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

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.