ABSTRACT

This paper tries to assess empirically how technology flows are structured in international firms. Belgian company data from the Eurostat Community Innovation Survey are used, which allow us to map national and international technology transfers and acquisition of know-how used by different types of companies such as subsidiaries of MNEs, headquarters of Belgian MNEs, Belgian exporting firms, or local firms. First, by analyzing the innovation strategies of different types

very open economy, such as Belgium. Second, we determine which modes of information sourcing are most effective to access know-how. At the same time, we distinguish the relative importance of international versus national information sources to the firms. Third, we discuss the importance and directionality of internal technology transfers within MNEs. This allows us to classify subsidiaries according to the relative weight of technology transfers from headquarters to subsidiaries and from subsidiaries to headquarters. The autonomy to source externally, the importance of local external sources and the mechanisms used to transfer externally sourced know-how feature prominently in this classification of subsidiaries.