This paper considers the effect of acquisition FDI on the knowledge production function. We distinguish between … complementarities in the knowledge assets of the MNE and the target firm as a reason for FDI. In contrast, consistent with technology … sourcing FDI, acquisitions from non-leading countries increase internal R&D efforts. -- MNE ; knowledge production function …

to push forward the global frontier, but mere production of knowledge does not guarantee that others are able to build on …

The importance of innovation for the economic performance of industrialized countries has been largely stressed … recently by the theoretical and empirical literature. Moreover the intensity of knowledge externalities in generating … innovation, is the key parameter in determining sustained growth in a model with endogenous technological change. This paper …