Alessandra Perri

Knowledge Spillovers from FDI: A Critical Review from the International Business Perspective

This paper reviews and organizes the theoretical and empirical research on foreign direct investment (FDI) knowledge spillovers from the international business perspective. In doing so, it develops a framework for the analysis of this phenomenon. The suggested FDI knowledge spillover framework integrates both the macro‐level (country, industry, institutions) and micro‐level (multinational firm, headquarters, subsidiary, local firms) antecedents of spillovers with their consequences, and proposes to analyse spillovers along three main attributes that characterize their occurrence, i.e. their magnitude, scope and speed.

A longitudinal study of MNE innovation: the case of Goodyear

Purpose – The purpose of this article is to provide insights into the innovation trajectory, and knowledge pipelines of mature industry multinational enterprises (MNEs). The ability to innovate constantly amidst a turbulent and competitive environment is often the key force behind MNE survival and dominance. Design/methodology/approach – This study conducts an in-depth longitudinal study of the Goodyear Tire and Rubber Company, a global manufacturing company in the tire and rubber industry. The findings are based on USPTO patent and trademark data from 1975-2005. Findings – The analysis reveals three crucial trends: the major role of continuous investment in innovation in the firm’s survival and turnaround; the evolution of the firm’s innovation network from a headquarters-centric model toward more geographical dispersal; and the changing mix of innovation from traditional “hard” science-based research toward a greater emphasis on “softer” competencies in design and trademarks. This third trend, in partic...

Innovation and the multinational firm: perspectives on foreign subsidiaries and host locations

Introduction PART I: MANAGING INNOVATION ACROSS GEOGRAPHICAL SPACE: AN OVERVIEW 1. Innovation in Multinational Firms and the Role of Geography 1.1 Innovation and the Multinational Firm 1.2 Models and Processes of Innovation in Multinational Firms 1.3 R&D Internationalization and the Role of Geography 1.3.1 Tacit Knowledge, Proximity and Co-location 1.4 Is R&D Really International? 2. Managing Innovation in Multinational Firms 2.1 Forces behind R&D Internationalization 2.2 Types of Innovation-Driven Foreign Direct Investment 2.3 Location Choices of R&D Facilities 2.4 Organizational Challenges in Multinational Innovation 2.4.1 Orchestrating Geographically Dispersed Innovation Activities PART II: A MULTI-LEVEL APPROACH TO THE STUDY OF GEOGRAPHICALLY DISPERSED INNOVATION IN MULTINATIONAL FIRMS 3. Perspectives on Subsidiaries 3.1 The Evolution of Subsidiary-Level Research 3.2 Changing Roles: from Passive to Active Subsidiaries 3.3 Internal and External Drivers of Subsidiary Evolution 3.3.1 The Influence of the Internal Network 3.3.2 The Influence of the External Network 3.4 An Innovation Management Perspective 3.4.1 Knowledge Creation 3.4.2 Knowledge Protection 4. Perspectives on Host-Locations 4.1 Integrating International Business, Innovation and Economic Geography perspectives 4.2 The case of FDI Spillovers to Host-locations 4.3 Antecedents of FDI Knowledge Spillovers 4.4 Place and Space: Locational Features for MNC Innovation 5. Integrating Perspectives 5.1 The Relevance of Locations for MNC Innovation 5.2 The Case of FDI Spillovers to Host-locations 5.3 Antecedents of FDI Knowledge Spillovers 5.3.1 Macro-level Perspectives 5.3.2 Meso-level Perspectives 5.3.3 Micro-level Perspectives 5.4 Implications for the Study of FDI Spillovers to Host-locations 6. Concluding Remarks and New Research Directions 6.1 Concluding Observations 6.2 Potential Research Opportunities

Managing Innovation in Emerging Economies: Organizational Arrangements and Resources of Foreign MNEs in the Chinese Pharmaceutical Industry

Abstract To investigate the impact of knowledge-intensive FDI in the Chinese pharmaceutical industry, this study analyzes the activity of foreign MNEs operating in this context by exploring their innovative background, the organizational arrangements they use for local knowledge creation and the performance of their local innovative processes. Based on the analysis of the universe of USPTO pharmaceutical patents applied for between 1975 and 2010 and granted to foreign assignees utilizing the work of Chinese inventors, our results show that, while the presence of foreign MNEs in the Chinese pharmaceutical industry entails a strong potential for positive externalities that could enhance the performance of the local innovation system, such externalities do not completely materialize yet, likely because of local actors’ limited absorptive capacity.

La creazione di valore nelle strategie di disinvestimento: evidenze dal contesto europeo

Purpose of the paper : In this work, we analyze the role of pre-divestiture performance on the divestiture’s value creation in the context of European countries. Specifically, we explore the existence of potential interaction effects between pre-divestiture performance and the presence of blockholder and the degree of relatedness between the divesting firm core business and the divested business unit. Methodology : Econometric analysis on a unique dataset of 147 divestitures across thirteen countries is used to test the hypotheses. Findings : The pre-divestiture performance of the parent firm moderates the impact of both the blockholder and the relatedness on the parent’s post divestiture performance. Our findings indicate that when prior performance is higher, the impact of the presence of a blockhdolder on parent performance is less positive, while the impact of unrelatedness between the divesting firm’s core business and the divested business unit is less negative. Research limits: While our empirical analysis controls for the two most common modes of divestiture - spinoffs and sell-offs, we were not able to focus on homogeneous samples of divestiture deal types. Future work might more systematically test for differences across these modes, for instance through separate samples. Practical Implication : From a managerial point of view, executives need to be aware that divestiture strategies do not only represent tools to remedy to wrong managerial decisions, but rather can also be used to pursue the firm’s growth. Moreover, they should consider that ownership structure and relatdness may affect the performance of the divestiture deal in ways that are dependent on the pre-divestiture performance. This may lead managers to modify the timing and overall design of their divestiture strategies. Originality of the paper : Our study contributes to the divestiture literature by addressing the research gap on the determinants of the parent performance in European countries through a focus on pre-divestiture performance.

Exploring the international connectivity of Chinese inventors in the pharmaceutical industry

This paper explores the integration of emerging countries into the global system of innovation, as a channel for their technological catch-up. Using data on the innovative activity in the Chinese pharmaceutical industry, we analyze the geographic dispersion of inventor networks linked to China, as a function of the characteristics of the innovative actors that coordinate their inventive work.

Knowledge breadth of MNC subsidiaries and the duration of host-country firms' search

The aim of this paper is to investigate the factors influencing the speed at which knowledge flows from foreign to domestic firms. The focus is not on whether a knowledge spillover occurs, but on the time it takes to spread the MNC subsidiary knowledge in the local area. Filling the gap about spillover speed in International Business by means of the insights from Innovation Studies Ðspecifically, the literature on search and NK modelling-, we propose a conceptual model where the speed of local knowledge diffusion is influenced by subsidiariesO technology sourcing strategies. We then test our model using a database covering 1336 US patents from the semiconductors sector. We find that not only the breadth of the set of subsidiariesO knowledge sources slows down local knowledge diffusion, but that the delay is mainly related to the diversity of global and internal sources used by the subsidiary, hinting at strategies that MNCs can use to further protect their knowledge.

Concluding Remarks and Avenues for Future Research

This chapter summarizes the most relevant findings of this volume and discusses the main contributions for both family business and innovation research streams. It proposes an integrative framework that accounts for the multifaceted relationship linking family firms and innovation output. The main limitations of this book are also discussed to open up a research agenda and stimulate future research into this promising area of inquiry.

Family Firm Innovation in the Global Pharmaceutical Industry

This chapter describes the global pharmaceutical industry, focusing on its most important characteristics and competitive dynamics. Several features of this industry question the fit of families as an adequate ownership and governance category. This chapter devotes special attention to analyzing the role of innovation, in reference to established literature that has extensively investigated the most important technological trajectories and discontinuities that characterize the industry’s evolution, and focuses on the most recent technological dynamics and current organization of innovative activities. Finally, a dedicated focus on the Italian context helps illustrate the country-level environmental conditions that shape the conduct of Italian family firms, as analyzed in Chap. 5.

Family Business and Technological Innovation: Evidence from the Italian Pharmaceutical Industry

This chapter analyzes family and non-family firms’ innovative activity performance in the Italian pharmaceutical industry. By taking stock of literature on family firms and innovation management, as reviewed in Chaps. 2 and 3, it develops theoretical arguments regarding the multidimensional involvement of families in the innovative performance of Italian pharmaceutical firms, in terms of both the scale and quality of innovation. This chapter includes an empirical section that describes data sources, details the data collection process, and explains the methodology for the data analysis. It concludes by presenting and discussing the empirical findings and drawing conclusions from this evidence.