This paper employs a firm-level panel data set for a high-tech cluster in the People's Republic of China to examine knowledge spillovers from multinational enterprises (MNEs) to domestic firms, focusing on the role of MNEs' employment of educated workers. We find that knowledge within MNEs...

Using a unique firm-level dataset from China's quot;Silicon Valley,quot; we investigate how multinational enterprises (MNEs) affect local entrepreneurship and Ramp;D activities upon entry. We find that Ramp;D activities of MNEs in an industry stimulate entry of domestic firms into the same...