IDEAS home Printed from https://ideas.repec.org/p/hhs/iuiwop/0458.html
   My bibliography  Save this paper

Overseas R&D by Multinationals in Foreign Centers of Excellence

Author

Listed:
  • Fors, Gunnar

    (Research Institute of Industrial Economics (IFN))

  • Zejan, Mario

    (Stockholm School of Economics)

Abstract

This paper examines the determinants of overseas R&D by Swedish multinationals. Our empirical results indicate that the location of R&D abroad to a large extent is motivated by the need to adapt products and processes to conditions in the foreign markets where the firms operate. However, we also find that the MNEs tend to locate their R&D in host countries which are relatively specialized technologically in the firms' own areas. This finding may suggest that one additional motive to locating R&D abroad is to gain access to knowledge in foreign "centers of excellence" and benefit from localized spillovers.

Suggested Citation

  • Fors, Gunnar & Zejan, Mario, 2012. "Overseas R&D by Multinationals in Foreign Centers of Excellence," Working Paper Series 458, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0458
    as

    Download full text from publisher

    File URL: https://www.ifn.se/wfiles/wp/wp458.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kogut, Bruce & Chang, Sea Jin, 1991. "Technological Capabilities and Japanese Foreign Direct Investment in the United States," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 401-413, August.
    2. Hakanson, Lars & Nobel, Robert, 1993. "Foreign research and development in Swedish multinationals," Research Policy, Elsevier, vol. 22(5-6), pages 373-396, November.
    3. Fors, Gunnar & Svensson, Roger, 1994. "R&D in Swedish Multinational Corporations," Working Paper Series 406, Research Institute of Industrial Economics.
    4. Robert C Ronstadt, 1978. "International R & D: The Establishment and Evolution of Research and Development Abroad by Seven U.S. Multinationals," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 9(1), pages 7-24, March.
    5. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    6. repec:bla:scandj:v:94:y:1992:i:0:p:s29-47 is not listed on IDEAS
    7. Richard C. Levin & Alvin K. Klevorick & Richard R. Nelson & Sidney G. Winter, 1987. "Appropriating the Returns from Industrial Research and Development," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(3, Specia), pages 783-832.
    8. Head, Keith & Ries, John & Swenson, Deborah, 1995. "Agglomeration benefits and location choice: Evidence from Japanese manufacturing investments in the United States," Journal of International Economics, Elsevier, vol. 38(3-4), pages 223-247, May.
    9. Jaffe, Adam B, 1986. "Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value," American Economic Review, American Economic Association, vol. 76(5), pages 984-1001, December.
    10. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-640, June.
    11. Hirschey, Robert C & Caves, Richard E, 1981. "Research and Transfer of Technology by Multinational Enterprises," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 43(2), pages 115-130, May.
    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. Fors, Gunnar & Zejan, Mario, 1996. "Overseas R&D by Multinationals in foreign Centers of Excellence," SSE/EFI Working Paper Series in Economics and Finance 111, Stockholm School of Economics.
    2. Blomkvist, Katarina & Kappen, Philip & Zander, Ivo, 2014. "Superstar inventors—Towards a people-centric perspective on the geography of technological renewal in the multinational corporation," Research Policy, Elsevier, vol. 43(4), pages 669-682.
    3. Schmiele, Anja, 2009. "Drivers for international innovation activities in developed and emerging countries," ZEW Discussion Papers 09-064, ZEW - Leibniz Centre for European Economic Research.
    4. Iwasa, Tomoko & Odagiri, Hiroyuki, 2004. "Overseas R&D, knowledge sourcing, and patenting: an empirical study of Japanese R&D investment in the US," Research Policy, Elsevier, vol. 33(5), pages 807-828, July.
    5. Cristiano Antonelli & Pier Paolo Patrucco & Francesco Quatraro, 2011. "Productivity Growth and Pecuniary Knowledge Externalities: An Empirical Analysis of Agglomeration Economies in European Regions," Economic Geography, Taylor & Francis Journals, vol. 87(1), pages 23-50, January.
    6. Amelia U. Santos-Paulino & Mariagrazia Squicciarini & Peilei Fan, 2008. "R&D (Re)location: A Bird's Eye (Re)view," WIDER Working Paper Series RP2008-100, World Institute for Development Economic Research (UNU-WIDER).
    7. Anja Schmiele, 2012. "Drivers for international innovation activities in developed and emerging countries," The Journal of Technology Transfer, Springer, vol. 37(1), pages 98-123, February.
    8. 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.
    9. Schmiele, Anja, 2013. "Intellectual property infringements due to R&D abroad? A comparative analysis between firms with international and domestic innovation activities," Research Policy, Elsevier, vol. 42(8), pages 1482-1495.
    10. Kleoniki Kalapouti & Nikos Varsakelis, 2015. "Intra and inter: regional knowledge spillovers in European Union," The Journal of Technology Transfer, Springer, vol. 40(5), pages 760-781, October.
    11. Stéphane Lhuillery, 2005. "Organisation and location of academic sourcing at the firm level," CEMI Working Papers cemi-report-2005-001, Ecole Polytechnique Fédérale de Lausanne, Collège du Management de la Technologie, Management of Technology and Entrepreneurship Institute, Chaire en Economie et Management de l'Innovation.
    12. Chang-Yang Lee & Ji-Hwan Lee & Ajai S. Gaur, 2017. "Are large business groups conducive to industry innovation? The moderating role of technological appropriability," Asia Pacific Journal of Management, Springer, vol. 34(2), pages 313-337, June.
    13. Grunfeld, Leo A., 2003. "Meet me halfway but don't rush: absorptive capacity and strategic R&D investment revisited," International Journal of Industrial Organization, Elsevier, vol. 21(8), pages 1091-1109, October.
    14. Battke, Benedikt & Schmidt, Tobias S. & Stollenwerk, Stephan & Hoffmann, Volker H., 2016. "Internal or external spillovers—Which kind of knowledge is more likely to flow within or across technologies," Research Policy, Elsevier, vol. 45(1), pages 27-41.
    15. Rajneesh Narula & Grazia D. Santangelo, 2007. "Location and R&D Alliances in the European ICT Industry," DRUID Working Papers 07-05, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    16. Per Botolf Maurseth, 2005. "Lovely but dangerous: The impact of patent citations on patent renewal," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(5), pages 351-374.
    17. Michele Cincera, 2005. "Firms' productivity growth and R&D spillovers: An analysis of alternative technological proximity measures," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(8), pages 657-682.
    18. Karine Pellier, 2007. "Convergence, Patenting Activity and Geographic Spillovers: A Spatial Econometric Analysis for European Regions," Working Papers 07-14, LAMETA, Universtiy of Montpellier, revised Dec 2007.
    19. Becker Wolfgang & Peters Jürgen, 2005. "Innovation Effects of Science-Related Technological Opportunities / Innovationseffekte von technologischen Möglichkeiten aus dem Wissenschaftsbereich: Theoretical Considerations and Empirical Findings," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 225(2), pages 130-150, April.
    20. Mário A.P.M. Da Silva, 2018. "R&D Investments And Spillovers Under Endogenous Absorptive Capacity: Competitive R&D Cannot Take Full-Advantage Of Complementarity In Absorptive Capacity While Cooperative R&D Can," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 6(1), pages 16-24.

    More about this item

    Keywords

    Overseas R&D; Technology Sourcing; Multinationals;
    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:hhs:iuiwop:0458. 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: Elisabeth Gustafsson (email available below). General contact details of provider: https://edirc.repec.org/data/iuiiise.html .

    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.