Dynamic effects of learning on the innovative outputs and productivity in Spanish multinational enterprises

Abstract

Empirical studies have consistently illustrated the existence of a relationship between the level of productivity and the international commitment of firms. Few studies have considered the effects of learning by foreign direct investment (FDI). We use a sample of Spanish manufacturing firms to analyze the effect that the multinational enterprise status of a firm has on its ex-post innovative performance and productivity. Our findings reveal dynamic positive effects of FDI on the technological performance of firms, with increments in patents and product innovation taking place before subsequent increments in productivity occur.