Is Co-Invention Expediting Technological Catch Up? A Study of Collaboration between Emerging Country Firms and EU Inventors
World Development 77, 16: 192-205
The article is co-authored with Elisa Giuliani and Arianna Martinelli
Growing internationalization constitutes an opportunity for technological catch up. In this paper we analyze Brazilian, Indian, and Chinese cross-border inventions with EU-27 inventors. Our results suggest that these inventions represent an opportunity for emerging country firms to accumulate technological capabilities, access frontier knowledge, and appropriate the property rights of co-inventions.
The impact of outward FDI on the performance of Chinese Firms featured in The Economist
The article on The impact of outward FDI on the performance of Chinese Firms co-authored with Claudio Cozza and Marco Sanfilippo has been featured in The Economist, September 12th 2015.
China Economic Review 36, December, 42-57
The article is co-authored with Claudio Cozza and Marco Sanfilippo
This paper investigates the effects on Chinese firms of Outward FDI into advanced European countries. The results provide robust evidence supporting the view that China‟s OFDI so far have had a positive impact on domestic activities in enhancing firms‟ productivity and scales of operation, measured by sales and employment. Featured in The Economist, September 12th 2015.
UNU-MERIT Working Papers #2015-009
with Riccardo Crescenzi and Carlo Pietrobelli
This paper looks at the location choices of MNEs in the European Union (EU-25) regions and unveils that EMNEs follow distinctive location strategies. Their attraction into large regional markets is similar to AMNEs as well as their irresponsiveness to efficiency seeking motives. Conversely, the most knowledge-intensive investments respond mainly to strategic assets and the agglomeration of foreign investments in the same business functions.
Papers in Innovation Studies #27 CIRCLE – Lund University
with Vito Amendolagine and Claudio Cozza
In this paper we undertake an empirical analysis of Chinese and Indian FDIs in Europe to investigate their identity and characteristics and the association between these features and their international business strategies. We exploit a dataset at the level of the investing firms. In relation to mode of entry, we find that the greenfield is a more likely option for large-sized companies, and that weak propensity for innovation is associated with a low probability to enter through a merger or acquisition. A high propensity for innovation is related to asset-seeking FDI, while high profitability is needed to invest in the core EU countries.
BOFIT Discussion Papers 24 • 2014
with Claudio Cozza and Marco Sanfilippo
Using a new firm-level database, EMENDATA, this paper investigates the effects on Chinese multinational enterprises of Outward FDI (OFDI) into advanced European countries. Propensity score matching is combined with a difference-in-difference estimator to reduce the problems of self-selection of treated firms in foreign markets. The results provide robust evidence in support of the view that China’s OFDI had so far a positive impact on domestic activities in enhancing firms’ productivity and scales of operation.
China and the World Economy, 22, 6: 44-63
The article is written in collaboration with Alessia Amighini, Claudio Cozza and Marco Sanfilippo.
The empirical literature on China’s outward foreign direct investment mainly relies on aggregate data from official statistics, but the reliability of such data is currently a matter of concern because it does not take account of relevant features such as industry breakdown, ownership structure and entry mode. A novel firm-level database, EMENDATA, compiled by matching data from several available sources on various types of cross-border deals and including information on group structure, provides a more accurate picture and enables new empirical analyses of the rapidly increasing presence of Chinese companies abroad.
CIRCLE WP, 3, University of Lund, Lund. Forthcoming in The Routledge Companion to Merger and Acquisition; A. Risberg, D. King and O. Meglio (Eds); Routledge, London.
With L. Piscitello and V. Scalera
The present paper is about the ownership choices by Emerging Market Multinational Enterprises (EMNEs) when they invest in Europe through M&As, and the relationship with the main motivations underlying their international expansion. Namely, we claim that EMNEs prefer to acquire less control and keep the local partner when they invest for seeking knowledge. Additionally, EMNEs choose partial acquisitions in case of high dissimilarity in terms of culture, industry and knowledge base.
Our empirical analysis relies on a dataset of M&As undertaken by Chinese and Indian MNEs in high and medium-high tech sectors, in the period 2003-2011. We use content analysis of public announcements and company reports for classifying the main motivation of the acquisitions, and econometric analysis for testing our hypotheses. Our results confirm the expectations.
CIRCLE WP, University of Lund, Lund. Forthcoming in China and the World Economy.
With A. Amighini, C. Cozza and M. Sanfilippo
The empirical literature on China’s outward foreign direct investment (OFDI) mainly relies on aggregate data from official statistics, whose international reliability is currently a matter of concern, not taking account some relevant features such as the industry breakdowns, ownership structures and modes of entry. A novel firm-level database – EMENDATA – compiled by matching data from several available sources, on various types of cross-border deals, and including information on group structure, enables new empirical analyses and provides new insights into the rapidly increasing presence of Chinese companies abroad. In this paper, exploring the potential of this database we offer an informative and comprehensive assessment of the geographical and specialization patterns of Chinese outward FDI into Europe and suggest new avenues for further research on this highly policy relevant issue.
Frontiers of Economics in China, 8 (3), 903-936
The article is co-authored with Alessia Amighini and Marco Sanfilippo.
We empirically analyse the host country determinants of Chinese outward foreign direct investments (FDI) for the years 2003 to 2011, using disaggregated data by country and industry. Our results suggest that the host-country determinants of Chinese FDI differ between high- and low-income countries. While all Chinese FDI are invariably market seeking, other motivations stand out for different groups of sectors in specific country groups. The resource seeking motivation is relevant for manufacturing FDI to high-income countries with relatively high fuel abundance, and to low-income countries with primary resource abundance (other than fuels). Differently, the strategic-asset seeking motivation, measured by the level of R&D spending on GDP, positively and significantly only affects Chinese manufacturing and services FDI to OECD countries, while higher education levels are attraction factor for all investing firms. Natural resources are an important attraction factor for Chinese FDI, not only in resource-related sectors, but also in manufacturing and services sectors. Finally, Chinese FDIs tend to follow exports (rather than fostering them), especially in services sectors.