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The impact of R&D on value added for domestic and foreign firms in a newly industrialized economy

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  • Tsang, Eric W.K.
  • Yip, Paul S.L.
  • Toh, Mun Heng

Abstract

This study compares the impact of R&D on value added between domestic and foreign firms in Singapore. The analysis is based on a comprehensive panel database from 1993 to 1999 provided by the Singapore Government. Our results found that R&D investments of foreign firms generated higher value added than those of domestic firms, and that the difference in value added contributed by R&D was moderated by the type of R&D and the technological level of industry. The study supports the argument that the ownership advantages possessed by foreign firms, relative to domestic firms, have positive effects on R&D performance.

Suggested Citation

  • Tsang, Eric W.K. & Yip, Paul S.L. & Toh, Mun Heng, 2008. "The impact of R&D on value added for domestic and foreign firms in a newly industrialized economy," International Business Review, Elsevier, vol. 17(4), pages 423-441, August.
    • Handle: RePEc:eee:iburev:v:17:y:2008:i:4:p:423-441
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