"This paper uses a rich panel dataset of Spanish manufacturing firms (1990-2006) and a propensity score reweighting estimator to show that multinational firms acquire the most productive domestic firms, which, on acquisition, conduct more product and process innovation (simultaneously adopting...

Changes in both technology and global political economy have vastly accelerated the pace of globalization in the last 40 years, eroding barriers that limited firms' geographic scope, and unleashing a seemingly unlimited set of new threats, challenges, and opportunities to create value globally....