German Companies Do Less Research Abroad
AbstractGermany has profited from the internationalization of research and development (R&D) in multinational companies. While the international R&D balance sheet was balanced until 2001, foreign companies now invest more in R&D in Germany than German companies abroad. The share of R&D expenditures of German multinationals abroad is declining, whereas their global expenditures are increasing. This means the internationalization of R&D activities in Germany has slowed down. Strategic restructuring of multinational companies is the decisive factor for internationalizing R&D, not relocation. Against this background, current plans for tax relief for R&D will probably not lead to significant backshoring of foreign R&D activities to Germany.
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Bibliographic InfoArticle provided by DIW Berlin, German Institute for Economic Research in its journal Weekly Report.
Volume (Year): 6 (2010)
Issue (Month): 18 ()
Globalization; Research and development; Multinational companies; R&D tax credit;
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
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