Multinational firms, innovation and productivity

Davide Castellani, University of Perugia
Antonello Zanfei, University of Urbino

Abstract

This book gets to the root of how and why multinational firms differ in the cross-border creation, transfer and diffusion of technology, and provides fresh

evidence on the effects that these differences have on productivity and innovation in the economic systems in which they are active.

Multinationals are considered as heterogeneous institutions that combine internal networks of subsidiaries with external

networks of collaborative linkages, to bridge different economic and innovation systems. The book examines heterogeneity in productivity and innovative

behaviour between multinational and national firms, as well as across and within multinationals. The authors argue that not every foreign firm is a good

source of externality, and not every domestic firm is equally well placed to benefit from multinationals. It is shown that spillovers from multinationals differ

according to the technological profiles, embeddedness and linkage creation of both foreign and domestic firms active in local markets. The book supports

this view with empirical evidence based on illustrative case studies, and on econometric analysis using extensive firm-level datasets on multinational

activities, innovation and economic performances.

WHAT HAS BEEN SAID ON THIS BOOK:

‘Castellani and Zanfei have developed an original and comprehensive analysis of the role of multinational firms in the transfer, creation and diffusion of

technology. By developing their view of the multinationals as “double network institutions”, the authors provide new insights on a variety of key issues at the

frontier of economics of international production and innovation. This book is thought-provoking, incisive and topical, and should be required reading for both

economists and policymakers alike.’

Rajneesh Narula, University of Reading

‘The book assumes an original place in the literature. . . Castellani and Zanfei show that the economic impact of MNEs on

innovation and productivity depends on evolutionary features of firms and industries, particularly on the heterogeneity of

firm strategies and behaviours. . . this volume contains high-quality, well-written research. . .’

Simona Iammarino, Science Policy Research Unit, University of Sussex

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