Geographical Amplitude in the International Generation of Technology: Present Situation and Business Determinants

Abstract

Building on a rich dataset with information on 65,000 firms and 465,000 European patent applications from 1978 to 2000, this paper addresses the geographical amplitude of international technology generation. First, we show that the number of countries hosting international technological activities is increasing. The USA and some developing nations benefit from this internationalisation. Conversely, although Europe as a whole still plays a leading role in the encouragement of foreign technological activities, some European countries, such as Germany and the UK, appear to be losing their technological appeal. Second, we verify that multinational corporations (MNCs) have increased the geographical amplitude of their technological activities. In fact, the mean number of countries in which MNCs internationalised technology generation has doubled during the 23 years we have analyzed. Third, we address the business characteristics that explain this phenomenon. A negative binomial regression suggests that internationalisation is higher in MNCs showing a greater technological diversification, a higher volume of technological activity, a wider presence in international markets and more experience in the international generation of technology. Finally, American corporations and (regardless of the home country) those firms whose main technological fields are in chemistry, pharmaceuticals, or electronics, present the highest geographical dispersion of their international technological activities.

Keywords: technology internationalisation,geographical dispersion in technology generation,multinational corporations,patent applications,european route

JEL Classification: O32, O34, F23