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Do Overseas R&D Laboratories in Emerging Markets Contribute to Home Knowledge Creation?

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  • Lorena M. D’Agostino

    (University of Catania)

  • Grazia D. Santangelo

    (University of Catania)

Abstract

The double diamond model contends that both home and host locations affect MNE’s international competitiveness. Drawing on the view that multinationals act as a link between home and host, we extend this framework and investigate theindirect impact of host on home location with reference to R&D internationalisation in emerging economies. By resorting to a sample of 221 large OECD regions from which R&D investments departed to the top six host emerging economies, we evaluate the contribution of different OECD R&D laboratories to the home knowledge creation of the OECD investing region. We test the complementarity between domestic R&D and different value-added R&D activities carried out by different technology-intensive R&D laboratories in terms of home knowledge creation of OECD investing regions. Our findings suggest that the activity of R&D laboratories focusing onadaptation complements domestic R&D in terms of knowledge creation regardless of the technological intensity of their operations, while the activity of medium technology-intensive R&D laboratories focusing ondevelopment is complementary to domestic R&D.

Suggested Citation

  • Lorena M. D’Agostino & Grazia D. Santangelo, 2012. "Do Overseas R&D Laboratories in Emerging Markets Contribute to Home Knowledge Creation?," Management International Review, Springer, vol. 52(2), pages 251-273, April.
    • Handle: RePEc:spr:manint:v:52:y:2012:i:2:d:10.1007_s11575-012-0135-2
    DOI: 10.1007/s11575-012-0135-2
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