SMEs´ absorptive capacities and large firms´ knowledge spillovers: Micro evidence from Mexico
De Fuentes, Claudia
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The aim of this paper is to analyze the relationship between large firms´ knowledge spillovers and small and medium enterprises (SMEs) absorptive capacities. We built direct indicators for these two concepts and we carried out a structural equations analysis to determine the relationship between them. Based on firm level original data from a survey that focus on SMEs in a Mexican locality, this paper argues that in a lowtech and mature sector, such as the machine shop sector, that operates in a loosely articulated local system, two spillover mechanisms are relevant: the backward linkages and the employees´ mobility. Regarding SMEs’ absorptive capacities we found that they are strongly influenced by organizational capabilities and innovation and learning activities. We also found that knowledge spillovers are strongly correlated to absorptive capacities.