MULTINATIONAL-ENTERPRISES AND TECHNOLOGICAL SPILLOVERS - AN EVOLUTIONARY MODEL

This paper analyses the determinants of the impact of foreign multinat ional enterprises on the technological development of domestic films. It argues that the consequences of the foreign presence change accordi ng to market and technological conditions. An evolutionary model of te chnological competition between foreign and domestic firms is develope d which is able to generate both vicious and virtuous circles of devel opment in locations affected by foreign MNE activities. Theoretical an alysis is tested against the empirical evidence for the UK economy (19 83-1989).