How Do Different Motives for R&D Investment in Foreign Locations Affect Domestic Firm Performance? An Analysis Based on Swiss Panel Micro Data
AbstractThe aim of this article is to investigate the differences between specific motives of R&D investment in foreign locations with respect to the factors influencing the likelihood of foreign R&D and to the impact of foreign presence on the parent firms’ innovativeness and productivity. An econometric analysis of Swiss firm panel data shows, firstly, that factors related to firm-specific knowledge-oriented advantages are more important for explaining the likelihood of foreign R&D activities than factors reflecting disadvantages related to home location. Secondly, knowledge-oriented motives of foreign R&D are positively correlated to innovation performance of domestic firms, whereas market-oriented and resource-oriented strategies correlate positively with productivity.
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Bibliographic InfoPaper provided by KOF Swiss Economic Institute, ETH Zurich in its series KOF Working papers with number 10-258.
Length: 41 pages
Date of creation: May 2010
Date of revision:
Research and development (R&D); Foreign R&D; Motives of foreign R&D; Home effects of foreign R&D; Firm performance;
Other versions of this item:
- Spyros Arvanitis & Heinz Hollenstein, 2010. "How Do Different Motives for R&D Investment in Foreign Locations Affect Domestic Firm Performance? An Analysis Based on Swiss Panel Micro Data," WIFO Working Papers, WIFO 375, WIFO.
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-12-18 (All new papers)
- NEP-CSE-2010-12-18 (Economics of Strategic Management)
- NEP-EFF-2010-12-18 (Efficiency & Productivity)
- NEP-INO-2010-12-18 (Innovation)
- NEP-SBM-2010-12-18 (Small Business Management)
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