International generation of technology: an assessment of its intensity,motives and facilitators

This paper assesses two decades of international generation of technology through EPO data: we quantify its volume, analyse its motives and identify several business traits that facilitate its implementation. Our database, which is composed of 65,000 firms and 465,000 patents, shows that most technological activities are still carried out in the home country of multinationals. We nevertheless find that the international generation of technology has been continuously increasing during the 80s and 90s. This growing trend partially reflects the use of global technological supply as a source of new competences; however, data verifies that adapting products and processes to foreign markets is an even more relevant motive. Lastly, after controlling for the home country and geographic diversification of multinationals, we search for structural and technological business features that make the internationalisation of their technological activities easier. Our model thus verifies the relevance of the size and technological activity of parent companies.