In that case, exports of capital goods or components are not enough to compensate the substitution effects. Partial support for the paper was provided by the Commissariat G´en´eral du Plan of France under Contract No. Concerning third countries, our estimates fail to identify anything but a rather negligible positive impact. It appears likely that the intensity of this trade will be affected by the variations of n. The effectiveness of appropriation strategies can also be evaluated at the industry level. Then the foreign share began to creep up during the 1990s, reaching 37 per cent in 1997.
Hence, it has been impossible to extend our database and to integrate new data compiled with new principles. Innovative Strategies and Know-How Flows in International Companies: Some Evidence from Belgian Manufacturing 11. A local sales orientation makes it more likely that products are adapted and re-designed to suit local consumer demand, in the process of which the availability of local supply sources will be taken into account. The initial production effect in the upstream industry is increasing in relative local sourcing but decreasing in relative local supply. The Effectiveness of Intellectual Property Rights: an Exploration of French Survey Data 9.
Introduction Recent work on network ties suggests that the intensity of trade between nations may depend on linkages that have been established by managerial connections, immigration, or other types of trader exchange. We focus on the local procurement part of local content because our main interest in this paper are the effects of local supplier relationships and supplier networks within keiretsu on procurement behaviour. Since the pace and scope of technological and market change result in the increasing importance of external sources of technology, subsidiaries become important as vehicles to access local external sources. A comprehensive data source on Japanese electronics production abroad Denshi Keizai Kenkyujo 1993 was used to calculate plant counts. The move to overseas manufacturing employment took place mainly between 1957 and 1977, when about 300,000 foreign employees were added, almost tripling the number. Sjolander eds , Technology Management and International Business.
On the contrary, organizational factors related to the conditions of production of knowledge are conducive to partial ownership. Each regression has 396 observations. The survey also exhibits differences with previous, American-based studies. It focuses on the role of competitive advantage as a determinant of foreign investment. It would therefore be to such countries that production would be allocated for labor cost saving. European and Japanese multinationals Since the 1970s, European and Japanese economies have largely caught up with the American economy.
A study for an earlier period Lipsey et al. Standard errors are presented in parentheses. The paper is a joint effort by the authors. The foreign investment results in Tables 5. But at such a level of detail, results would be highly sensitive to the choice of the constant used in the transformation process. As a result, the best researchers and engineers may quit after an acquisition. Equation 6 is not reported in Tables 3.
As we discuss next, the international focus in buying and selling strategies contrasts with the more national focus observed in technological cooperation. As before, acquisitions stand alone. The effectiveness of technology transfer was found to be greater in case of lower-end production inputs. Also, for foreign subsidiaries, the international orientation is more pronounced. As far as possible, given the sample and surveys differences, we try to compare our results with those of Cohen et al. Many of the failures of development prescriptions stem from failing to account for idiosyncrasies across countries. If a multinational enters in industry B, then it may have a negative impact on the host economy if it draws labor from industry A.
We use the multiple correspondence approach to cope with multicollinearity. Interestingly enough, one can observe that, for Europe, protection without an economic interest in the market is very rare, less so for other foreign markets. It has been observed that a vast majority of patented innovations are still developed in the home country of big multinational corporations Patel 1997. One is adaptation to factor price differences by choosing different factor proportions along a single isoquant. Industry transaction costs 3a 0.
The respondents were asked to rate the importance to their innovation strategy of different information sources for the innovation process on a 5-point Likert scale from unimportant 1 to crucial 5. As a consequence, in the period under examination the percentage ratio of foreign to domestic employment increases from 5. The international orientation of external sourcing is less pronounced for the local companies, but most pronounced for the headquarters and subsidiaries of foreign companies. The internalization theory of the multinational has built up from transaction cost analysis in order to discuss the modes of organization of foreign operations. Multinational Firms and Impacts on Employment, Trade, and Technology. If local content is increased, on the other hand, through increased vertical integration of manufacturing operations by producing more components in-house , it may be associated with an upgrading of employee skills, in particular if the production of components is more technology and know-how intensive.
In order to account for both the strategic gap and the ownership advantage motivations, it proves extremely useful to adopt a quite different perspective. Mediterranean historical partners are in a very good relative position. I will also study whether the intensity of trade activity is affected by the mode of manufacturing foreign investment. In other cases, major changes in currency values induce investment abroad. There is only weak evidence for a wage or skill effect.
Thus, the average sample size is rather small, smaller indeed than the sample presented in Section 9. This complementarity is also sometimes underlined at a more aggregated level of analysis due to the spillover effects. This may be due to the fact that outward investment is reported within the industry of investment, not in the industry of destination. However, as many experts have argued, the imperfections of the patent system may stem not so much from the legislation itself as from how this legislation is enforced. Consequently, this partial derivative is always positive. Unfortunately, explaining these inter-industry differences has never been thoroughly undertaken.