IDEAS home Printed from https://ideas.repec.org/a/spr/eurasi/v4y2014i2p227-245.html
   My bibliography  Save this article

Main drivers for local and global R&D sourcing of European Multinational Enterprises

Author

Listed:
  • Michele Cincera
  • Claudio Cozza
  • Alexander Tübke

Abstract

Based on an original and recent representative sample of 130 large EU-based R&D corporations, this paper empirically investigates the main factors explaining the favourite (national or international) location choice for R&D activities. The main findings suggest that public support to R&D and proximity to other activities of the company influence the decision to locate R&D in the home country. Considerations on the cost of employing researchers become one factor among others only for firms preferring a location outside their home country, in particular in the rest of the world (countries other than the EU or the US). Copyright Eurasia Business and Economic Society 2014

Suggested Citation

  • Michele Cincera & Claudio Cozza & Alexander Tübke, 2014. "Main drivers for local and global R&D sourcing of European Multinational Enterprises," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 4(2), pages 227-245, December.
  • Handle: RePEc:spr:eurasi:v:4:y:2014:i:2:p:227-245
    DOI: 10.1007/s40821-014-0009-6
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s40821-014-0009-6
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s40821-014-0009-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Arie Y Lewin & Silvia Massini & Carine Peeters, 2009. "Why are companies offshoring innovation? The emerging global race for talent," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(8), pages 1406-1406, October.
    2. Arie Lewin & Silvia Massini & Carine Peeters, 2008. "Why are companies offshoring innovation ?the emerging global race for talent," Working Papers CEB 08-009, ULB -- Universite Libre de Bruxelles.
    3. Subal Kumbhakar & Raquel Ortega-Argilés & Lesley Potters & Marco Vivarelli & Peter Voigt, 2012. "Corporate R&D and firm efficiency: evidence from Europe’s top R&D investors," Journal of Productivity Analysis, Springer, vol. 37(2), pages 125-140, April.
    4. Bas, Christian Le & Sierra, Christophe, 2002. "'Location versus home country advantages' in R&D activities: some further results on multinationals' locational strategies," Research Policy, Elsevier, vol. 31(4), pages 589-609, May.
    5. Raquel Ortega-Argilés & Lesley Potters & Marco Vivarelli, 2011. "R&D and productivity: testing sectoral peculiarities using micro data," Empirical Economics, Springer, vol. 41(3), pages 817-839, December.
    6. Soete, Luc, 2006. "A Knowledge Economy Paradigm and its Consequences," MERIT Working Papers 2006-001, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. Michele Cincera & Julien Ravet, 2014. "Globalisation, industrial diversification and productivity growth in large European R&D companies," Journal of Productivity Analysis, Springer, vol. 41(2), pages 227-246, April.
    8. Hall, Bronwyn H. & Mairesse, Jacques & Mohnen, Pierre, 2010. "Measuring the Returns to R&D," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 1033-1082, Elsevier.
    9. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 17-45, National Bureau of Economic Research, Inc.
    10. Jacques Mairesse & Pierre Mohnen, 2001. "To Be or Not To Be Innovative: An Exercise in Measurement," NBER Working Papers 8644, National Bureau of Economic Research, Inc.
    11. Martin Falk, 2004. "What Drives Business R&D Intensity Across OECD Countries?," WIFO Working Papers 236, WIFO.
    12. Davis, Lee N. & Meyer, Klaus E., 2004. "Subsidiary research and development, and the local environment," International Business Review, Elsevier, vol. 13(3), pages 359-382, June.
    13. Patel, Pari & Vega, Modesto, 1999. "Patterns of internationalisation of corporate technology: location vs. home country advantages1," Research Policy, Elsevier, vol. 28(2-3), pages 145-155, March.
    14. Bulent Guloglu & R. Tekin, 2012. "A Panel Causality Analysis of the Relationship among Research and Development, Innovation, and Economic Growth in High-Income OECD Countries," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 2(1), pages 32-47, June.
    15. Pierre Mohnen & Bronwyn Hall, 2013. "Innovation and Productivity: An Update," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 3(1), pages 47-65, June.
    16. Pietro Moncada-Paternò-Castello & Marco Vivarelli & Peter Voigt, 2011. "Drivers and impacts in the globalization of corporate R&D: an introduction based on the European experience," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 20(2), pages 585-603, April.
    17. Peter D. Ørberg Jensen & Torben Pedersen, 2011. "The Economic Geography of Offshoring: The Fit between Activities and Local Context," Journal of Management Studies, Wiley Blackwell, vol. 48(2), pages 352-372, March.
    18. Florence Jaumotte & Nigel Pain, 2005. "Innovation in the Business Sector," OECD Economics Department Working Papers 459, OECD Publishing.
    19. Mark Rogers, 2006. "R&D and Productivity in the UK: evidence from firm-level data in the 1990s," Economics Series Working Papers 255, University of Oxford, Department of Economics.
    20. Kumar, Nagesh, 2001. "Determinants of location of overseas R&D activity of multinational enterprises: the case of US and Japanese corporations1," Research Policy, Elsevier, vol. 30(1), pages 159-174, January.
    21. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    22. Hans Lööf & Almas Heshmati, 2003. "The link between firm-level innovation and aggregate productivity growth: a cross-country examination," Research Evaluation, Oxford University Press, vol. 12(2), pages 131-147, August.
    23. Erol Taymaz & Yesim Ucdogruk, 2013. "The Demand for Researchers: Does Public R&D Support Make a Difference?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 3(1), pages 90-99, June.
    24. Kuemmerle, Walter, 1999. "Foreign direct investment in industrial research in the pharmaceutical and electronics industries--results from a survey of multinational firms," Research Policy, Elsevier, vol. 28(2-3), pages 179-193, March.
    25. Arie Lewin & Silvia Massini & Carine Peeters, 2009. "Why are companies offshoring innovation the emerging global race for talent (Journal of International Business Studies (2009) 40 (901-925) DOI:10.1057/jibs.2008.92)," ULB Institutional Repository 2013/205625, ULB -- Universite Libre de Bruxelles.
    26. 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.
    27. Jerry Sheehan & Andrew Wyckoff, 2003. "Targeting R&D: Economic and Policy Implications of Increasing R&D Spending," OECD Science, Technology and Industry Working Papers 2003/8, OECD Publishing.
    28. Thomas Hatzichronoglou, 1997. "Revision of the High-Technology Sector and Product Classification," OECD Science, Technology and Industry Working Papers 1997/2, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cozza, Claudio & Franco, Chiara & Perani, Giulio, 2018. "R&D endowments at home driving R&D internationalisation: Evidence from the Italian business R&D survey," Technological Forecasting and Social Change, Elsevier, vol. 134(C), pages 277-289.
    2. Dilek Cetin & Michele Cincera, 2015. "Circular Causality of R&D and Export in EU countries," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 1(1), pages 82-105, June.
    3. Klaus Kultti & Tuomas Takalo & Tanja Tanayama, 2015. "R&D spillovers and information exchange: a case study," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 5(1), pages 63-76, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lorena D’Agostino, 2015. "The neglected effects of R&D captive offshoring in emerging countries on the creation of knowledge at home," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(1), pages 61-91, March.
    2. Martinez-Noya, Andrea & Garcia-Canal, Esteban & Guillen, Mauro F., 2012. "International R&D service outsourcing by technology-intensive firms: Whether and where?," Journal of International Management, Elsevier, vol. 18(1), pages 18-37.
    3. René Belderbos & Bart Leten & Shinya Suzuki, 2017. "Scientific research, firm heterogeneity, and foreign R&D locations of multinational firms," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 26(3), pages 691-711, September.
    4. Jérôme Danguy, 2017. "Globalization of innovation production: A patent-based industry analysis," Science and Public Policy, Oxford University Press, vol. 44(1), pages 75-94.
    5. Marina Papanastassiou & Robert Pearce & Antonello Zanfei, 2020. "Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: A review of the literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 623-664, June.
    6. Sandro Montresor & Antonio Vezzani, 2015. "On the R&D giants’ shoulders: do FDI help to stand on them?," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(1), pages 33-60, March.
    7. Gavin Murphy & Iulia Siedschlag, 2018. "Determinants of R&D offshoring: firm-level evidence from a small open economy," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 529-553, August.
    8. Athreye, Suma & Batsakis, Georgios & Singh, Satwinder, 2016. "Local, global, and internal knowledge sourcing: The trilemma of foreign-based R&D subsidiaries," Journal of Business Research, Elsevier, vol. 69(12), pages 5694-5702.
    9. Davide Castellani & Mariacristina Piva & Torben Schubert & Marco Vivarelli, 2018. "The source of the US /EU Productivity Gap:Less and less effective R&D," LEM Papers Series 2018/16, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    10. Castellani, Davide & Piva, Mariacristina & Schubert, Torben & Vivarelli, Marco, 2019. "R&D and productivity in the US and the EU: Sectoral specificities and differences in the crisis," Technological Forecasting and Social Change, Elsevier, vol. 138(C), pages 279-291.
    11. Lorena M. D'Agostino & Grazia D. Santangelo, 2012. "The Global Fragmentation of R&D Activities: The Home Region Perspective," DRUID Working Papers 12-06, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    12. Jaana Rahko, 2016. "Internationalization of corporate R&D activities and innovation performance," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(6), pages 1019-1038.
    13. Urbig, Diemo & Procher, Vivien D. & Steinberg, Philip J. & Volkmann, Christine, 2022. "The role of firm-level and country-level antecedents in explaining emerging versus advanced economy multinationals' R&D internationalization strategies," International Business Review, Elsevier, vol. 31(3).
    14. Pietro Moncada-Paterno-Castello & Peter Voigt & Marco Vivarelli, 2011. "Evolution of Globalised business R&D: Features, drivers, impacts," JRC Working Papers on Corporate R&D and Innovation 2011-02, Joint Research Centre.
    15. Anja Schmiele, 2012. "Drivers for international innovation activities in developed and emerging countries," The Journal of Technology Transfer, Springer, vol. 37(1), pages 98-123, February.
    16. Subal Kumbhakar & Raquel Ortega-Argilés & Lesley Potters & Marco Vivarelli & Peter Voigt, 2012. "Corporate R&D and firm efficiency: evidence from Europe’s top R&D investors," Journal of Productivity Analysis, Springer, vol. 37(2), pages 125-140, April.
    17. Martin Falk, 2013. "New Empirical Findings for International Investment in Intangible Assets. WWWforEurope Working Paper No. 30," WIFO Studies, WIFO, number 46891, April.
    18. Stefano Bresciani & Alberto Ferraris & Manlio Del Giudice, 2016. "R&D internationalization in asian developing countries: evidence from european multinationals," MERCATI & COMPETITIVIT?, FrancoAngeli Editore, vol. 2016(3), pages 25-44.
    19. Dachs, Bernhard, 2017. "Internationalisation of R&D: A Review of Drivers, Impacts, and new Lines of Research," MPRA Paper 83367, University Library of Munich, Germany.
    20. Michele Cincera & Julien Ravet, 2014. "Globalisation, industrial diversification and productivity growth in large European R&D companies," Journal of Productivity Analysis, Springer, vol. 41(2), pages 227-246, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:eurasi:v:4:y:2014:i:2:p:227-245. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.