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Fundamental R&D spillovers and the internationalization of a firm's research activities

Author

Listed:
  • Bernard Franck

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • R. Owen

Abstract

A conceptual framework is proposed for analyzing how differences in national R&D stocks can impact on a firmÌs decision to internationalize its R&D activities. A central finding is that the integration of product markets can generate an added incentive to undertake R&D abroad. A three-stage analysis of a non-cooperative game is proposed, which entails cost-reducing process innovation in an international model of duopoly. Each firmÌs technological efficiency depends not only on its investment in applied R&D, but also on its absorption of domestic and foreign fundamental R&D, as well as the extent to which the latter are substitutes or complements. In a first stage, a firmÌs absorption of foreign fundamental R&D can be impacted by a decision to localize R&D activities abroad. The interrelation between this decision and initial production costs is also explored.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Bernard Franck & R. Owen, 2003. "Fundamental R&D spillovers and the internationalization of a firm's research activities," Post-Print halshs-00071289, HAL.
    • Handle: RePEc:hal:journl:halshs-00071289
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    Cited by:

    1. Bernard Franck & Robert Frank Owen, 2004. "L'internationalisation de la recherche fondamentale d'une firme," Revue d'économie politique, Dalloz, vol. 114(3), pages 353-370.
    2. René Belderbos, 2006. "R&D Activities in East Asia by Japanese, European, and US Multinationals," Microeconomics Working Papers 21887, East Asian Bureau of Economic Research.
    3. René Belderbos & Elissavet Lykogianni & Reinhilde Veugelers, 2008. "Strategic R&D Location by Multinational Firms: Spillovers, Technology Sourcing, and Competition," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 17(3), pages 759-779, September.
    4. René Belderbos & Elissavet Lykogianni & Reinhilde Veugelers, 2008. "Strategic R&D Location in European Manufacturing Industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(2), pages 183-206, July.
    5. Laurens, Patricia & Le Bas, Christian & Schoen, Antoine & Villard, Lionel & Larédo, Philippe, 2015. "The rate and motives of the internationalisation of large firm R&D (1994–2005): Towards a turning point?," Research Policy, Elsevier, vol. 44(3), pages 765-776.
    6. Long Gen Ying, 2008. "The Shape of Ideas Production Function in Transition and Developing Economies: Evidence from China," International Regional Science Review, , vol. 31(2), pages 185-206, April.

    More about this item

    Keywords

    fundamental R&D; spillover; firm; research activity; internationalization;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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