Industry Level Technology Gaps and Complimentary Knowledge Stocks as Determinants of Intra-MNC Knowledge Flows

Pursuing a subsidiary level analysis, this paper tests the ‘technology gap' hypothesis in the context of intra-MNC knowledge flows. Furthermore, it introduces complimentary knowledge stocks into the concept of absorptive capacity. A set of hypotheses is tested in a sample of 434 foreign subsidiaries based in Central and East Europe. We find partial support for the ‘technology gap' hypothesis applied at industry level. Furthermore, subsidiaries' complimentary knowledge stocks increase the probability for corresponding knowledge inflows from the foreign parent