IDEAS home Printed from https://ideas.repec.org/a/spr/qualqt/v57y2023i2d10.1007_s11135-022-01391-z.html
   My bibliography  Save this article

How does Internationalisation affect the productivity of R&D activities in large innovative firms? A conditional nonparametric investigation

Author

Listed:
  • Patricia Laurens

    (LISIS, Univ Gustave Eiffel, ESIEE Paris, CNRS, INRAE)

  • Pierluigi Toma

    (University of Salento)

  • Antoine Schoen

    (LISIS, Univ Gustave Eiffel, ESIEE Paris, CNRS, INRAE)

  • Cinzia Daraio

    (Sapienza University of Rome)

  • Philippe Larédo

    (LISIS, Univ Gustave Eiffel, ESIEE Paris, CNRS, INRAE
    University of Manchester, AMBS, Manchester Institute of innovation Research)

Abstract

This work explores the relationship between multinational R&D and innovation productivity among top corporate knowledge and R&D producers by adopting a twofold concept of internationalisation: (1) the firm’s degree of R&D internationalisation, and (2) the firm’s geographic diversification. We model the patent production process with an appropriate and robust conditional Data Envelopment Analysis (DEA) estimator, using a unique database of firms that matches financial indicators and patent information. Our results reinforce the fundamental role of internationalisation in the knowledge production process when the internationalisation process is properly and strategically managed. We interpret our empirical evidence through the theoretical lens of the learning theory of internationalisation, and we postulate that a high R&D intensity is a key driver to overcoming the challenges of internationalisation.

Suggested Citation

  • Patricia Laurens & Pierluigi Toma & Antoine Schoen & Cinzia Daraio & Philippe Larédo, 2023. "How does Internationalisation affect the productivity of R&D activities in large innovative firms? A conditional nonparametric investigation," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(2), pages 1079-1100, April.
    • Handle: RePEc:spr:qualqt:v:57:y:2023:i:2:d:10.1007_s11135-022-01391-z
    DOI: 10.1007/s11135-022-01391-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11135-022-01391-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11135-022-01391-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Walter Kuemmerle, 1999. "The Drivers of Foreign Direct Investment into Research and Development: An Empirical Investigation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(1), pages 1-24, March.
    2. Bădin, Luiza & Daraio, Cinzia & Simar, Léopold, 2012. "How to measure the impact of environmental factors in a nonparametric production model," European Journal of Operational Research, Elsevier, vol. 223(3), pages 818-833.
    3. Verbeke, Alain & Brugman, Paul, 2009. "Triple-testing the quality of multinationality-performance research: An internalization theory perspective," International Business Review, Elsevier, vol. 18(3), pages 265-275, June.
    4. John Van Reenen & Rupert Harrison & Rachel Griffith, 2006. "How Special Is the Special Relationship? Using the Impact of U.S. R&D Spillovers on U.K. Firms as a Test of Technology Sourcing," American Economic Review, American Economic Association, vol. 96(5), pages 1859-1875, December.
    5. Bădin, Luiza & Daraio, Cinzia & Simar, Léopold, 2019. "A bootstrap approach for bandwidth selection in estimating conditional efficiency measures," European Journal of Operational Research, Elsevier, vol. 277(2), pages 784-797.
    6. Crescenzi, Riccardo & Gagliardi, Luisa, 2018. "The innovative performance of firms in heterogeneous environments: The interplay between external knowledge and internal absorptive capacities," Research Policy, Elsevier, vol. 47(4), pages 782-795.
    7. Cinzia Daraio & Léopold Simar, 2005. "Introducing Environmental Variables in Nonparametric Frontier Models: a Probabilistic Approach," Journal of Productivity Analysis, Springer, vol. 24(1), pages 93-121, September.
    8. Kafouros, Marios & Love, James H & Ganotakis, Panagiotis & Konara, Palitha, 2020. "Experience in R&D collaborations, innovative performance and the moderating effect of different dimensions of absorptive capacity," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    9. Beugelsdijk, Sjoerd & Jindra, Björn, 2018. "Product innovation and decision-making autonomy in subsidiaries of multinational companies," Journal of World Business, Elsevier, vol. 53(4), pages 529-539.
    10. Snehal Awate & Ram Mudambi, 2018. "On the geography of emerging industry technological networks: the breadth and depth of patented innovations," Journal of Economic Geography, Oxford University Press, vol. 18(2), pages 391-419.
    11. Deepa Mani & Kannan Srikanth & Anandhi Bharadwaj, 2014. "Efficacy of R&D Work in Offshore Captive Centers: An Empirical Study of Task Characteristics, Coordination Mechanisms, and Performance," Information Systems Research, INFORMS, vol. 25(4), pages 846-864, December.
    12. Robert Pearce & Marina Papanastassiou, 2009. "Subsidiaries, Innovation and the Strategic Development of Multinationals," Palgrave Macmillan Books, in: The Strategic Development of Multinationals, chapter 1, pages 1-20, Palgrave Macmillan.
    13. Alonso-Martínez, Daniel, 2018. "Social progress and international patent collaboration," Technological Forecasting and Social Change, Elsevier, vol. 134(C), pages 169-177.
    14. Dietmar Harhoff & Elisabeth Mueller & John Van Reenen, 2014. "What are the Channels for Technology Sourcing? Panel Data Evidence from German Companies," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 23(1), pages 204-224, March.
    15. Marina Papanastassiou & Robert Pearce, 2009. "The Strategic Development of Multinationals," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-25048-2, December.
    16. Steinberg, Philip J. & Procher, Vivien D. & Urbig, Diemo, 2017. "Too much or too little of R&D offshoring: The impact of captive offshoring and contract offshoring on innovation performance," Research Policy, Elsevier, vol. 46(10), pages 1810-1823.
    17. Bernhard Dachs & Andreas Pyka, 2010. "What drives the internationalisation of innovation? Evidence from European patent data," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 19(1), pages 71-86.
    18. Masaaki Kotabe & Srini S Srinivasan & Preet S Aulakh, 2002. "Multinationality and Firm Performance: The Moderating Role of R&D and Marketing Capabilities," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(1), pages 79-97, March.
    19. Mol, Michael J. & Pauwels, Pieter & Matthyssens, Paul & Quintens, Lieven, 2004. "A technological contingency perspective on the depth and scope of international outsourcing," Journal of International Management, Elsevier, vol. 10(2), pages 287-305.
    20. Picci, Lucio, 2010. "The internationalization of inventive activity: A gravity model using patent data," Research Policy, Elsevier, vol. 39(8), pages 1070-1081, October.
    21. Ambos, Bjorn, 2005. "Foreign direct investment in industrial research and development: A study of German MNCs," Research Policy, Elsevier, vol. 34(4), pages 395-410, May.
    22. Añón Higón, Dolores & Manjón Antolín, Miguel, 2012. "Multinationality, foreignness and institutional distance in the relation between R&D and productivity," Research Policy, Elsevier, vol. 41(3), pages 592-601.
    23. Petros Gkotsis & Antonio Vezzani, 2019. "Heterogeneity of technology-specific R&D investments. Evidence from top R&D investors worldwide," JRC Working Papers on Corporate R&D and Innovation 2018-04, Joint Research Centre.
    24. Paola Criscuolo & Rajneesh Narula & Bart Verspagen, 2005. "Role of home and host country innovation systems in r&d internationalisation: a patent citation analysis," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(5), pages 417-433.
    25. Kenneth G Huang & Jiatao Li, 2019. "Adopting knowledge from reverse innovations? Transnational patents and signaling from an emerging economy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(7), pages 1078-1102, September.
    26. ., 2008. "The Role of the Internet in Explaining Innovation Performance," Chapters, in: Industrial Innovation and Firm Performance, chapter 11, pages 190-205, Edward Elgar Publishing.
    27. Ron Boschma, 2005. "Editorial: Role of Proximity in Interaction and Performance: Conceptual and Empirical Challenges," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 41-45.
    28. repec:bla:jomstd:v:47:y:2010:i:s2:p:1417-1433 is not listed on IDEAS
    29. Cazals, Catherine & Florens, Jean-Pierre & Simar, Leopold, 2002. "Nonparametric frontier estimation: a robust approach," Journal of Econometrics, Elsevier, vol. 106(1), pages 1-25, January.
    30. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Patricia Laurens & Pierluigi Toma & Antoine Schoen & Cinzia Daraio & Philippe Larédo, 2022. "How does Internationalisation affect the productivity of R&D activities in large innovative firms? A conditional nonparametric investigation," Post-Print hal-03840316, HAL.
    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. Andrea Coveri & Antonello Zanfei, 2023. "Who wins the race for knowledge-based competitiveness? Comparing European and North American FDI patterns," The Journal of Technology Transfer, Springer, vol. 48(1), pages 292-330, February.
    4. Camilla Mastromarco & Léopold Simar, 2021. "Latent heterogeneity to evaluate the effect of human capital on world technology frontier," Journal of Productivity Analysis, Springer, vol. 55(2), pages 71-89, April.
    5. Daraio, Cinzia & Simar, Leopold & Wilson, Paul, 2019. "Quality and its impact on efficiency," LIDAM Discussion Papers ISBA 2019004, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
    6. René Belderbos & Bart Leten & Shinya Suzuki, 2017. "Scientific research, firm heterogeneity, and foreign R&D locations of multinational firms," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 26(3), pages 691-711, September.
    7. Vrontis, Demetris & Christofi, Michael, 2021. "R&D internationalization and innovation: A systematic review, integrative framework and future research directions," Journal of Business Research, Elsevier, vol. 128(C), pages 812-823.
    8. Jose M. Cordero & Cristina Polo & Nickolaos G. Tzeremes, 2020. "Evaluating the efficiency of municipalities in the presence of unobserved heterogeneity," Journal of Productivity Analysis, Springer, vol. 53(3), pages 377-390, June.
    9. Castellani, Davide & Pieri, Fabio, 2013. "R&D offshoring and the productivity growth of European regions," Research Policy, Elsevier, vol. 42(9), pages 1581-1594.
    10. Guangshun Qiao & Zhan-ao Wang, 2021. "Vertical integration vs. specialization: a nonparametric conditional efficiency estimate for the global semiconductor industry," Journal of Productivity Analysis, Springer, vol. 56(2), pages 139-150, December.
    11. Dachs, Bernhard, 2017. "Internationalisation of R&D: A Review of Drivers, Impacts, and new Lines of Research," MPRA Paper 83367, University Library of Munich, Germany.
    12. Sushanta Mallick & Aarti Rughoo & Nickolaos G. Tzeremes & Wei Xu, 2020. "Technological Change and Catching-Up in the Indian Banking Sector: A Time-Dependent Nonparametric Frontier Approach," Computational Economics, Springer;Society for Computational Economics, vol. 56(1), pages 217-237, June.
    13. Cordero, Jose Manuel & Polo, Cristina & Simancas, Rosa, 2022. "Assessing the efficiency of secondary schools: Evidence from OECD countries participating in PISA 2015," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    14. Julian Ramajo & Miguel A. Marquez & Geoffrey J. D. Hewings, 2021. "Addressing spatial dependence in technical efficiency estimation: A Spatial DEA frontier approach," Papers 2103.14063, arXiv.org.
    15. Mastromarco, Camilla & Simar, Léopold & Van Keilegom, Ingrid, 2022. "Estimating Nonparametric Conditional Frontiers and Efficiencies: A New Approach," LIDAM Discussion Papers ISBA 2022035, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
    16. Michael L. Polemis & Thanasis Stengos & Nickolaos G. Tzeremes, 2020. "Modeling the effect of competition on US manufacturing sectors’ efficiency: an order-m frontier analysis," Journal of Productivity Analysis, Springer, vol. 54(1), pages 27-41, August.
    17. Daraio, Cinzia & Simar, Léopold & Wilson, Paul W., 2021. "Quality as a latent heterogeneity factor in the efficiency of universities," Economic Modelling, Elsevier, vol. 99(C).
    18. Nickolaos G. Tzeremes, 2019. "Technological change, technological catch-up and export orientation: evidence from Latin American Countries," Journal of Productivity Analysis, Springer, vol. 52(1), pages 85-100, December.
    19. Yunguo Lu & Lin Zhang, 2023. "Environmental information disclosure and firm production: evidence from the estimated efficiency of publicly listed firms in China," Journal of Productivity Analysis, Springer, vol. 59(1), pages 99-119, February.
    20. Thomson, Russell, 2013. "National scientific capacity and R&D offshoring," Research Policy, Elsevier, vol. 42(2), pages 517-528.

    More about this item

    Keywords

    R&D productivity; Multinationality; Conditional efficiency; Patents; DEA modelling;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:qualqt:v:57:y:2023:i:2:d:10.1007_s11135-022-01391-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.