Multinational enterprises, spillovers, innovation and productivity
In this article, the authors explore whether foreign-owned multinationals differ systematically from domestic firms in terms of R&D-investments, transmission of technology and economic performance. The analysis is based on a sample of 1197 firm-level observations in Sweden, of which one-third is from foreign-owned firms. The main finding is that domestic multinationals are distinct from other groups of corporate owners in terms of R&D and embeddedness in innovation systems. However, this advantage does not manifest itself in superior innovation or productivity performance. They suggest that domestic multinationals are using the home country for developing technological capacity that is subsequently exploited in affiliates abroad.