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The Impact of Host Countries' University Research and University-Industry Collaboration on the Location of Research and Development: Evidence from Japanese multinational firms

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  • SUZUKI Shinya
  • Rene BELDERBOS
  • KWON Hyeog Ug
  • FUKAO Kyoji

Abstract

We examine the impact of the strength of host countries' university research and university-industry collaboration on the propensity of Japanese multinational firms to conduct research and development (R&D) activities in these countries. We consider heterogeneous effects based on the type of R&D activity: basic research, applied research, and development for local markets and for global markets. Drawing on official survey data on R&D facilities of 498 Japanese multinational firms in 24 host countries, we find support for the notion that the strength of university research increases the probability that firms conduct R&D in a host country. Applied research activities are attracted to countries with relatively intensive university-industry collaboration. Moreover, firms from high-tech industries respond significantly more strongly to the presence of university research than those from low-tech industries.

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Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 12080.

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Length: 33 pages
Date of creation: Dec 2012
Date of revision:
Handle: RePEc:eti:dpaper:12080

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