Does internationalisation of technology determine technological diversification in large firms? An empirical study

Patel, Pari and Le Bas, Christian (2005) Does internationalisation of technology determine technological diversification in large firms? An empirical study. Revue D'Économie Industrielle, 110. pp. 157-173. ISSN 0154-3229

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Abstract

The purpose of the paper is to examine the relationship between technological diversification and internationalisation of technology for large multinational firms, operating at the world technological frontier. More precisely we address the question as to whether internationalisation determines diversification. The analysis is based on a rich database of the European patenting activity of 345 large multinational firms with the highest levels of patenting over two periods of time (1988-1990 and 1994-1996). The relationship is tested using a variety of different regression models. The results show that for the sample as a whole there is no statistically significant relationship between technological diversification and internationalisation of technology. However when the sample is disaggregated according to the predominant internationalisation strategy adopted by a firm, we find a statistically significant relationship. Our results show that in a cross-section of firms adopting a home-base-augmenting strategy, internationalisation determines the level of diversification. Thus amongst such large firms a higher level of internationalisation of technology is associated with a greater level of diversification.

Item Type: Article
Additional Information: The view that internationalisation leads technological diversification of firms has been gaining ground in recent times, but this paper finds only moderate support for the hypothesis, and that when studying firms that adopt this as one of at least 4 possible types of strategy. The paper combines Patel¿s work on firms¿ databases with Le Bas¿ on dynamic modelling of causality.
Schools and Departments: School of Business, Management and Economics > SPRU - Science Policy Research Unit
Depositing User: Parimal Patel
Date Deposited: 06 Feb 2012 20:31
Last Modified: 03 Apr 2012 16:06
URI: http://sro.sussex.ac.uk/id/eprint/26393
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