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Multinational corporations as channels for international technology transfer: evidence from the South African innovation survey

In this article, we present evidence consistent with South African subsidiaries of foreign multinationals being channels for the introduction of foreign innovations in the South African market. We use firm-level data from the second wave of the South African Innovation Survey, which covers the 2005-07 period. We find that subsidiaries of foreign multinationals are significantly more likely to introduce product and process innovations, as well as foreign new products and processes than domestic firms that do not belong to a foreign multinational corporation.

R&D, innovation; multinational corporations; technology transfer