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What Determines Overseas R&D Activities? The Case of Japanese Multinational Firms

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  • SHIMIZUTANI Satoshi
  • TODO Yasuyuki

Abstract

This paper explores what factors determine the nature, extent, and location of Japanese multinationals' R&D activities abroad. Taking advantage of a rich micro-level dataset from the survey on Japanese overseas subsidiaries, the study distinguishes between two types of overseas R&D: innovative and adaptive. We find several differences between the determinants of overseas innovative and adaptive R&D. These differences confirm the view that overseas innovative R&D aims at the exploitation of foreign advanced knowledge, whereas overseas adaptive R&D is mostly influenced by the market size of the host country. Our results provide a convincing and comprehensive explanation of the geographical distribution of overseas R&D by Japanese MNEs.

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Bibliographic Info

Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 07010.

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Length: 39 pages
Date of creation: Mar 2007
Date of revision:
Handle: RePEc:eti:dpaper:07010

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  16. Belderbos, Rene, 2001. "Overseas innovations by Japanese firms: an analysis of patent and subsidiary data," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/100664, Katholieke Universiteit Leuven.
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Citations

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Cited by:
  1. Pradhan, Jaya Prakash, 2011. "Regional heterogeneity and firms’ innovation: the role of regional factors in industrial R&D in India," MPRA Paper 28096, University Library of Munich, Germany.
  2. Nobuaki Yamashita & Kyoji Fukao, 2008. "Expansion Abroad and Jobs at Home: Evidence from Japanese Multinational Enterprises," Asia Pacific Economic Papers 377, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
  3. Suzuki, Shinya, 2012. "Internationalization of R&D activities by multinational firms.," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/340794, Katholieke Universiteit Leuven.
  4. Belderbos, Rene & Leten, Bart & Suzuki, Shinya, 2009. "Does Excellence in Academic Research Attract Foreign R&D?," UNU-MERIT Working Paper Series 066, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
  5. TODO Yasuyuki & SHIMIZUTANI Satoshi, 2007. "Overseas R&D Activities and Home Productivity Growth: Evidence from Japanese Firm-Level Data," Discussion papers 07008, Research Institute of Economy, Trade and Industry (RIETI).
  6. Hall, Bronwyn H., 2011. "The internationalization of R&D," UNU-MERIT Working Paper Series 049, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
  7. Virginie JACQUIER-ROUX & Christian LE BAS, 2008. "Localisation Des Activités De R&D Des Firmes Multinationales, Modes D’Organisation En Réseaux Et Transfert Transnational Des Connaissances : Un Cadre D’Analyse," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 28, pages 11-38.
  8. SUZUKI Shinya & Rene BELDERBOS & KWON Hyeog Ug & FUKAO Kyoji, 2012. "The Impact of Host Countries' University Research and University-Industry Collaboration on the Location of Research and Development: Evidence from Japanese multinational firms," Discussion papers 12080, Research Institute of Economy, Trade and Industry (RIETI).

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