Multinational Firms, Technology and Location
Abstract
This paper analyzes a three-stage game where two firms choose (i) their respective technology, by deciding on a level of R&D, (ii) whether this technology is to be used in a domestic or in a local plant and (iii) the quantity produced and sold on the market. If technology transfer costs are fixed, "high-tech" firms tend to produce abroad, but if such costs are associated with the level of R&D, high-tech firms tend to export. An empirical analyses using a data set of Swedish multinational firms, confirms the latter prediction.Download Info
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Bibliographic Info
Paper provided by Research Institute of Industrial Economics (IFN) in its series Research Institute of Industrial Economics Working Papers with number 512.Length: 46 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:iniesr:512
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Postal: Research Institute of Industrial Economics (IFN) ; B.O. Box 55665, SE-102 15 Stockholm, Sweden
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Related research
Keywords: TRANSNATIONAL CORPORATIONS ; RESEARCH AND DEVELOPMENT ; LOCATION OF INDUSTRY;Other versions of this item:
- Norback, Pehr-Johan, 2001. "Multinational firms, technology and location," Journal of International Economics, Elsevier, vol. 54(2), pages 449-469, August.
- Norbäck, Pehr-Johan, 1999. "Multinational Firms, Technology and Location," Working Paper Series 512, Research Institute of Industrial Economics, revised 02 Nov 2000.
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Belderbos, Rene & Lykogianni, Elissavet & Veugelers, Reinhilde, 2006.
"Strategic R&D location in European manufacturing industries,"
Open Access publications from Katholieke Universiteit Leuven
urn:hdl:123456789/121132, Katholieke Universiteit Leuven.
- René Belderbos & Elissavet Lykogianni & Reinhilde Veugelers, 2008. "Strategic R&D Location in European Manufacturing Industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 144(2), pages 183-206, July.
- Jacques, Armel, 2006. "Des firmes multinationales : un survol de la littérature microéconomique," L'Actualité Economique, Société Canadienne de Science Economique, vol. 82(4), pages 643-691, décembre.
- Wolfgang Keller & Stephen R. Yeaple, 2009. "The Gravity of Knowledge," NBER Working Papers 15509, National Bureau of Economic Research, Inc.
- Yeaple, Stephen & Helpman, Elhanan & Melitz, Marc, 2004.
"Export versus FDI with Heterogeneous Firms,"
Scholarly Articles
3229098, Harvard University Department of Economics.
- Elhanan Helpman & Marc J. Melitz & Stephen R. Yeaple, 2004. "Export Versus FDI with Heterogeneous Firms," American Economic Review, American Economic Association, vol. 94(1), pages 300-316, March.
- JINJI Naoto & ZHANG Xingyuan & HARUNA Shoji, 2011. "Does Tobin's q Matter for Firms' Choices of Globalization Mode?," Discussion papers 11061, Research Institute of Economy, Trade and Industry (RIETI).
- Stanley Watt, 2007. "Firm Heterogeneity and Weak Intellectual Property Rights," IMF Working Papers 07/161, International Monetary Fund.
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"Organization of Multinational Activities and Ownership Structure,"
Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems
98, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
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- Henrik Braconier & Pehr-Johan Norback & Dieter Urban, 2002.
"Vertical FDI Reviseted,"
Development Working Papers
167, Centro Studi Luca d\'Agliano, University of Milano.
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"Should R&D Champions be Protected from Foreign Takeovers?,"
Working Paper Series
772, Research Institute of Industrial Economics.
- Katariina Nilsson Hakkala & Olivier Bertrand & Norbäck Pehr-Johan & Persson Lars, 2008. "Should R&D Champions be Protected from Foreign Takeovers?," Discussion Papers 459, Government Institute for Economic Research Finland (VATT).
- Belderbos, Rene & Lykoianni, E & Veugelers, Reinhilde, 2005.
"Strategic R&D location by multinational firms: Spillovers, technology sourcing, and competition,"
Open Access publications from Katholieke Universiteit Leuven
urn:hdl:123456789/228402, Katholieke Universiteit Leuven.
- René Belderbos & Elissavet Lykogianni & Reinhilde Veugelers, 2008. "Strategic R&D Location by Multinational Firms: Spillovers, Technology Sourcing, and Competition," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 17(3), pages 759-779, 09.
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