Multinationals, geographical spillovers, and regional development in Thailand

SAJARATTANOCHOTE S. and POON J. P. H. Multinationals, geographical spillovers, and regional development in Thailand, Regional Studies. Much of the evidence supporting the competency of agglomeration economies through regional spillovers is largely derived from industrialized countries. This literature focuses on the advantages of geographical clustering for firms' technological innovation. Their findings, however, are less relevant for a developing country like Thailand where human capital and technological capability is low. This paper examines the geography of technology flows among multinational enterprises located in the metropolitan region of Bangkok (BMA). It finds evidence of limited regional spillovers to first and second-order neighbours. Transfer of technology to Thai firms further varies by nationality, sector, size, and age of multinational enterprises.