Abstract
This study strives at understanding whether foreign subsidiaries are able to cooperate for innovation with local partners during good and harsh economic times. It also asks whether these companies and different types of domestic firms display similar cooperative behaviour during the 2004-2016 period. To this effect, the period is divided into three sub-periods (boom, downturn and recovery) and three logic models with panel data of a representative sample of Spanish firms are proposed. Foreign subsidiaries’ ability to cooperate for innovation is maintained throughout the business cycle. They are better at cooperating than unaffiliated firms but not significantly better than domestic business groups. State-owned enterprises strongly outperform both foreign subsidiaries and domestic private firms during the boom, the downturn, and the recovery. Unaffiliated domestic firms manage to cooperate during the boom and the recovery but not during the downturn. Predictors of cooperative innovation vary throughout the business cycle, but previous cooperative experience is always a crucial encouragement to cooperation for innovation.
Presenters
Antonio García SánchezProfesor Contratado Doctor, Economics and Economic History, Universidad de Sevilla, Spain Ruth Rama
Research Professor, Institute of Economics, Geography, and Demography, CSIC, Madrid, Spain
Details
Presentation Type
Paper Presentation in a Themed Session
Theme
KEYWORDS
Crisis, MNE, Foreign subsidiaries, State-owned enterprises, Networked innovators, Cooperation
