Patterns of Technology Acquisition: Upstream Linkages Between MNEs and Local Suppliers

Patterns of Technology Acquisition: Upstream Linkages Between MNEs and Local Suppliers

António Carrizo Moreira (University of Aveiro, Portugal)
DOI: 10.4018/978-1-5225-3026-8.ch010
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Abstract

Although MNEs are important players in the present global world, there has been a debate regarding, on one hand, how MNEs contribute to the development of indigenous firms in host countries, and on the other hand, how indigenous suppliers are able to cope with their international technology demanding clients. This chapter analyzes the patterns of technology acquisition of 40 firms that supply eight multinational firms that belong to four different industries. It is possible to conclude that there are certain differences among foreign and indigenous suppliers as well across the industries they belong to. These differences are the result of a cumulative process over time, which reflect the different performances of the companies and their relationships with the environment.
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Background

FDI has become one of the key consequences of the erosion of barriers to international flows of goods and knowledge (Moreira, 2008). Gross domestic product (GDP) grew from 7% of world GDP in 1990 to 32% of world GDP in 2012 (Sun, Lee, & Hong, 2016), which gives a clear picture of the importance of FDI for the world economy.

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