Abstract
It is widely accepted by developing countries that technology and knowledge can spill over from Multinational Enterprises (MNEs) to local firms. However, this outcome is not automatic; a broad range of factors affect the existence of such spillovers. This study examines the MNE-related factors which might affect technology spillover channels and the spillover potential for local subsidiaries, particularly in backward linkages, within the specific context of the Turkish manufacturing sector. The evidence suggests that not all MNEs have the same spillover potential and different characteristics of the MNEs affect the spillover channels differently. This implies that a “one-size-fits-all” approach to increase technology spillover benefits of MNEs is sub-optimal and a customized approach is required.