Multinational Companies, Knowledge and Technology Transfer

Abstract

In this chapter, we review mainly the theoretical and empirical literature on FDI with an emphasis on the technology spillovers and transfer realized by multinationals. In the first section, definitions of the basic concepts used in the study are explained briefly. Next, in the second and third sections, technology diffusion through FDI, growth and the relationship between spillovers and multinationals are presented. Then, the fourth section is devoted to the analysis of main spillover channels identified in the literature. We then examine the determinants of the spillovers in the section five. Theoretical and empirical evidence on the technology spillovers and their effects on the host economies are presented in the sixth section. Review of the related literature on spillovers for Turkey constitutes an important part of the study. The last section summarizes the theoretical framework for the case-study research on both intra- and inter-firm technology transfers in Turkish automotive industry, and reviews the literature on similar case-studies conducted on both foreign countries and Turkey.