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Global knowledge flow and Japanese multinational firms’ offshore R&D allocation and innovation

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  • Ito, Keiko
  • Ikeuchi, Kenta
  • Daiko, Taro

Abstract

This paper examines whether allocating more research and development (R&D) activities to a country-industry pair with a higher intensity of knowledge flows improves the innovation performance of multinational enterprises (MNEs). We use firm-patent-matched data for Japanese manufacturing MNEs, including data on MNEs’ offshore R&D expenditure and information on patents filed by both parent firms and overseas affiliates. Moreover, as a proxy for the intensity of knowledge flows, we use the eigenvector centrality of each country-industry pair in the global knowledge flow network, utilizing patent citation information.

Suggested Citation

  • Ito, Keiko & Ikeuchi, Kenta & Daiko, Taro, 2021. "Global knowledge flow and Japanese multinational firms’ offshore R&D allocation and innovation," Japan and the World Economy, Elsevier, vol. 59(C).
    • Handle: RePEc:eee:japwor:v:59:y:2021:i:c:s0922142521000372
    DOI: 10.1016/j.japwor.2021.101090
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    References listed on IDEAS

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    Cited by:

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    2. Kawasaki, Kentaro & Sato, Kiyotaka, 2021. "A new assessment of economic integration in East Asia: Application of an industry-specific G-PPP model," Japan and the World Economy, Elsevier, vol. 60(C).

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    More about this item

    Keywords

    Multinational enterprises; Offshore R&D; Patent; Innovation; Knowledge flow network; Eigenvector centrality;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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