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Multinationals, R&D, and productivity: evidence for UK manufacturing firms

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  • Dolores Añón Higón
  • Miguel Manjón Antolín
  • Juan A. Mañez

Abstract

In this study, we analyze multinationality (domestic-based firms versus multinationals) and foreignness (foreign versus domestic firms) effects in the returns of R&D to productivity. We follow a two-step strategy. In the first step, we consistently estimate firm's productivity by GMM and numerically compute the sample distribution of the R&D returns. In the second step, we use stochastic dominance techniques to make inferences on the multinationality and foreignness effects. Results for a panel of UK manufacturing firms suggest that multinationality and foreignness effects operate in an opposite way: whilst the multinationality effect enhances R&D returns, the foreignness diminishes them. Copyright 2011 The Author 2011. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/icc/dtr007
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Bibliographic Info

Article provided by Oxford University Press in its journal Industrial and Corporate Change.

Volume (Year): 20 (2011)
Issue (Month): 2 (April)
Pages: 641-659

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Handle: RePEc:oup:indcch:v:20:y:2011:i:2:p:641-659

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