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L'internationalisation de la recherche fondamentale d'une firme

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  • Bernard Franck
  • Robert Frank Owen

Abstract

In this paper we examine how a gap between levels of scientific knowledge in two countries affects the location of a firm?s fundamental R?D activities. When based in a less advanced country, a firm may decide to set up a research laboratory abroad in order to enrich the basic knowledge stock that it can secure. The duopolist thereby becomes more efficient and competitive relative to another firm, which it faces in the target foreign country. The R?D location decision is understood to be the first-stage of a three-stage game, in which both firms undertake upstream efforts in innovation, while also competing downstream in a single product market. This framework offers a paradigm for analyzing how international economic integration can impact the choice of locating R?D activities abroad. Conditions are identified under which integration may generate an incentive to internationalize R?D, while associated welfare implications are also considered.

Suggested Citation

  • Bernard Franck & Robert Frank Owen, 2004. "L'internationalisation de la recherche fondamentale d'une firme," Revue d'économie politique, Dalloz, vol. 114(3), pages 353-370.
    • Handle: RePEc:cai:repdal:redp_143_0353
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    References listed on IDEAS

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    5. Jan Fagerberg & Pär Hansson & Lars Lundberg & Arne Melchoir (ed.), 1997. "Technology and International Trade," Books, Edward Elgar Publishing, number 1192.
    6. Veugelers, Reinhilde & Sanna-Randaccio, Francesca, 2002. "Multinational Knowledge Spillovers with Centralized versus Decentralized R&D: A Game Theoretic Approach," CEPR Discussion Papers 3151, C.E.P.R. Discussion Papers.
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