FDI, Social Ties and Technological Learning in New Silicon Valley Clones. Evidence from the Costa Rican ICT Cluster

Published on Aug 1, 2011in Journal of Development Studies
· DOI :10.1080/00220388.2010.547935
Luciano Ciravegna13
Estimated H-index: 13
(Lond: University of London)
This study, based on qualitative evidence collected through 150 interviews with local entrepreneurs, multinational corporations (MNC) directors, and other actors, contributes to the understanding of the effects of foreign direct investment (FDI) by showing that the social ties of local entrepreneurs and MNC directors affect technological learning in the Costa Rican information and communication technologies (ICT) cluster in ways that are often overlooked by the literature on technological capabilities. It illustrates that the social disembeddedness of MNC directors and the low endowment of transnational social ties of local entrepreneurs contribute to explain the limited effect of FDI on technological learning in the Costa Rican Silicon Valley clone.
  • References (51)
  • Citations (22)
📖 Papers frequently viewed together
215 Citations
2,257 Citations
7,760 Citations
78% of Scinapse members use related papers. After signing in, all features are FREE.
#1John H. DunningH-Index: 64
#2Sarianna M. LundanH-Index: 15
This is the second edition of the celebrated volume by Professor John H. Dunning, first published in 1993, which has now been not only updated but also enriched with the addition of a number of new topics. This addition was not least due to the expertise of the co-author, Sarianna Lundan, in the institutional aspects of international business and the internal governance of transnational corporations (TNCs). It is a comprehensive synthesis of all the theories in International Business based on ex...
4,241 CitationsSource
#1Luis López (INCAE Business School)H-Index: 7
#2Sumit K. Kundu (College of Business Administration)H-Index: 23
Last. Luciano Ciravegna (INCAE Business School)H-Index: 13
view all 3 authors...
This paper provides empirical evidence about born-global firms in the software industry of a small developing country with an open economy: Costa Rica. The paper is based on data collected through interviews with CEOs or founders of 40 Costa Rican software companies. Findings show that there are few born-global firms among Costa Rican software providers. We find that most companies followed a gradual approach to internationalization, and they did not export immediately upon birth. A careful anal...
215 CitationsSource
Costa Rica has two large public universities. They educate the workforce of the Costa Rican Information and Communication Technology (ICT) cluster, which transformed a small coffee-exporting country into the first Latin American ICT producer per capita. They also created the engineers and technicians that have attracted investments from several knowledge-intensive Multinational Corporations (MNCs), including Intel, and account for a far larger share of Research and Development (R&D) expenditure ...
5 CitationsSource
#1Effie Kesidou (University of Nottingham)H-Index: 9
#2Ha Henny Romijn (TU/e: Eindhoven University of Technology)H-Index: 26
Summary In economically advanced countries, local knowledge spillovers (LKS) between agglomerated firms are seen as major drivers of regional innovation and growth. In contrast, innovation research focusing on developing countries has emphasized international linkages, and has largely neglected LKS. This paper assesses the importance of LKS for innovation of clustered firms in a developing-country setting. An econometric analysis with new survey data from software firms in Montevideo, Uruguay, s...
44 CitationsSource
#1Daniel ChudnovskyH-Index: 14
#2Andrés LópezH-Index: 13
Last. Gastón RossiH-Index: 2
view all 3 authors...
Argentina received significant amounts of foreign direct investment inflows during the 1990s. This paper analyses whether positive (or negative) productivity spillovers arose from the increasing presence of transnational corporations (TNCs) affiliates in Argentina. We found that TNCs affiliates had higher productivity levels than domestic firms and that the latter, on average, received neither positive nor negative horizontal spillovers from the growing presence of foreign firms in the local eco...
53 CitationsSource
#1Elisa Giuliani (EUI: European University Institute)H-Index: 23
Over recent decades, governments in industrializing countries have promoted policies to attract foreign investors, anticipating the benefits of technology transfer to host economies. During the 1990s, Costa Rica adopted an industrialization strategy based on attracting high-tech multinational companies (MNCs). Using an original survey of a sample of high-tech MNC subsidiaries, this article shows that the new wave of efficiency-seeking subsidiaries tend not to transfer knowledge to domestic firms...
25 CitationsSource
Software industry development is acknowledged as an important engine of economic growth for many less developed countries. The role of national policy has been identified by various researchers as a catalyst to software industry and software exports development. Software development is a service that is both labour and knowledge-intensive, and thus an important aspect of related policy is concerned with the provision of appropriately educated and trained human resources in sufficient quantity. T...
18 CitationsSource
#1Paola Criscuolo (Imperial College London)H-Index: 19
#2Rajneesh Narula (University of Reading)H-Index: 40
The paper develops a more precise specification and understanding of the process of national-level knowledge accumulation and absorptive capabilities by applying the reasoning and evidence from the firm-level analysis pioneered by Cohen and Levinthal (1989, 1990). In doing so, we acknowledge that significant cross-border effects due to the role of both inward and outward FDI exist and that assimilation of foreign knowledge is not only confined to catching-up economies but is also carried out by ...
134 CitationsSource
#1Eva Paus (Mount Holyoke College)H-Index: 11
#2Kevin P. Gallagher (BU: Boston University)H-Index: 22
This article offers an analytical framework for understanding the missing links between FDI and development, and applies it to the high technology sectors of Costa Rica and Mexico, the two countries in Latin America that have attracted the highest percentage of FDI in manufacturing. Since the advancement of knowledge-based assets in this sector is at the heart of structural change and development, we focus specifically on the conditions that enable or prevent positive knowledge spillovers from F...
48 CitationsSource
#1Andrea Morrison (Bocconi University)H-Index: 19
#2Carlo Pietrobelli (Roma Tre University)H-Index: 26
Last. Roberta Rabellotti (University of Eastern Piedmont)H-Index: 28
view all 3 authors...
This paper presents a critical review of the global value chain (GVC) literature in light of the “technological capabilities” approach to innovation in less-developed countries (LDCs). Participation in GVC is beneficial for firms in LDCs, which are bound to source technology internationally. However, the issues of learning and technological efforts at the firm level remain largely hidden in the GVC literature. We propose a shift in the empirical and theoretical agenda, arguing that research shou...
243 CitationsSource
Cited By22
#1Mario Davide Parrilli (BU: Bournemouth University)H-Index: 14
ABSTRACTIn this paper, we discuss the growth potential of clusters and industrial districts (CIDs) in international markets. Over the past two decades, CIDs have gone under increasing competitive p...
1 CitationsSource
1 CitationsSource
#1Luciano Ciravegna (INCAE Business School)H-Index: 13
#2Olli Kuivalainen (University of Manchester)H-Index: 20
Last. Luis López (INCAE Business School)H-Index: 7
view all 4 authors...
The literature on international business and international entrepreneurship provides multiple explanations for early internationalization. Using fuzzy-set qualitative comparative analysis, this study examines the antecedents of early internationalization for small firms based in a small economy, focusing on entrepreneurs’ attitudes toward the economic opportunities available in their domestic market, the risk of internationalizing, and the profitability of entering foreign markets. Three additio...
5 CitationsSource
#1Susann Schäfer (FSU: University of Jena)H-Index: 1
#2Sebastian Henn (FSU: University of Jena)H-Index: 7
6 CitationsSource
#1Sebastian Henn (FSU: University of Jena)H-Index: 7
#2Harald Bathelt (ECNU: East China Normal University)H-Index: 3
8 CitationsSource
#1Haijun Bao (Zhejiang University of Finance and Economics)H-Index: 4
#2Xiaoting Zhu (Zhejiang University of Finance and Economics)H-Index: 2
Last. Jibin Xue (Zhejiang University of Finance and Economics)H-Index: 2
view all 5 authors...
Rapid urbanization in China has resulted in the inability of land-lost farmers, who are considered to lack sufficient human capital. Few studies have been conducted to investigate the effects of social network and land expropriation on the human capital of land-lost farmers. Therefore, effective improvement of land-lost farmers’ human capital remains unknown. To address this gap, this study investigates the effects of social network on the human capital of land-lost farmers and the moderating ef...
8 CitationsSource
#1José Guimón (UAM: Autonomous University of Madrid)H-Index: 8
#2Evita Paraskevopoulou (Charles III University of Madrid)H-Index: 4
AbstractRecent research has emphasized that success of industrial clusters is not only driven by intra-cluster knowledge sharing (‘local buzz’) but also by externally sourced knowledge (‘global knowledge pipelines’). This article examines the factors that determine the channels through which clusters connect with global knowledge pipelines depending on the structure of the global value chain within which they are inserted, their knowledge base and their stage of evolution. Building on a comparat...
3 CitationsSource
#1Esteban Brenes (INCAE Business School)H-Index: 12
#2Arnoldo R. Camacho (INCAE Business School)H-Index: 3
Last. Caleb A. Pichardo (INCAE Business School)H-Index: 2
view all 4 authors...
This paper explores the economic trends of Latin America, highlighting their influences on the strategies and behaviors of different types of businesses. It introduces a Special Issue featuring a selection of the best papers presented at the Sixth International Conference on Strategic Management in Latin America, held at INCAE Business School in 2015. The theme for this Conference was: “Strategies for Growth, Regional Expansion and Global Competition”. The Conference provided a big opportunity t...
13 CitationsSource
Purpose – The purpose of this paper is to combine notions from the POST Model of Economic Geography and Learning Theory from International Business to study how firms may enhance their responsiveness to institutional processes and changes through different forms of international learning. Focussing on one form of institutional changes, namely pro-market reforms, the paper analyzes how firms may boost the potential benefits from such changes through international strategies that increase their ac...
10 CitationsSource