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Globalization of R&D by US-based multinational enterprises

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  • Athukorala, Prema-chandra
  • Kohpaiboon, Archanun

Abstract

This paper examines patterns and determinants of overseas R&D investment by US-based manufacturing MNEs using a new panel dataset over the period 1990-2004. The analysis reveals that R&D intensity of operation of US MNE affiliates is determined mainly by the domestic market size, overall R&D capability and cost of hiring R&D personnel. There is no evidence to suggest that R&D specific incentives have a significant impact on inter-country differences in R&D intensity when controlled for other relevant variables. Overall, our findings cast doubts on the efficacy of efforts by host country governments to entice MNE affiliates to engage in domestic R&D activity, in a context where R&D is becoming a truly global activity.

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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 39 (2010)
Issue (Month): 10 (December)
Pages: 1335-1347

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Handle: RePEc:eee:respol:v:39:y:2010:i:10:p:1335-1347

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Web page: http://www.elsevier.com/locate/respol

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Keywords: R&D Multinational enterprises Foreign direct investment;

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Cited by:
  1. Eva Dettmann & Iciar Dominguez Lacasa & Jutta Günther & Björn Jindra, 2013. "Determinants of Foreign Technological Activity in German Regions – A Count Model Analysis of Transnational Patents (1996-2009)," IWH Discussion Papers 12, Halle Institute for Economic Research.
  2. Alvandi , Keyvan & Chaminade , Cristina & Lv, Ping, 2013. "Commonalities and differences between production-related FDI (PFDI) and technology-related FDI (TFDI) in developed and emerging economies," CIRCLE Electronic Working Papers 2013/47, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  3. Barros, Henrique M., 2011. "The Effects of Innovation Partnership, Foreign Ownership and Enhanced Management Practices on the Use of Patents in Brazilian Manufacturing," Insper Working Papers wpe_255, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.

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