Title: Foreign ownership and domestic cooperation for innovation during good and harsh economic times
Authors: Antonio García-Sánchez; Ruth Rama
Addresses: Universidad de Sevilla, Avda. Ramón y Cajal, 1, 41018 Sevilla, Spain ' IEGD-CSIC, Albasanz, 26-28, Madrid 28037, Spain
Abstract: A sample of firms active in the Spanish information and communication technology sector during 2003-2014 is analysed to assess whether foreign subsidiaries are likely to make a technological contribution to domestic innovative capabilities during expansive phases of the business cycle and during recessions. Domestic firms are used as a control group. Innovative foreign subsidiaries are more likely than non-innovative foreign subsidiaries to cooperate for innovation with local partners. However, the most advanced foreign subsidiaries seem reluctant to engage in local cooperation for innovation. Foreign subsidiaries have shown greater capability than domestic firms in increasing their collaboration with local partners during the 2008 crisis.
Keywords: internationalisation of R&D; foreign subsidiaries; cooperation for innovation; ICT sector; crisis; Spain; open innovation; MNEs; domestic firms; great recession.
International Journal of Multinational Corporation Strategy, 2020 Vol.3 No.1, pp.4 - 25
Received: 21 May 2019
Accepted: 05 Sep 2019
Published online: 02 Jun 2020 *