Technology Spillovers between EU MNCs and Mexico: Steps Towards Local Sustainable Development?

The paper revises, based on recent literature, whether EU MNCs develop technology spillover that have a positive impact on Mexican economy. Surveyed and interviewed authorities from relevant governmental and private institutions confirmed Dunning’s findings (1997), pointing to the fact that MNCs have unique advantages over local firms, which could have a desirable influence to the local economic development. Nevertheless, and again similar to Dunning’s findings, EU subsidiaries were found to still retain a modest number of direct links, mainly with suppliers rather than with other local entities in order to obtain generally low-technology products rather than innovative technology, taking advantage of low production costs.