Multinational Firms, Innovation and Productivity

This book develops a view of multinational firms as heterogeneous institutions that combine internal networks of subsidiaries with external networks of collaborative linkages, through which they bridge different economic and innovation systems. From this perspective, the volume examines heterogeneity in productivity and innovative behaviour between multinational and national firms, as well as across and within multinationals. A major implication is that not every multinational firm is a good source of externality, and not every domestic firm is equally well placed to benefit from the presence of multinationals. It is shown that spillovers from multinational firms differ according to the technological profiles, embeddedness and linkage creation of both foreign and domestic firms active in local markets. To support this view, the book provides empirical evidence based on illustrative case studies, and on econometric analysis using extensive firm-level datasets on multinational activities, innovation and economic performances.