Innovative strategic groups in multinational industries
AbstractDifferences in innovative strategies between groups of domestic and multinational enterprises are analyzed within a two stage game model, that incorporates the asymmetries in transaction costs between the two species of enterprises. Nash and cooperative behaviour is shown to result in different equilibrium R&D strategies, with the multinational companies doing typically more R&D for larger markets and domestic companies focusing on specific market segments. Survey data from companies operating in eleven high-tech multinational industries in Belgium provide support for these strategic differences and show how they are related to company performance.
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Bibliographic InfoArticle provided by Elsevier in its journal European Economic Review.
Volume (Year): 32 (1988)
Issue (Month): 4 (April)
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Web page: http://www.elsevier.com/locate/eer
Other versions of this item:
- De Bondt, Raymond & Sleuwaegen, Leo & Veugelers, Reinhilde, 1988. "Innovative strategic groups in multinational industries," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/101586, Katholieke Universiteit Leuven.
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- Aerts, Kris, 2008. "R&D subsidies and foreign ownership: Carrying Flemish coals to Newcastle?," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/197558, Katholieke Universiteit Leuven.
- Leo A. Grünfeld, 2001. "Technology Spillovers: A Motive for Foreign Direct Investment?," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 27, pages 97-120.
- De Bondt, Raymond, 1997. "Spillovers and innovative activities," International Journal of Industrial Organization, Elsevier, vol. 15(1), pages 1-28, February.
- Maria Petit & Francesca Sanna-Randaccio, 1998. "Technological innovation and multinational expansion: A two-way link?," Journal of Economics, Springer, vol. 68(1), pages 1-26, February.
- Day, Diana L. & Lewin, Arie Y. & Li, Hongyu, 1995. "Strategic leaders or strategic groups: A longitudinal data envelopment analysis of the U.S. brewing industry," European Journal of Operational Research, Elsevier, vol. 80(3), pages 619-638, February.
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