Overseas R&D by Multinationals in Foreign Centers of Excellence
AbstractThis 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.
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Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 458.
Length: 21 pages
Date of creation: 28 Dec 2012
Date of revision:
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Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
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Overseas R&D; Technology Sourcing; Multinationals;
Find related papers by JEL classification:
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-07 (All new papers)
- NEP-CSE-2013-01-07 (Economics of Strategic Management)
- NEP-INO-2013-01-07 (Innovation)
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