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Overseas R&D Activities by Japanese Multinational Enterprises: Causes, Impacts and Interaction with Parent Firms

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  • TODO Yasuyuki
  • SHIMIZUTANI Satoshi

Abstract

This paper investigates determinants and impacts of R&D activities in overseas subsidiaries, using .rm-level panel data for Japanese multinational enterprises. We distinguish between overseas innovative and adaptive R&D according to survey responses and .nd substantial di.erences between the two types of R&D. Most importantly, evidence suggests that overseas innovative R&D targets the exploitation of foreign advanced knowledge, successfully takes it to parent .rms, and raises home productivity. By contrast, the primary role of overseas adaptive R&D is to contribute to productivity in the host country with the use of knowledge of parent .rms. In addition, we .nd no complementarity between home and overseas innovative R&D, i.e., no evidence that overseas innovative R&D raises the marginal e.ect of home R&D on home productivity.

Suggested Citation

  • TODO Yasuyuki & SHIMIZUTANI Satoshi, 2005. "Overseas R&D Activities by Japanese Multinational Enterprises: Causes, Impacts and Interaction with Parent Firms," ESRI Discussion paper series 132, Economic and Social Research Institute (ESRI).
    • Handle: RePEc:esj:esridp:132
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    Cited by:

    1. Yasuyuki Todo & Satoshi Shimizutani, 2008. "Overseas R&D Activities And Home Productivity Growth: Evidence From Japanese Firm‐Level Data," Journal of Industrial Economics, Wiley Blackwell, vol. 56(4), pages 752-777, December.
    2. Belderbos, Rene & Ito, Banri & Wakasugi, Ryuhei, 2008. "Intra-firm technology transfer and R&D in foreign affiliates: Substitutes or complements? Evidence from Japanese multinational firms," Journal of the Japanese and International Economies, Elsevier, vol. 22(3), pages 310-319, September.
    3. René Belderbos & Leo Sleuwaegen & Reinhilde Veugelers, 2010. "Market Integration and Technological Leadership in Europe," European Economy - Economic Papers 2008 - 2015 403, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.

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    More about this item

    Keywords

    overseas R&D activities; multinational enterprises; total factor productivity. JEL classifications: F23; O30.;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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