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Globalization of R&D by U.S-based Multinational Enterprises

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Author Info
Prema-chandra Athukorala ()
Archanun Kohpaiboonb

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Abstract

This paper examines patterns and determinants of overseas R&D investment by US-based manufacturing MNEs using a new panel dataset over the period 1990-2004. The analysis reveals that R&D intensity of operation of US MNE affiliates is mainly determined by the domestic market size, overall R&D capability and cost of hiring R&D personnel. There is no evidence to suggest that financial incentives have a significant impact on inter-country differences in R&D intensity when controlled for other relevant variables. Overall, our findings cast doubts on the efficacy of efforts by host country governments entice MNEs affiliates to engage in domestic R&D in a global context where R&D is becoming a truly global activity.

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Publisher Info
Paper provided by Australian National University, Economics RSPAS in its series Departmental Working Papers with number 2009-07.

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Length: 47 pages
Date of creation: 2009
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Handle: RePEc:pas:papers:2009-07

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Related research
Keywords: R&D; multinational enterprises; foreign direct investment;

Find related papers by JEL classification:
F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D

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This page was last updated on 2009-11-11.

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