Host-Country Technological and Scientific Collaborations of MNE Subsidiaries: Evidence from Operations in Europe

Abstract

It has been argued (Papanastassiou and Pearce, 1996a, b; Pearce and Papanastassiou, 1996a) that the increasingly strategic positioning of some multinational enterprise (MNE) subsidiaries not only involves the creative application of current group technology but also the development of local technological competencies that complement those that are acquired intragroup. These subsidiaries then seek to build on locally-developed competencies in individualized ways. This chapter aims to evaluate two types of linkages that MNE subsidiaries may establish in their host economies to achieve these objectives. These links may both facilitate the effective local implementation and productive use of extant group technology, and also seek to enrich these knowledge capacities in ways that particularly reflect local competencies and traditions. The investigated linkages are, firstly, the implementation of arrangements with local suppliers that involve technology transfers; and, secondly, the establishment of collaborative agreements with local scientific institutions for the creation of new knowledge or improvements in the effective local application of existing technology.KeywordsHost CountryScientific CollaborationLocal FirmLocal SupplierComponent SupplierThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.