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The spillover discussion is part of a broad debate on the effects arising from the presence of multinational enterprises (MNEs) in host economies. Government policy-makers in most countries today compete to attract MNE investment by offering special incentives.
Spillover effects are notably difficult to measure and, thus, determining exactly how MNE’s activities affects the innovative capacity of firms constitute a challenge for researchers.
We aim with this study to answer the following research questions: Are there innovation spillovers effects arising from the presence of MNEs to Brazilian small and medium enterprises (SMEs)? How interactions between MNEs and SMEs contribute to the generate innovation spillovers effects?
The objective of the study is to investigate spillovers effects arising from foreign presence through an association analysis between multinational companies and innovation capacity of SMEs in Brazil.
Revisão de literatura baseada nos principais estudos que identificam os efeitos de transbordamentos decorrente da presença estrangeira. A revisão apresenta os efeitos diretos e indiretos, bem como os canais de ocorrência de tais transbordamentos.
Aiming to identify the spillovers effects arising from foreign presence we have analyzed the association between multinational companies and innovation capacity of SMEs in Brazil by performing a bivariate chi-square test (x2) analysis.
The study population was composed of SME companies in the state of Minas Gerais that had declared any kind of relationship with MNEs.
The results for product innovation factors indicated that only technological intensity variable was associated to product innovation.
The evidence from this study confirm that upstream, downstream and horizontal links are associated with the ability of firms to develop strategic and organizational innovation and absorptive capacity.
Companies that have involvement with multinational companies are more likely to develop process innovation and strategic and organizational innovation.
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