This study examines the role of multinational firms and global value chain linkages in the cross-country diffusion of emerging technologies. The analysis combines detailed information on the near-universe of online job postings in 17 countries with data on multinational networks and firm-to-firm linkages from 2014 to 2022. Online job postings are utilized to investigate how jobs related to emerging technologies spread through firm networks. The findings show that emerging technology jobs are highly concentrated within multinational firms and their supply chains. Approximately one third of all emerging technology job postings during this period come from Fortune 500 firms, their affiliates, buyers, suppliers, or innovation partners. Although the locations where these technologies originate exhibit a higher prevalence of technology job openings, this advantage diminishes over time as diffusion accelerates in wealthier and geographically closer countries and regions. The study highlights the significant role of firm-to-firm linkages in technology diffusion, with some linkages proving more influential than others. Firms that were previously buyers or innovation partners of establishments in technology-originating locations experienced faster growth in jobs related to these technologies. Moreover, relationships outside corporate boundaries play a particularly critical role, and these connections are influential beyond the factor of geographical distance.
Authors
Bastos,Paulo S. R., Stapleton,Katherine Anne, Taglioni,Daria, Wei,Hannah Yi
- Disclosure Date
- 2024/09/11
- Disclosure Status
- Disclosed
- Doc Name
- Firm Networks and Global Technology Diffusion
- Originating Unit
- Off of Sr VP Dev Econ/Chief Econ (DECVP)
- Pages
- 52
- Published in
- United States of America
- Rel Proj ID
- 1W-Future Of Globalization -- P176113
- Series Name
- Policy Research working paper; PROSPERITY;
- TF No/Name
- TF0B5877-Future of globalization
- Unit Owning
- DECRG: Trade & Intl. Integration (DECTI)
- Version Type
- Final
- Volume No
- 1
Table of Contents
- Introduction 4
- Data and measurement 7
- Online job postings 7
- Identification of new technologies 8
- Industry and region classifications 9
- FactSet data on firm-to-firm relationships 10
- Matching Lightcast job postings to Factset 11
- Measuring technology pioneer locations and additional datasets 12
- Pioneer regions and firms 12
- Distance to pioneer regions and firms 14
- Earnings calls transcripts 14
- Concentration measures 15
- Stylized facts about the global dispersion of new technologies 16
- Technology hiring has become more dispersed across countries and regions over time 16
- Technology hiring is highly concentrated in multinational firms and their supply chains 17
- Technology hiring intensity is higher in richer countries 19
- Geographic proximity matters for the diffusion of technology jobs 20
- Diffusion through multinational supply chains 23
- Empirical specification 24
- Concentration of technology hiring in pioneer locations over time 24
- The role of supply chain linkages to pioneer firms 24
- Results 26
- Diffusion from pioneer firms 26
- Faster diffusion for firms with supply chain linkages 27
- Diffusion through supply chain linkages controlling for distance 28
- Linkages within and outside firm boundaries 29
- Considering multiple linkages 30
- Robustness checks 31
- Studying international linkages only 31
- Excluding pioneers from Silicon Valley 33
- Interacting linkages with affiliates of pioneer firms 34
- Interacting linkages with distance 35
- Technologies that emerged after the Lightcast data start date 36
- Conclusion 38
- Appendix 43
- Lightcast data coverage 43
- Additional Data Processing 45
- Technologies and Keywords 47
- Lightcast-FactSet matching procedure 50
- Pioneer location and industry by technology 52
