GREENSPILL · The role of multinational firms in the diffusion of green technologies to developing countries

This project aims to study the role of multinational firms in the diffusion of green technologies to developing countries. This project has three main objectives: 1) to study the extent and motives of multinational firms to conduct green R&D activities in developing countries 2) to explore the impact of green technology transfers by multinationals on the environmental performance of developing countries 3) to draw policy implications on the role of multinationals. The economic literature has long recognized the role of multinationals for the transfer of technologies to developing countries. Yet, the motivation for this project stems from the fact that the role of multinationals has not been much studied within the context of green technologies transfers, despite the immediate relevance of this topic on the international policy agenda. This research project aims thus to provide novel empirical evidence on the role of multinationals in green technology transfers and to build bridges between well-established methodologies from the field of international trade to the field of environmental economics. The research project will make a number of important contributions for the economic literature and for the design of European climate and innovation policies. First, by considering the number of foreign green patents invented (and not only filed) in developing countries, the research project proposes a novel indicator of technology transfers, thereby improving on the existing literature. The analysis will also examine how much and why multinational firms conduct green R&D outside their home country. Second, the analysis will use the newest methods from international economics to estimate the impact of green technology transfers by multinationals on the energy productivity of the receiving countries. Finally, the project will conclude by drawing policy implications on the role of multinational firms in the international diffusion of green technologies""