International technology diffusion: Evidence from Swedish patent data

Using references in Swedish patent data, we examine foreign technology sour cing in Swedish multinational enterprises (MNEs) and non-multinational smal l and medium-sized enterprises (SMEs). The results show that both types of firms are more likely to make references to countries with large patent sto cks and to countries that are located close to Sweden. Trade and FDI also s eem to facilitate the transfer of foreign technology to Sweden. However, tr ade contacts seem to be more important for technology sourcing in SMEs than in MNEs. Outward Foreign Direct Investment (FDI) is a channel for the diff usion of foreign technology to both home-country MNEs and SMEs.