Associate Professor of Strategy
JOURNAL ARTICLE | Journal of International Business Studies | 38 | September 2007
Asymmetry of Knowledge Spillovers between MNCs and Host Country Firms
The author uses patent citation data to examine knowledge flows between foreign MNCs and host country organizations in 30 countries. The author finds not just significant knowledge inflows from foreign MNCs to host country organizations, but also significant outflows back from the host country to foreign MNCs.In fact, in technologically advanced countries, knowledge outflows to foreign MNCs greatly outweigh knowledge inflows. Even in technologically less advanced countries, knowledge outflows are only slightly weaker than inflows. Additional analysis shows that the exact pattern varies across sectors within a country, depending on the country's expertise in individual sectors.Finally, knowledge inflows and outflows appear to track personnel flows between foreign MNCs and host country organizations.