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Multinational Firms, Innovation and Productivity

Davide Castellani, Professor of Industrial Economics, University of Perugia and Antonello Zanfei, Professor of Industrial Economics, University of Urbino, Italy
This book gets to the root of how and why multinational firms differ in the cross-border creation, transfer and diffusion of technology, and provides fresh evidence on the effects that these differences have on productivity and innovation in the economic systems in which they are active.
Extent: 264 pp
Hardback Price: £80.00 Web: £72.00
Publication Date: 2006
ISBN: 978 1 84542 198 4
Availability: In Stock
Paperback Price: £33.00 Web: £26.40
Publication Date: 2007
ISBN: 978 1 84720 322 9
Availability: In Stock
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  • Business and Management
  • International Business
  • Organisational Innovation
  • Economics and Finance
  • Economics of Innovation
  • Industrial Economics
  • International Economics
  • Innovation and Technology
  • Economics of Innovation
  • Organisational Innovation
This book gets to the root of how and why multinational firms differ in the cross-border creation, transfer and diffusion of technology, and provides fresh evidence on the effects that these differences have on productivity and innovation in the economic systems in which they are active.

Davide Castellani and Antonello Zanfei consider multinationals as heterogeneous institutions that combine internal networks of subsidiaries with external networks of collaborative linkages, to bridge different economic and innovation systems. They examine heterogeneity in productivity and innovative behaviour between multinational and national firms, as well as across and within multinationals. The authors argue that not every foreign firm is a good source of externality, and not every domestic firm is equally well placed to benefit from multinationals. It is shown that spillovers from multinationals differ according to the technological profiles, embeddedness and linkage creation of both foreign and domestic firms active in local markets. The book supports this view with empirical evidence based on illustrative case studies, and on econometric analysis using extensive firm-level datasets on multinational activities, innovation and economic performances.

Integrating an in-depth account of state of the art literature with detailed evidence, this book will be of great interest to an extensive audience. This will encompass students, researchers, academics, policy makers and practitioners across a wide range of disciplines including: international business, economics and management of innovation, international economics and industrial organisation.
‘The book assumes an original place in the literature. . . Castellani and Zanfei show that the economic impact of MNEs on innovation and productivity depends on evolutionary features of firms and industries, particularly on the heterogeneity of firm strategies and behaviours. . . this volume contains high-quality, well-written research. . .’
– Simona Iammarino, Research Policy

‘. . . this book offers the reader a well-written and very comprehensive analysis on the link between innovation and internalization which leads to insights into firm heterogeneity. The authors have succeeded in synthesizing the vast body of theoretical and empirical research and given an up-to-date overview of the various issues involved. This is then complemented with their own research findings. . . The book will undoubtedly enrich the debate on the behavior and impact of MNEs.’
– Yama Temouri, Journal of International Business Studies

‘Davide Castellani and Antonello Zanfei, two well-known Italian economists, have brought forth an excellent new book. . . I think this book will serve as a starting-point for many interesting studies, both because of its findings and because of its empirical and theoretical rigour. . . the book lays an excellent and empirically well founded foundation that opens the way for what we need most in research on the international innovatory activities and R&D configurations of MNCs: intrafirm data and the study of intrafirm processes, configurations and specific interactions with the host country environment. The book to me is an important step in moving innovation research forward in this direction. . . I am sure that this book will serve as a thought-provoking starting point for many future studies on firms’ international innovatory activities and therefore recommend it without any reservation.’
– Marcus M. Keupp, Creativity and Innovation Management

‘Castellani and Zanfei have developed an original and comprehensive analysis of the role of multinational firms in the transfer, creation and diffusion of technology. By developing their view of the multinationals as “double network institutions”, the authors provide new insights on a variety of key issues at the frontier of economics of international production and innovation. This book is thought-provoking, incisive and topical, and should be required reading for both economists and policymakers alike.’
– Rajneesh Narula, University of Reading, UK

‘Castellani and Zanfei present an in-depth theoretical and empirical analysis of the key issues underpinning the relationship between innovation and multinationality. This book is strongly-recommended reading for any researcher working on innovation or multinationality or the interface between the two.’
– Grazia Ietto-Gillies, London South Bank University, UK
Contents: Introduction Part I: The Changing Role of Multinational Firms in Innovation 1. Views on Multinational Firms and Innovation 2. The Double Network Structure of Multinational Firms: A Review of the Evidence Part II: How Firms Differ in Innovation, Productivity and Internationalisation 3. Heterogeneity and International Involvement 4. Heterogeneity Across and Within Multinational Firms Part III: Firm Heterogeneity, Multinationals and Spillovers 5. Multinational Firms and Spillovers: Theoretical, Methodological, and Empirical Issues 6. In Search of Horizontal Spillovers from Multinationals: The Role of Firms’ Heterogeneity Appendix Data sources The Elios Dataset The Community Innovation Survey (CIS) The CIS-Elios Dataset References Index