Technology Transfer to Foreign Affiliates by Multinational Enterprises

This paper examines whether Swedish multinational enterprises transfer R&D-generated knowledge to their foreign affiliates. The empirical results suggest that such technology transfer takes place from parent companies to affiliates, especially in the case of newly established affiliates. In process industries, R&D undertaken in the affiliates seems to facilitate the transfer from the parent, highlighting the role of "receiver competence." The findings also support the view that technology is "embodied" in intermediary goods deliveries from parents to foreign affiliates. Embodied transfer appears to be more important to affiliates located in developing countries.