Research seminar by Olga Kuzmina (Columbia University): «Innovation and Foreign Ownership»
Thursday, January 13 International College of Economics held the Research seminar.
Venue: Pokrovski Bulvar, 11, Room Zh-822
Speaker: Olga Kuzmina (Columbia University)
Theme: «Innovation and Foreign Ownership» (joint with Maria Guadalupe and Catherine Thomas) (pdf version)
Abstract: This paper uses a rich panel dataset of Spanish manufacturing firms (1990-2006) and a propensity score reweighting estimator to show that multinational firms acquire the most productive domestic firms, which, on acquisition, conduct more product and process innovation (simultaneously adopting new machines and organizational practices) and adopt foreign technologies, leading to higher productivity. We propose a model of endogenous selection and innovation in heterogeneous firms that jointly explains the observed selection process and the innovation decisions. Further, we show in the data that innovation on acquisition is associated with the increased market scale provided by the parent firm.
Everyone interested is welcome to attend!