This paper undertakes a critical review of existing spillover analyses
and proposes a unique analytical framework for examining technological
spillovers in a manufacturing industry setting. The proposed framework
overlaps three different literature strands; cluster and network
dynamics, technological innovations; and spillover literature. It
enables determination of the extent to which multinational presence in a
host country stimulates spillover occurrence to local firms as well as
their nature. Using this framework, the kind and the channels through
which spillovers occur most can be equally determined - this is
particularly relevant for policy intervention in a technically backward
country. Lastly, it allows determination of factors and conditions under
which spillovers from multinationals occur.
Keywords: Multinational presence, spillover index, learning, network dynamics, capability building and innovation.
JEL Classification: C4, F2, L1, L2, L6, O1, O3