Collective Technology Learning Between Transnational Corporations and Local Business Partners: The Case of West Sweden

Abstract

Unique firm-level data from 287 majority-owned foreign affiliates (MOFAs) located in West Sweden are used to analyse the extent in which transnational corporations (TNCs) in a developed host country have established technological linkages, leading to collective technology learning where both TNCs and their local business partners benefit. The findings indicate that local business partners have established substantial levels of organised technological cooperation, not only with manufacturing MOFAs but also with wholesale MOFAs supplying industrial products. This seems to result in collective technology learning where both MOFAs and business partners in Sweden, especially customers, earn advantages. In the case of manufacturing MOFAs, local business partners in West Sweden seem to be important as cooperative partners. By using a multiple logistic regression to analyse key determinants, it was found that the size of MOFAs positively affected the establishment of technological linkages to business partners in Sweden, among both manufacturing MOFAs and sales MOFAs. A positive correlation with linkage formation was also found among manufacturing MOFAs regarding both increasing age and the extent in which they operate within competitive Swedish industry clusters.