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Internationalisation Theory and Technological Accumulation
An Investigation of Multinational Affiliates in East Germany
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The integration of post-communist countries into the European and global economy after 1990 has led to a renewed interest in the role of multinational enterprises (MNEs) in economic restructuring and technological development. This book explains the expansion of MNEs into a transition economy from the technology accumulation perspective. This theory originates from the work of John Cantwell. It shifts thetraditional focus from technology transfer through foreign direct investmentto international diffusion of innovation in MNEs. It rejects the position that all MNEs offer technological opportunities to host economies. Key assumptions of the technological accumulation approach towards firms' internationalisation are tested, using the examples of foreign and West German MNEs in East Germany. The effects of technological externalities on MNE location choice are analysed, in addition to an exploration of the factors driving the location of foreign affiliates' R&D and innovation activities. The book provides a novel and comprehensive empirical approach to assess the developmental role of MNEs, deriving significant economic policy implications for transition and emerging economies.
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