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.

Davide Castellani and Antonello Zanfei consider multinationals as heterogeneous institutions that combine internal networks of subsidiaries with external networks of collaborative linkages, to bridge different economic and innovation systems. They examine 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.

Integrating an in-depth account of state of the art literature with detailed evidence, this book will be of great interest to an extensive audience. This will encompass students, researchers, academics, policy makers and practitioners across a wide range of disciplines including: international business, economics and management of innovation, international economics and industrial organisation.

About the Author

Davide Castellani, Professor of Industrial Economics, University of Perugia and Antonello Zanfei, Professor of Industrial Economics, University of Urbino, Italy

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