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Scientific research, firm heterogeneity and foreign R&D locations of multinational firms

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  • Rene Belderbos
  • Bart Leten
  • Shinya Suzuki

Abstract

We examine the influence of host countries’ scientific research strengths on global R&D location choices by multinational firms. In an analysis of 277 new R&D activities identified for 175 firms in 40 host countries and 30 technology fields, we find that the strength of relevant university research positively affects the likelihood that host countries attract foreign R&D. When allowing for firm heterogeneity, university scientific research appears only a significant factor for firms with a strong science orientation in their R&D activities. Host countries’ corporate scientific research has no systematic influence on R&D location choices. Empirical results are replicated in an analysis at the regional level covering regions in Europe the US, and Japan.

Suggested Citation

  • Rene Belderbos & Bart Leten & Shinya Suzuki, 2016. "Scientific research, firm heterogeneity and foreign R&D locations of multinational firms," Working Papers of Department of Management, Strategy and Innovation, Leuven 562201, KU Leuven, Faculty of Economics and Business (FEB), Department of Management, Strategy and Innovation, Leuven.
    • Handle: RePEc:ete:msiper:562201
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