The purpose of this paper is two‐fold: to discuss the key factors determining foreign direct investment (FDI) intra‐industry spillovers and to examine the presence and the…
The purpose of this paper is two‐fold: to discuss the key factors determining foreign direct investment (FDI) intra‐industry spillovers and to examine the presence and the extent of these spillovers in Switzerland, by testing them for the services/construction industry, where there is currently a scarcity of evidence.
The assessment of spillovers calls for a detailed analysis of these effects according to the mechanisms by which they occur (namely, the increase in competition, demonstration effects, and worker mobility), and whether the size and the extent of spillovers depend on the interaction between their mechanisms and the existing technological capacities of domestic firms.
The regression results are affirmative, in that domestic firms with high technological capacities appear to gain spillover benefits from FDI heightening competition, while mid‐ and low‐technology firms benefit a lot from demonstration effects. In addition, spillovers for high‐ and mid‐technology firms appear to be largely co‐determined by the level of their human capital. Only domestic firms that invested heavily in absorptive capacity benefit from spillovers.
The evidence on spillover effects has not yet been conclusive. Hence, this paper proposes some components for a research agenda on FDI and intra‐industry spillovers.
The study provides insights for Swiss policy makers about how to promote the beneficial spillover effects of FDI.
The process of spilling over is correctly described in a more satisfactory model and then the impact of this process is accurately identified.
This study examines how foreign R&D investment may explain interfirm variations in productivity performance of home country firms in terms of spillovers. Many have studied…
This study examines how foreign R&D investment may explain interfirm variations in productivity performance of home country firms in terms of spillovers. Many have studied spillovers from MNCs to host country’s firms, but there is still scarce evidence on spillovers from outward FDI to the home country. This study analyzes spillovers from foreign R&D investment and hypothesizes that the benefit of outward R&D spillovers occurs only when knowledge accumulated in foreign R&D centers is effectively transferred to MNCs’ parent companies at home. This benefit depends on the mandate of foreign R&D units, their embeddedness in the host economy, and their entry mode. Using detailed firm-level data for Switzerland, our findings seem to support our arguments.
This volume is the outcome of the 33rd European International Business Academy (EIBA) conference held at the Faculty of Political Science of the University of Catania…
This volume is the outcome of the 33rd European International Business Academy (EIBA) conference held at the Faculty of Political Science of the University of Catania (Italy). This conference brought together more than 300 scholars from around the world to discuss theoretical and empirical issues in international business (IB), as well as their consequences and challenges to IB scholars and policy-makers. Organized around 10 thematic tracks, the conference is the annual forum for discussing major research issues in the IB realm. This volume is a collection of the best papers, which, selected through a blind refereeing process for presentation at the conference, make significant contributions by providing fresh new perspectives on a variety of relevant topics.