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Overseas R&D by Multinationals in foreign Centers of Excellence

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  • Fors, Gunnar

    (The Industrial Institute for Economics and Social Research)

  • Zejan, Mario

    (Department of Economics)

Abstract

This paper examines the determinants of overseas R&D by Swedish multinationals. Our empirical results indicate that the location of R&D abroad to a large extent is motivated by the need to adapt products and processes to conditions in the foreign markets where the firms operate. However, we also find that the MNEs tend to locate their R&D in host countries which are relatively specialized technologically in the firms' own areas. This finding may suggest that one additional motive to locating R&D abroad is to gain access to knowledge in foreign "centers of excellence" and benefit from localized spillovers.

Suggested Citation

  • Fors, Gunnar & Zejan, Mario, 1996. "Overseas R&D by Multinationals in foreign Centers of Excellence," SSE/EFI Working Paper Series in Economics and Finance 111, Stockholm School of Economics.
    • Handle: RePEc:hhs:hastef:0111
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    References listed on IDEAS

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    Cited by:

    1. Shin-Horng Chen & Meng-Chun Liu, 2005. "International R&D Deployment and Locational Advantage of Developing Countries: A Case Study of Taiwan," NBER Chapters, in: International Trade in East Asia, pages 81-108, National Bureau of Economic Research, Inc.
    2. Shanzi Ke & Mingyong Lai, 2011. "Productivity of Chinese Regions and the Location of Multinational Research and Development," International Regional Science Review, , vol. 34(1), pages 102-131, January.
    3. Suma Athreye & Martha Prevezer, 2008. "R&D offshoring and the domestic science base in India and China," Working Papers 26, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    4. Garcia-Bernardo, Javier & Reurink, Arjan, 2019. "Competing with whom? European tax competition, the "great fragmentation of the firm," and varieties of FDI attraction profiles," MPIfG Discussion Paper 19/9, Max Planck Institute for the Study of Societies.
    5. Liu, Meng-chun & Chen, Shin-Horng, 2012. "MNCs’ offshore R&D networks in host country's regional innovation system: The case of Taiwan-based firms in China," Research Policy, Elsevier, vol. 41(6), pages 1107-1120.
    6. Globerman, Steven & Kokko, Ari & Sjöholm, Fredrik, 1996. "Technology Sourcing in Swedish MNEs and SMEs: Evidence from Patent Data," SSE/EFI Working Paper Series in Economics and Finance 125, Stockholm School of Economics.

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    More about this item

    Keywords

    Overseas R&D; technology sourcing; multinationals;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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