Foreign subsidiaries in the Spanish food and beverage industry : local networking for innovation

Abstract

We performed econometric analysis to identify some of the main features of food and beverages foreign subsidiaries engaged in local R&D cooperation. In Spain, their contribution to local networks of innovators seems to be financial and, probably, commercial rather than technological. Foreign subsidiaries which display high R&D intensity, a large number of R&D employees or a large share of new products in turnover are not necessarily engaged in local R&D networks. Foreign subsidiaries facing fewer obstacles to innovate than the average F&B firm seem more able to build those networks, probably because they are more attractive to local partners. Economic strength and dominant market position seem especially valued. This finding seems to support the view of the managerial theory on networks, rather than that of the Resource Based View of the firm, which predicts that companies attempt to solve their difficulties by establishing cooperative relationships. Foreign subsidiaries seem to combine internal and external information in order to innovate. Their size or their export activities are not significantly associated to their involvement in local cooperation for innovation