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Research And Development Performed Abroad By U. S. Manufacturing Multinationals

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  • Gary Hewitt

Abstract

This study develops and empirically tests a ‘scenario’ describing the evolution of a typical American multinational manufacturing corporation's (AMMC's) foreign research and development (R & D) activity. It finds that international differences in R & D factor costs probably have very little effect on R & D location decisions. The critical variables appear instead to be less traditional things like the time elapsed since the AMMC first engaged in foreign production. That such variables were discovered and emphasized in the study is a result of the ‘satisficing’ approach adopted in its ‘scenario’. In vindicating that approach, the paper's findings also show the need for economic theorizing to take explicit account of the fact that information costs something to obtain and to use.

Suggested Citation

  • Gary Hewitt, 1980. "Research And Development Performed Abroad By U. S. Manufacturing Multinationals," Kyklos, Wiley Blackwell, vol. 33(2), pages 308-327, May.
    • Handle: RePEc:bla:kyklos:v:33:y:1980:i:2:p:308-327
    DOI: 10.1111/j.1467-6435.1980.tb02637.x
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    Cited by:

    1. Bas, Christian Le & Sierra, Christophe, 2002. "'Location versus home country advantages' in R&D activities: some further results on multinationals' locational strategies," Research Policy, Elsevier, vol. 31(4), pages 589-609, May.
    2. Marina Papanastassiou & Robert Pearce & Antonello Zanfei, 2020. "Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: A review of the literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 623-664, June.
    3. Patricia Laurens & Christian Le Bas & Antoine Schoen & Philippe Larédo, 2015. "Internationalisation of European MNCs R&D: " deglobalisation " and evolution of the locational strategies [Internationalisation de la recherche développement des FMN européennes : « déglo," Post-Print hal-01775107, HAL.
    4. Iwasa, Tomoko & Odagiri, Hiroyuki, 2004. "Overseas R&D, knowledge sourcing, and patenting: an empirical study of Japanese R&D investment in the US," Research Policy, Elsevier, vol. 33(5), pages 807-828, July.
    5. Odagiri, Hiroyuki & Yasuda, Hideto, 1996. "The determinants of overseas R&D by Japanese firms: an empirical study at the industry and company levels," Research Policy, Elsevier, vol. 25(7), pages 1059-1079, October.
    6. Dimitris Manolopoulos & Marina Papanastassiou & Robert Pearce, 2007. "Knowledge-related competitiveness and the roles of multinationals’ R&D in a peripheral European economy: Survey analysis of Greece," Management International Review, Springer, vol. 47(5), pages 661-682, September.
    7. Fragkiskos Filippaios & Marina Papanastassiou & Robert Pearce, 2003. "The evolution of US outward foreign direct investment in the pacific rim: a cross-time and country analysis," Applied Economics, Taylor & Francis Journals, vol. 35(16), pages 1779-1787.
    8. Jože P. Damijan & Sandra Damijan & Osiris Jorge Parcero, 2023. "Is There a Size Premium for Nations?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(4), pages 3974-4016, December.
    9. Virginie JACQUIER-ROUX & Christian LE BAS, 2008. "LOCALISATION DES ACTIVITeS DE R D DES FIRMES MULTINATIONALES, MODES D’ORGANISATION EN ReSEAUX ET TRANSFERT TRANSNATIONAL DES CONNAISSANCES : UN CADRE D’ANALYSE," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 28, pages 11-38.
    10. Kumar, Nagesh, 1996. "Intellectual property protection, market orientation and location of overseas R&D activities by multinational enterprises," World Development, Elsevier, vol. 24(4), pages 673-688, April.
    11. Belderbos, Rene, 2001. "Overseas innovations by Japanese firms: an analysis of patent and subsidiary data," Research Policy, Elsevier, vol. 30(2), pages 313-332, February.
    12. Zander, Ivo, 1999. "Whereto the multinational? The evolution of technological capabilities in the multinational network," International Business Review, Elsevier, vol. 8(3), pages 261-291, August.
    13. Belderbos, René & Leten, Bart & Suzuki, Shinya, 2023. "International R&D and MNCs' innovation performance: An integrated approach," Journal of International Management, Elsevier, vol. 29(6).
    14. Pearce, Robert D., 1999. "Decentralised R&D and strategic competitiveness: globalised approaches to generation and use of technology in multinational enterprises (MNEs)," Research Policy, Elsevier, vol. 28(2-3), pages 157-178, March.
    15. Niosi, Jorge & Godin, Benoit, 1999. "Canadian R&D abroad management practices," Research Policy, Elsevier, vol. 28(2-3), pages 215-230, March.
    16. René Belderbos & Boris Lokshin & Federico Michiel, 2021. "R&D and Foreign Subsidiary Performance at or Below the Technology Frontier," Management International Review, Springer, vol. 61(6), pages 745-767, December.
    17. Jingjing Li & Gang Liu & Zihan Ma, 2021. "RD internationalization, domestic technology alliance, and innovation in emerging market," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-35, June.
    18. Zander, Ivo, 1999. "How do you mean 'global'? An empirical investigation of innovation networks in the multinational corporation," Research Policy, Elsevier, vol. 28(2-3), pages 195-213, March.
    19. Jov{z}e P. Damijan & Sandra Damijan & Osiris Jorge Parcero, 2024. "Is there a size premium for nations?," Papers 2401.05116, arXiv.org.
    20. Fisch, Jan Hendrik, 2003. "Optimal dispersion of R&D activities in multinational corporations with a genetic algorithm," Research Policy, Elsevier, vol. 32(8), pages 1381-1396, September.

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