Internationalisation Theory and Technological Accumulation: An Investigation of Multinational Affiliates in East Germany

274 Pages·2012·1.94 MB·English

by  Björn Jindra (auth.)

Studies in Economic Transition
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Internationalisation
Theory and Technological
Accumulation
An Investigation of Multinational
Affiliates in East Germany
Björn Jindra
Halle Institute for Economic Research, Germany
© Björn Jindra 2012
Softcover reprint of the hardcover 1st edition 2012 978-0-230-34729-8
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10 9 8 7 6 5 4 3 2 1
21 20 19 18 17 16 15 14 13 12
Contents
List of Tables vii
List of Abbreviations xi
Acknowledgements xii
1 Introduction 1
1.1 Setting the scene 2
1.2 Research questions, strategy and outline 8
2 General Theoretical Framework 16
2.1 The capability-based theory of the firm 16
2.2 Technological accumulation and the
internationalisation of firms 18
2.3 Research questions in the light of the technological
accumulation theory 28
3 Data 33
3.1 Existing micro-databases on foreign and
West German investment 33
3.2 The IWH FDI micro-database 34
4 Descriptive Overview 42
4.1 General overview 42
4.2 Sectoral composition and specialisation 43
4.3 Regional distribution 44
4.4 Sectoral specialisation at the regional level 47
4.5 Size structure 49
5 Empirical Part I: Location Choice of Multinationals 51
5.1 Introduction and research questions 51
5.2 Theory and international empirical evidence 54
5.3 Empirical evidence on locational determinants
from East Germany 64
5.4 Hypotheses 72
5.5 Theoretical and econometric model 74
5.6 Results and discussion 82
v
vi Contents
6 Empirical Part II: Localisation of the Technological
Activities of Multinationals 93
6.1 Introduction and research questions 93
6.2 Theory and international empirical evidence 97
6.3 Hypotheses 111
6.4 Descriptive analysis 114
6.5 Theoretical and econometric model 128
6.6 Results and discussion 134
7 Empirical Part III: Technological Spillover from
Multinationals 148
7.1 Introduction and research questions 148
7.2 Theory and international empirical evidence 151
7.3 Hypotheses 160
7.4 Descriptive analysis 161
7.5 Theoretical and econometric model 165
7.6 Results and discussion 172
8 Main Contributions, Limitations and Further Research 185
8.1 Summary of research results 185
8.2 I mplications for the technology accumulation
approach 187
8.3 Contributions to research on East Germany 193
8.4 Policy implications 198
8.5 Limitations and further research directions 206
Appendix 214
Notes 237
References 240
Index 254
List of Tables
1.1 Stock of state-owned enterprises and privatisation
mode (1994) 4
4.1 Sectoral employment distribution of total population as
share of total East German manufacturing (EGM) 44
4.2 Sectoral employment distribution of foreign and West
German affiliates 45
4.3 Regional employment distribution of total population and
East German manufacturing (EGM) 46
4.4 Regional employment distribution of foreign and West
German affiliates 46
4.5 Sectoral employment specialisation of population across
East German federal states, in per cent differences to mean
of population 48
4.6 Size distribution of population and share in total East
German (EGM) manufacturing 50
5.1 Measurement of variables in estimations of Chapter 5 77
5.2 Estimation results for CLM base and interaction model 83
6.1 Typology of motives for FDI in foreign technological
activities 98
6.2 Motives for FDI in foreign technological activities 99
6.3 R&D employment and expenditure indicators of
multinational affiliates 115
6.4 Share of multinational affiliates with innovation activities 117
6.5 Share of innovating affiliates with high innovation
intensity 118
6.6 Multinational affiliates’ share of innovative output in
annual turnover 119
6.7 Centralisation of technology related business functions in
affiliates 120
6.8 Importance of HQs as source of technological knowledge
for affiliates (%) 121
vii
viii List of Tables
6.9 The importance of other MNE units as a source of
technological knowledge for affiliates (%) 121
6.10 T he importance of affiliates as a source of technological
knowledge for headquarters (%) 122
6.11 T he importance of affiliates as a source of technological
knowledge for other MNE units (%) 123
6.12 T he importance of HQs as a source of technological
knowledge for asset-augmenting affiliates (%) 123
6.13 U nderlying motives for the internationalisation of
technological activities 124
6.14 Regional specialisation and diversification of affiliates’
R&D and innovation 126
6.15 Estimation results for the basic model of location choice
by population and sample 135
6.16 Estimation results for the location of affiliates’ R&D and
innovation 138
6.17 Estimation results for the location choice with different
motives for technological activities 142
7.1 Potential for technological spillover via backward
linkages (%) 163
7.2 Potential for technological spillover via forward
linkages (%) 164
7.3 Potential for horizontal technological spillover (%) 165
7.4 Measurement of variables in estimations of Chapter 7 168
7.5 Estimation results for model with centrally driven
technological heterogeneity 173
7.6 Estimation results for model with locally driven
innovation heterogeneity 176
7.7 Estimation results for model with locally driven R&D
heterogeneity 179
A1 Sectoral distribution in population and sample, 2007 214
A2 Average number of employees in population and
sample, 2007 215
A3 Distribution of firms across size classes in population and
sample, 2007 215
List of Tables ix
A4 Regional distribution across federal states in population
and sample, 2007 215
A5 Regional distribution across ROR in population and
sample, 2007 216
A6 Structure of non-respondents and respondents 217
A7 Sectoral distribution of respondents and non-respondents,
2007 218
A8 Average number of respondents and non-respondents,
2007 218
A9 Distribution of firms across size classes for respondents and
non-respondents, 2007 219
A10 Regional distribution of respondents and non-respondents
at federal state level 219
A11 Regional distribution across ROR for respondents and
non-respondents 220
A12 Y ear of entry of multinational affiliates in the sample 221
A13 Share of ownership held by multinational investors in the
sample 221
A14 T ype of foreign/West German owner in the sample 221
A15 Initial entry mode of investor in the sample 222
A16 Home countries of multinational affiliates in the sample 222
A17 Sectoral distribution of total population and
manufacturing, 2007, by number of firms 223
A18 Sectoral distribution of total population and
manufacturing, 2007, by employment 224
A19 Regional distribution of Foreign and West German
affiliates by regional units in East Germany (EG),
2007 225
A20 Regional distribution of firms in total population
and East German manufacturing (EGM), 2007 226
A21 Regional distribution of employment in total
population and East German manufacturing
(EGM), 2007 227
A22 Regional employment distribution of foreign vs West
German population, ROR units, 2007 228