Technological spillovers from multinational presence

Abstract

This article undertakes a critical review of existing spillover analyses and proposes a unique analytical framework for examining technological spillovers in a manufacturing industry setting. The proposed framework overlaps three different literature strands: cluster and network dynamics, technological innovations and spillover literature. It enables to determine the extent to which multinational presence in a host country stimulates spillover occurrence to local firms as well as their nature. Using this framework, the kinds of spillovers and the channels through which they occur most can be equally determined – this is particularly relevant for policy intervention in a technically backward country. Finally, it allows determination of factors and conditions under which spillovers from multinationals occur.