A regional approach to study technology transfer through foreign direct investment: The electronics industry in two Mexican regions

Abstract

This paper develops a conceptual framework and presents empirical evidence to examine technology transfer from foreign direct investment (FDI) to host regions, from a systemic perspective that integrates micro- (the firm) and meso (the region)-level analyses. This approach helps identify four different levels at which technology transfer may occur. Comprehensive fieldwork in Mexico was undertaken to collect evidence of an FDI-led, large industry (electronics) in two regions. The empirical evidence collected in this research shows that technology transfer derived from FDI may impact diverse actors of the host region (local firms, universities, research centres, industry associations), but also that its occurrence is neither automatic nor homogenous across regions.