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Intra-firm technology transfer and R&D in foreign affiliates: Substitutes or complements? Evidence from Japanese multinational firms

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Author Info
Belderbos, Rene
Ito, Banri
Wakasugi, Ryuhei

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Abstract

R&D in foreign affiliates and technology transferred from their parent firms are important potential drivers of productivity in host countries. In this paper we examine the simultaneous impact of local R&D and intra-firm international technology transfer on productivity growth in foreign affiliates. We estimate a dynamic productivity model on a large sample of Japanese manufacturing affiliates worldwide in 1996-1997 and 1999-2000. We find that both affiliate R&D and intra-firm technology transfer contribute to productivity growth, while technology transfer exhibits decreasing marginal returns. The two sources of technology are complements: use of one source of technology increases the marginal impact of the other. J. Japanese Int. Economies 22 (3) (2008) 310-319.

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Publisher Info
Article provided by Elsevier in its journal Journal of the Japanese and International Economies.

Volume (Year): 22 (2008)
Issue (Month): 3 (September)
Pages: 310-319
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Handle: RePEc:eee:jjieco:v:22:y:2008:i:3:p:310-319

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Web page: http://www.elsevier.com/locate/inca/622903

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  1. Lokshin, Boris & Belderbos, René & Carree, Martin, 2007. "The Productivity Effects of Internal and External R&D: Evidence From a Dynamic Panel Data Model," UNU-MERIT Working Paper Series 026, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
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  2. Braga, Helson & Willmore, Larry, 1991. "Technological Imports and Technological Effort: An Analysis of Their Determinants in Brazilian Firms," Journal of Industrial Economics, Blackwell Publishing, vol. 39(4), pages 421-32, June. [Downloadable!] (restricted)
  3. Smith, Pamela J., 2001. "How do foreign patent rights affect U.S. exports, affiliate sales, and licenses?," Journal of International Economics, Elsevier, vol. 55(2), pages 411-439, December. [Downloadable!] (restricted)
  4. Belderbos, Rene, 2001. "Overseas innovations by Japanese firms: an analysis of patent and subsidiary data," Research Policy, Elsevier, vol. 30(2), pages 313-332, February. [Downloadable!] (restricted)
  5. Deolalikar, Anil B & Evenson, Robert E, 1989. "Technology Production and Technology Purchase in Indian Industry: An Econometric Analysis," The Review of Economics and Statistics, MIT Press, vol. 71(4), pages 689-92, November.
  6. Charles I. Jones, 2002. "Sources of U.S. Economic Growth in a World of Ideas," American Economic Review, American Economic Association, vol. 92(1), pages 220-239, March. [Downloadable!]
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  7. Yang, Guifang & Maskus, Keith E., 2001. "Intellectual property rights, licensing, and innovation in an endogenous product-cycle model," Journal of International Economics, Elsevier, vol. 53(1), pages 169-187, February. [Downloadable!] (restricted)
  8. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-28, June. [Downloadable!] (restricted)
  9. Richard Blundell & Stephen Bond, 2000. "GMM Estimation with persistent panel data: an application to production functions," Econometric Reviews, Taylor and Francis Journals, vol. 19(3), pages 321-340. [Downloadable!] (restricted)
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  10. Smarzynska Javorcik, Beata, 2004. "The composition of foreign direct investment and protection of intellectual property rights: Evidence from transition economies," European Economic Review, Elsevier, vol. 48(1), pages 39-62, February. [Downloadable!] (restricted)
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  11. Tor Jakob Klette and Frode Johansen, 1996. "Accumulation of R&D Capital and Dynamic Firm Performance: A Not-so-fixed Effect Model," Discussion Papers 184, Research Department of Statistics Norway.
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  12. von Zedtwitz, Maximilian & Gassmann, Oliver, 2002. "Market versus technology drive in R&D internationalization: four different patterns of managing research and development," Research Policy, Elsevier, vol. 31(4), pages 569-588, May. [Downloadable!] (restricted)
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