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What determines overseas R&D activities? The case of Japanese multinational firms

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  • Shimizutani, Satoshi
  • Todo, Yasuyuki

Abstract

This paper explores what factors determine the nature, extent, and location of Japanese multinationals' R&D activities abroad. Taking advantage of a rich micro-level dataset from the survey on Japanese overseas subsidiaries, the study distinguishes between two types of overseas R&D: basic/applied research and development/design. We find several differences between the determinants of those R&D activities. These differences confirm the view that basic/applied research of overseas subsidiaries aims at the exploitation of foreign advanced knowledge, whereas their development/design activities are mostly influenced by the market size of the host country. Our results provide a convincing and comprehensive explanation of the geographical distribution of overseas R&D by Japanese MNEs.

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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 37 (2008)
Issue (Month): 3 (April)
Pages: 530-544

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Handle: RePEc:eee:respol:v:37:y:2008:i:3:p:530-544

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Citations

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Cited by:
  1. Virginie JACQUIER-ROUX & Christian LE BAS, 2008. "Localisation Des Activités De R&D Des Firmes Multinationales, Modes D’Organisation En Réseaux Et Transfert Transnational Des Connaissances : Un Cadre D’Analyse," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 28, pages 11-38.
  2. Yamashita, Nobuaki & Fukao, Kyoji, 2010. "Expansion abroad and jobs at home: Evidence from Japanese multinational enterprises," Japan and the World Economy, Elsevier, vol. 22(2), pages 88-97, March.
  3. SUZUKI Shinya & Rene BELDERBOS & KWON Hyeog Ug & FUKAO Kyoji, 2012. "The Impact of Host Countries' University Research and University-Industry Collaboration on the Location of Research and Development: Evidence from Japanese multinational firms," Discussion papers 12080, Research Institute of Economy, Trade and Industry (RIETI).
  4. Belderbos, Rene & Leten, Bart & Suzuki, Shinya, 2009. "Does Excellence in Academic Research Attract Foreign R&D?," MERIT Working Papers 066, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  5. Shimizu, Takashi & Park, Youngwon & Choi, SukBong, 2014. "Project managers and risk management: A comparative study between Japanese and Korean firms," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 437-447.
  6. Hall, Bronwyn H., 2011. "The internationalization of R&D," MERIT Working Papers 049, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  7. TODO Yasuyuki & SHIMIZUTANI Satoshi, 2007. "Overseas R&D Activities and Home Productivity Growth: Evidence from Japanese Firm-Level Data," Discussion papers 07008, Research Institute of Economy, Trade and Industry (RIETI).
  8. Chen, Chung-Jen & Hsiao, Yung-Chang, 2013. "The endogenous role of location choice in product innovations," Journal of World Business, Elsevier, vol. 48(3), pages 360-372.
  9. Pradhan, Jaya Prakash, 2011. "Regional heterogeneity and firms’ innovation: the role of regional factors in industrial R&D in India," MPRA Paper 28096, University Library of Munich, Germany.

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