By Alper Sönmez
This e-book offers facts on how FDI ends up in wisdom and expertise transfers in the direction of family organizations through being attentive to the position of firm businesses. the writer offers a accomplished empirical study carried out at firm-level within the Turkish automobile undefined. utilizing a consultant pattern of face-to-face in-depth interviews with top-executives and a survey of most sensible point managers of household providers, the examine analyzes the life, channels, depth and determinants, and the type of transfers that take place at either inter- and intra-firm point within the undefined. the writer contends that rules aimed toward attracting FDI flows may be re-examined lower than the findings and insights of this learn because it is an important – even if now not adequate - to have a good absorptive skill point and/or expert human capital inventory that allows you to make the most of those flows. This learn has coverage implications for the automobile in addition to sensible strategies for the general public associations and top-executives in rising kingdom businesses and multinationals on the way to conceive and enforce technological know-how and expertise rules in helping the data transfers.
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Extra info for Multinational Companies, Knowledge and Technology Transfer: Turkey's Automotive Industry in Focus
These can be increased by R&D and innovation activities, or by knowledge diffusion from external sources. It is considered that FDI give rise to inflow of advanced knowledge and technologies into the host countries; hence, today knowledge diffusion from FDI is a very important factor especially for the developing countries to access the latest technologies. FDI can bring technology embodied in goods and services, and knowledge as intangible assets; however, to benefit from them is not an automatic process, and it requires that recipient must have some capabilities to absorb, assimilate, and adopt such technologies (see Kinoshita, 2001 for details).
These can be horizontal (intra-industry) or vertical spillovers (inter-industry) depending on whether they are disseminated within or outside the sector of activity of foreign firms that trigger these spillovers. In other words, horizontal spillovers occur from foreign firms to local firms operating in the same industry, while vertical spillovers occur from foreign firms to local firms operating in vertically linked (backward or forward) industries (see Sect. 4 for details). Vertical spillovers emerge from interaction of the multinationals with the suppliers and customers in the local market.
In a similar study, Blomstro¨m and Kokko (1997) also show that there is a positive relationship between the benefits of FDI and technological capability level of domestic firms. In addition, Romer (1986, 1990) in his “endogenous growth theory” emphasized the role of human capital in order to acquire the foreign technologies and to benefit from FDI in host countries by suggesting that human capital would lead to economic growth by using new technologies and efficient production techniques. The simple models in the neoclassical economic theory assume that technology is freely available across, and within countries, and among all firms.
Multinational Companies, Knowledge and Technology Transfer: Turkey's Automotive Industry in Focus by Alper Sönmez