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Foreign R&D satellites as a medium for the international diffusion of knowledge

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  • Joel Blit
Abstract
I examine the extent to which foreign R&D satellites of multinational firms act as a medium for the international diffusion of knowledge. Using patents from the United States Patent and Trademark Office, I compare the frequency with which headquarters patents are cited by third‐party firms in the satellite's host country relative to a control group of patents, and this both before and after the establishment of the satellite (using a difference‐in‐differences approach). The results suggest that the satellite increases the flow of knowledge from the multinational's headquarters to firms in the satellite's host country. This satellite effect on knowledge diffusion is largest in host countries and sectors with strong but not world‐class capabilities that have both the motivation and absorptive capacity to learn from foreign parties. The findings also suggest that knowledge diffusion is greatest when satellites are staffed with inventors that have previously either patented with other local firms (thus having stronger local social networks) or with the headquarters (thus having headquarters knowledge). Les installations satellites de R&D à l’étranger en tant que médium pour la diffusion internationale de la connaissance. On examine jusqu’à quel point les installations satellites de R&D des firmes plurinationales à l’étranger opèrent comme médium pour la diffusion internationale de la connaissance. À l’aide des brevets compilés par le United States Patent and Trademark Office, on compare la fréquence avec laquelle les brevets de la maison mère sont cités par des tierces entreprises dans le pays hôte du satellite par rapport à un groupe de contrôle de brevets – et ceci avant et après l’installation de l’entité satellite (à l’aide de l’approche en termes de différence des différences). Les résultats suggèrent que le satellite accroît les flux de connaissances de la maison mère de la plurinationale vers les entreprises dans le pays hôte du satellite. Cet effet de satellite sur la diffusion de la connaissance est le plus important dans les pays hôtes et les secteurs qui ont des capacités fortes (même si ce ne sont pas des capacités de classe mondiale) qui ont à la fois la motivation et la capacité d’absorption pour apprendre de l’étranger. Les résultats suggèrent aussi que la diffusion de la connaissance est la plus forte quand les satellites emploient des inventeurs qui ont anérieurement soit obtenu un brevet avec une autre firme locale (et qui ont donc un réseau social local fort) soit obtenu un brevet avec la maison mère (et donc ont une bonne connaissance du quartier général).

Suggested Citation

  • Joel Blit, 2018. "Foreign R&D satellites as a medium for the international diffusion of knowledge," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 51(4), pages 1118-1150, November.
    • Handle: RePEc:wly:canjec:v:51:y:2018:i:4:p:1118-1150
    DOI: 10.1111/caje.12359
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    Cited by:

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    2. Ángel Calvo, 2022. "Japanese ICT multinationals in Southern Europe by the end of the twentieth century: Fujitsu in Spain," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(2), pages 1341-1373, June.
    3. Liang, Yousha & Shi, Kang & Tao, Hanyi & Xu, Juanyi, 2024. "Learning by exporting: Evidence from patent citations in China," Journal of International Economics, Elsevier, vol. 150(C).
    4. Gong, Robin Kaiji, 2023. "The local technology spillovers of multinational firms," Journal of International Economics, Elsevier, vol. 144(C).
    5. Riccardo Crescenzi & Arnaud Dyèvre & Frank Neffke, 2020. "Innovation catalysts - How multinationals reshape the global geography of innovation," Papers in Evolutionary Economic Geography (PEEG) 2016, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2020.

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    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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