Foreign and domestic R&D investment
AbstractA considerable share of R&D investment is due to multinational firms that simultaneously operate R&D bases at home and abroad. We develop a simple model of foreign and domestic R&D investment and test the model's predictions on a sample of 146 Japanese multinational firms' R&D investments in Japan and the United States in 1996. The empirical results confirm that the foreign to domestic R&D ratio depends on relative technological opportunities and relative demand conditions, with foreign research expenditures responding to technological opportunity and foreign development expenditures responding to demand.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.
Volume (Year): 18 (2009)
Issue (Month): 4 ()
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Other versions of this item:
- Rene Belderbos & Kyoji Fukao & Tomoko Iwasa, 2006. "Foreign and Domestic R&D Investment," Hi-Stat Discussion Paper Series, Institute of Economic Research, Hitotsubashi University d05-140, Institute of Economic Research, Hitotsubashi University.
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
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