its innovation system and the interplay between the firm and the non-firm sector. We argue that, in any economy, when … generated a sub-optimal outcome. Market forces did not result in the western-style innovation system, but a hybrid one, with …-down" supply-driven allocation of resources and a reliance on external (but domestic) network of sources for innovation and capital …

This paper explores the impact of MNEs on innovation systems and the policy options available for peripheral economies …

their technological needs. However, accessing to foreign knowledge implies integration with the host country innovation … the MNE, we argue that home country innovation systems can also benefit from reverse knowledge transfer. Policy makers …

of MNE R&D. Innovation can be undertaken in order to adapt its existing products and services to local stimuli. This is … 'demand-driven R&D'. Innovation can also be in stand-alone R&D facilities which are considerably more knowledgeintensive, and … tendency to focus on FDI flows is flawed, since knowledge exchanges and innovation are establishment level phenomena. An MNE …