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Technology and Foreign Direct Investment in Ireland

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  • Aidan Meyler

Abstract

Two routes by which foreign multinational enterprises (MNEs) may transfer technology - direct R&D undertaken in Ireland or through the transfer of the fruits of R&D work undertaken by the parent firm - are examined. Direct R&D undertaken by MNEs in Ireland now accounts for two-thirds of all R&D in Ireland but does not appear to differ significantly, in terms of application or orientation, from the R&D work undertaken by Irish-owned industry. Using US tax rules on the allocation of parent firm R&D expenditures between the parent firm and the host firm, technology transfer from US parent firms is estimated. It is found that incorporating technology transfer from parent firms doubles the level of R&D expenditure attributable to US firms for use in Ireland.

Suggested Citation

  • Aidan Meyler, 1998. "Technology and Foreign Direct Investment in Ireland," Economics Technical Papers 9810, Trinity College Dublin, Department of Economics.
    • Handle: RePEc:tcd:tcduet:9810
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    References listed on IDEAS

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    1. Ignatius Horstmann & James R. Markusen, 1987. "Licensing versus Direct Investment: A Model of Internalization by the Multinational Enterprise," Canadian Journal of Economics, Canadian Economics Association, vol. 20(3), pages 464-481, August.
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    Cited by:

    1. Slevin, Geraldine, 2001. "Potential Output and the Output Gap in Ireland," Research Technical Papers 5/RT/01, Central Bank of Ireland.
    2. Mary O'Sullivan, 2000. "The sustainability of industrial development in Ireland," Regional Studies, Taylor & Francis Journals, vol. 34(3), pages 277-290.

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    More about this item

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other

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