Stayers and Movers: the determinants of post-16 educational choice^M

This paper using logistical regression investigates the possible interaction between different categories of R&D activities undertaken by the Japanese firms in the European Union. In particular, it aims to examine the significance of basic or knowledge augmenting research. Furthermore, it assesses whether the modes of ownership or the experience exert any influence on the research activities. A sample of 234 Japanese subsidiaries across the EU was used and these results seem to confirm that while experience has little effect on the research activities, there appears to be a high degree of negative interaction between basic and other types of research undertaken by these subsidiaries. The mode of ownership, whether a joint ventures with a local firm or a partnership with other Japanese firms negatively affected process technology and product development and its impact on other categories was not statistically significant. These results support the view that the Japanese firms having reached the international frontier in many areas of research have no longer the option to follow their Western rivals as they did before. To consolidate and improve their position, these firms have made a strategic decision to play a greater role in charting the future scientific technological directions through the priority that is being given to basic research.