Lenger, Aykut and Erol Taymaz [Department of Economics, Middle East Technical University, Ankara Turkey]
Revised version published in Journal of Evolutionary Economics, vol.16, Numbers 1-2, April 2006, pp. 137-153.
FDI has been considered by many development economists as an important channel for transfer of technology to developing countries. It is suggested that modern, advanced technologies introduced by multinational firms can diffuse to domestic firms through spillovers. In this paper, we study innovation and technology transfer activities of domestic and foreign firms in Turkish manufacturing industries, and the impact of horizontal, vertical and labor spillovers on these activities. Our analysis shows that foreign firms are more innovative than their domestic counterparts, and transfer technology from abroad (mostly from their parent companies). ....
