TY - JOUR AU - Blomstrom,Magnus AU - Kokko,Ari AU - Zejan,Mario TI - Host Country Competition and Technology Transfer by Multinationals JF - National Bureau of Economic Research Working Paper Series VL - No. 4131 PY - 1995 Y2 - March 1995 UR - http://www.nber.org/papers/w4131 L1 - http://www.nber.org/papers/w4131.pdf N1 - Author contact info: Magnus Blomstrom European Institute of Japanese Studies Stockholm School of Economics Post Office Box 6501, Sveavagen 65 S-113 83 Stockholm SWEDEN Tel: 46-8-7369265 Fax: 46-8-313017 E-Mail: magnus.blomstrom@gmail.com Ari Kokko European Institute of Japanese Studies Stockholm School of Economics S-113 83 Stockholm, SWEDEN E-Mail: ako.int@cbs.dk Mario Zejan AB - This paper examines whether rivalry in host country markets may force multinational films to increase the technology transfer to their foreign affiliates. Such technology flows should be interesting from the perspective of the host country and its firms, since they would increase the potential for "spillovers". Using detailed (unpublished) industry data from Mexican manufacturing industry we find that indicators for local competition are positively related to the technology imports of foreign owned affiliates. The effects appear to be strong in consumer goods industries, which suggest that foreign multinationals are especially sensitive to the local market environment when barriers to entry in the form of complex technology or high capital requirements are relatively low. ER -