Global and Local Knowledge Linkages: The case of MNE subsidiaries in Argentina

This paper is about the role of MNE subsidiaries in the generation of knowledge and linkages in industrialising countries. It develops an original typology of MNE subsidiaries based on the nature of their global linkages. Then, it explores how this typology is connected with different mental models of MNEs and discusses the impact of these two aspects on intra-subsidiary innovative activity and the formation of knowledge linkages at the local level two important dimensions affecting subsidiaries capacity to generate knowledge spillovers in host countries. Based on Argentinean data, the empirical analysis suggests that MNE subsidiaries engage in very diverse types of global networking. More specifically, the paper finds that the nature of such diverse global networks affects the local capabilities and the formation of knowledge linkages at the domestic level. In the light of this finding, we discuss the role of different types of subsidiaries on the generation of technological spillovers in host industrialising countries.