Dynamic effects of learning on the innovative outputs and productivity in Spanish multinational enterprises

Abstract Empirical studies have consistently illustrated the existence of a relationship between the level of productivity and the international commitment of ?rms. Few studies have considered the effects of learning by foreign direct investment (FDI). We use a sample of Spanish manufacturing ?rms to analyze the effect that the multinational enterprise status of a ?rm has on its ex-post innovative performance and productivity. Our ?ndings reveal dynamic positive effects of FDI on the technological performance of ?rms, with increments in patents and product innovation taking place before subsequent increments in productivity occur.Keywords Learning by FDI Firm heterogeneity Knowledge ?ows Productivity Innovative performanc