Overseas R&D Activities by Multinational Enterprises: Evidence from Japanese Firm-Level Data
AbstractThis paper investigates both the determinants and the impact of overseas subsidiaries' R&D activities, using firm-level panel data for Japanese multinational enterprises. We distinguish between overseas innovative and adaptive R&D and find substantial differences between the two types of R&D. The evidence suggests that overseas innovative R&D aims at the exploitation of foreign advanced knowledge, and by doing so, it helps to raise the productivity of the parent firm. In contrast, the primary role of overseas adaptive R&D is to enhance the productivity of overseas subsidiaries through the use of parent firms' knowledge. In addition, we find no complementarity between home and overseas innovative R&D, i.e., no evidence that overseas innovative R&D raises the marginal effect of home R&D on home productivity.
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Bibliographic InfoPaper provided by Institute of Economic Research, Hitotsubashi University in its series Hi-Stat Discussion Paper Series with number d05-91.
Date of creation: May 2005
Date of revision:
overseas R&D activities; multinational enterprises; total factor productivity;
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-06-27 (All new papers)
- NEP-DEV-2005-06-27 (Development)
- NEP-INO-2005-06-27 (Innovation)
- NEP-SEA-2005-06-27 (South East Asia)
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- Shimizutani, Satoshi & Todo, Yasuyuki, 2008.
"What determines overseas R&D activities? The case of Japanese multinational firms,"
Elsevier, vol. 37(3), pages 530-544, April.
- SHIMIZUTANI Satoshi & TODO Yasuyuki, 2007. "What Determines Overseas R&D Activities? The Case of Japanese Multinational Firms," Discussion papers 07010, Research Institute of Economy, Trade and Industry (RIETI).
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