Reverse Transfers of Innovation and National Development: Evidence from Brazilian Subsidiaries

• Published in: Journal of technology management & innovation Vol. 10; no. 4; pp. 1 - 8
• Main Authors: Alves Bezerra, Maitê, Mendes Borini, Felipe, Ferranty Maclennan, Maria Laura
• Format: Journal Article
• Language: English; Portuguese
• Published: Santiago Universidad Alberto Hurtado; JOTMI 01-12-2015; Universidad Alberto Hurtado. Facultad de Economía y Negocios; Universidad Alberto Hurtado
• Subjects: ENGINEERING, MULTIDISCIPLINARY; innovation transfer; Innovations; process innovation; product innovation; reverse transfer; Subsidiaries; process innovation; product innovation; innovation transfer; subsidiaries; reverse transfer
• ISSN: 0718-2724; 0718-2724
• DOI: 10.4067/S0718-27242015000400001

The search for innovation has become an important motivation for the internationalization of companies in emerging countries. In that context, this study tests the impact that a nation’s development has on whether subsidiaries transfer innovation of products or that of processes. Survey data collected from 73 subsidiaries of Brazilian companies indicate that companies located in developed markets tend to transfer more product-oriented innovations than do those based in emerging countries. Furthermore, the size and age of a subsidiary has an impact on the transfer process. The larger and younger the subsidiary, the more likely a company is to favor the flow of product innovation into its headquarters. The level of national development was not identified as an influence on the flow of process innovation.