TECHNOLOGY, MARKET CHARACTERISTICS, AND SPILLOVERS

Using detailed (unpublished) industry data from the Mexican manufactur ing industry, this paper examines the relation between observed techno logy spillovers from foreign direct investment and proxies for the com plexity of MNC technology. The results suggest that advanced MNC techn ologies or large technology gaps alone do not constitute unsurmountabl e obstacles to spillovers, but that spillovers are less likely in indu stries with 'enclave' characteristics, i.e. where large technology gap s and high foreign shares coincide.