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Companies with R&D Abroad Make Germany a Strong Research Location

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  • Heike Belitz

Abstract

In recent years, German companies have invested more in research and development (R&D) abroad. After a prolonged plateau period, the proportion of investment abroad rose to around 35 percent; concurrently R&D expenditure in Germany has continued to rise sharply. Growth abroad did not occur at the expense of domestic research. Foreign companies in Germany have also invested more in R&D recently but have not yet topped the 2011 record high. Measured by stocks of foreign direct investment, they should still have some potential for higher expenditure in R&D. In international comparison, the growth in private R&D investment in Germany in recent years was high. This was mainly driven by German companies with R&D abroad.

Suggested Citation

  • Heike Belitz, 2017. "Companies with R&D Abroad Make Germany a Strong Research Location," DIW Economic Bulletin, DIW Berlin, German Institute for Economic Research, vol. 7(46/47), pages 477-487.
    • Handle: RePEc:diw:diwdeb:2017-46-2
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    More about this item

    Keywords

    Research and development; globalisation; multinational companies;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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