holidays, subsidies for infrastructure and direct subsidies.

  5. 5.

    The term was firstly used by the economist John Williamson in 1989. It refers to ten recommendations of three institutions (the World Bank, the IMF and the US Treasury department) for developing countries based on neo-classical economic theory to establish a more market oriented economy.

  6. 6.

    We will use the terms “productivity spillovers” and “technology spillovers” interchangeably throughout the study to refer to the same concept.

  7. 7.

    Such as trademarks, technology, knowledge, organizational, marketing and managing skills, export experiences and contacts worldwide, production methods and marketing advantages, coordinated strategic relationships with suppliers and/or customers, distribution networks established worldwide, and reputation.

  8. 8.

    See, Görg and Strobl (2001, 2003) for details.

  9. 9.

    These could be in the form of natural or human resource-seeking.

  10. 10.

    Especially they invest in host countries where import substitution policies have restricted import from the foreign markets in developed countries.

  11. 11.

    See Blomström and Kokko (1998), Görg and Greenaway (2001; 2004), Saggi (2002), Haskel et al. (2002), Crespo and Fontoura (2007) for detailed literature review and theoretical discussions on technology spillovers.

  12. 12.

    For theoretical studies, see Findlay (1978), Das (1987), Wang (1990), Wang and Blomström (1992). For some early empirical studies, see Dunning (1958), Safarian (1966), and Gabriel (1967).

  13. 13.

    See Görg and Strobl (2001) and Blomström and Kokko (1998) for the details on this literature.

  14. 14.

    These studies are generally employed by using interviews and mailing questionnaires. For instance, see Hobday (1995) and Kim (1997).

  15. 15.

    He uses the 1993 data for the entire analysis; however, the data of the year 1988 is used for creating some independent variables due to lack of data.

  16. 16.

    Various proxies are used in these models for foreign presence such as the share of foreign firms in total employment, total sales, total value added, and total net assets of an industry (Aslanoğlu, 2000, p. 1122).

  17. 17.

    For details, see Olley and Pakes (1996).

  18. 18.

    For details, see Levinsohn and Petrin (2003).

  19. 19.

    The study followed the same method as us in collecting qualitative data and it constituted the basis for us to formulate our questions on innovation and R&D.

  20. 20.

    See Pamukçu (2003), Bertinelli et al. (2006), Lenger and Taymaz (2006), Wasti et al. (2006, 2009), Aksoy (2008), Pamukçu and Taymaz (2009), Dayar and Pamukçu (2011).

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    Alper Sönmez

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Sönmez, A. (2013). Multinational Companies, Knowledge and Technology Transfer: Theoretical Framework. In: Multinational Companies, Knowledge and Technology Transfer. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-319-02033-4_2

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