IDEAS home Printed from https://ideas.repec.org/a/ags/reapec/264580.html
   My bibliography  Save this article

R&D And Technological Internationalisation: Evidence From A Random Coefficient Treatment Model

Author

Listed:
  • Cerulli, Giovanni
  • De Marchi, Mario

Abstract

By considering a sample of Italian manufacturing firms, this paper aims at comparing the R&D performance of foreign (multinational) enterprises with that of home companies. Its methodological innovation consists in adopting a random coefficient treatment model, which allows us to: (i) embed this comparison in a “counterfactual” setting; (ii) and calculate the firms’ “specific treatment effect”. The carrying out of these analyses would not be possible with the use of standard regression tools. The results suggest that the weakness of the (Italian) national R&D production system mainly lies in the “smallness” of its firms: while a home company of large size is able to perform more R&D than a foreign twin, the performance of a home company of small size is worse than that of similar foreign firms. Thus, as for policy implications, we suggest that attracting inward investments should be accompanied by policies aimed at better supporting the growth of home companies.

Suggested Citation

  • Cerulli, Giovanni & De Marchi, Mario, 2012. "R&D And Technological Internationalisation: Evidence From A Random Coefficient Treatment Model," Review of Applied Economics, Lincoln University, Department of Financial and Business Systems, vol. 9(1-2), January.
  • Handle: RePEc:ags:reapec:264580
    DOI: 10.22004/ag.econ.264580
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/264580/files/RAE%202013%20Giovanni%20Cerulli%20and%20Mario%20De%20Marchi.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Blanc, Helene & Sierra, Christophe, 1999. "The Internationalisation of R&D by Multinationals: A Trade-off between External and Internal Proximity," Cambridge Journal of Economics, Oxford University Press, vol. 23(2), pages 187-206, March.
    2. M. Ishaq Nadiri, 1979. "Contributions and Determinants of Research and Development Expenditures in the U.S. Manufacturing Industries," NBER Working Papers 0360, National Bureau of Economic Research, Inc.
    3. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    4. Dosi, Giovanni & Nelson, Richard R, 1994. "An Introduction to Evolutionary Theories in Economics," Journal of Evolutionary Economics, Springer, vol. 4(3), pages 153-172, September.
    5. David, Paul A. & Hall, Bronwyn H., 2000. "Heart of darkness: modeling public-private funding interactions inside the R&D black box," Research Policy, Elsevier, vol. 29(9), pages 1165-1183, December.
    6. J. D. Howe & D. G. McFetridge, 1976. "The Determinants of R & D Expenditures," Canadian Journal of Economics, Canadian Economics Association, vol. 9(1), pages 57-71, February.
    7. Scherer, F. M., 1982. "Inter-industry technology flows in the United States," Research Policy, Elsevier, vol. 11(4), pages 227-245, August.
    8. Patel, Pari & Vega, Modesto, 1999. "Patterns of internationalisation of corporate technology: location vs. home country advantages1," Research Policy, Elsevier, vol. 28(2-3), pages 145-155, March.
    9. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
    10. Giovanni Cerulli, 2012. "Ivtreatreg: a new STATA routine for estimating binary treatment models with heterogeneous response to treatment under observable and unobservable selection," CERIS Working Paper 201203, Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY -NOW- Research Institute on Sustainable Economic Growth - Moncalieri (TO) ITALY.
    11. Un, C. Annique & Cuervo-Cazurra, Alvaro, 2008. "Do subsidiaries of foreign MNEs invest more in R&D than domestic firms?," Research Policy, Elsevier, vol. 37(10), pages 1812-1828, December.
    12. Scherer, F M, 1992. "Schumpeter and Plausible Capitalism," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1416-1433, September.
    13. James Heckman, 1997. "Instrumental Variables: A Study of Implicit Behavioral Assumptions Used in Making Program Evaluations," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 441-462.
    14. Nadiri, M. Ishaq, 1979. "Contributions and Determinants of Research and Development Expenditures in the US Manufacturing Industries," Working Papers 79-16, C.V. Starr Center for Applied Economics, New York University.
    15. Florida, Richard, 1997. "The globalization of R&D: Results of a survey of foreign-affiliated R&D laboratories in the USA," Research Policy, Elsevier, vol. 26(1), pages 85-103, March.
    16. Cohen, Wesley M & Klepper, Steven, 1996. "Firm Size and the Nature of Innovation within Industries: The Case of Process and Product R&D," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 232-243, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cohen, Wesley M., 2010. "Fifty Years of Empirical Studies of Innovative Activity and Performance," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.),Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 129-213, Elsevier.
    2. Becker Wolfgang & Peters Jürgen, 2005. "Innovation Effects of Science-Related Technological Opportunities / Innovationseffekte von technologischen Möglichkeiten aus dem Wissenschaftsbereich: Theoretical Considerations and Empirical Findings," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 225(2), pages 130-150, April.
    3. Wolfgang Becker & Juergen Peters, 2000. "Technological Opportunities, Absorptive Capacities, and Innovation," Discussion Paper Series 195, Universitaet Augsburg, Institute for Economics.
    4. Verónica Robert & Gabriel Yoguel & Octavio Lerena, 2017. "The ontology of complexity and the neo-Schumpeterian evolutionary theory of economic change," Journal of Evolutionary Economics, Springer, vol. 27(4), pages 761-793, September.
    5. Edward J. Malecki, 2010. "Everywhere? The Geography Of Knowledge," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 493-513, February.
    6. Frank T. Rothaermel & Maria Tereza Alexandre, 2009. "Ambidexterity in Technology Sourcing: The Moderating Role of Absorptive Capacity," Organization Science, INFORMS, vol. 20(4), pages 759-780, August.
    7. van Beers, Cees & Berghäll, Elina & Poot, Tom, 2008. "R&D internationalization, R&D collaboration and public knowledge institutions in small economies: Evidence from Finland and the Netherlands," Research Policy, Elsevier, vol. 37(2), pages 294-308, March.
    8. Alice Lam, 2003. "Organizational Learning in Multinationals: R&D Networks of Japanese and US MNEs in the UK," Journal of Management Studies, Wiley Blackwell, vol. 40(3), pages 673-703, May.
    9. Cozza, Claudio & Franco, Chiara & Perani, Giulio, 2018. "R&D endowments at home driving R&D internationalisation: Evidence from the Italian business R&D survey," Technological Forecasting and Social Change, Elsevier, vol. 134(C), pages 277-289.
    10. Olof Ejermo & Karin Bergman, 2014. "Services vs. Manufacturing – How Does Foreign and Domestic Sales Impact on Their R&D?," Journal of Industry, Competition and Trade, Springer, vol. 14(3), pages 367-391, September.
    11. Lee, You-Na & Walsh, John P., 2016. "Inventing while you work: Knowledge, non-R&D learning and innovation," Research Policy, Elsevier, vol. 45(1), pages 345-359.
    12. Harabi, Najib, 1994. "Technischer Fortschritt in der Schweiz: Empirische Ergebnisse aus industrieökonomischer Sicht [Technischer Fortschritt in der Schweiz:Empirische Ergebnisse aus industrieökonomischer Sicht]," MPRA Paper 6725, University Library of Munich, Germany.
    13. Jérôme Danguy, 2017. "Globalization of innovation production: A patent-based industry analysis," Science and Public Policy, Oxford University Press, vol. 44(1), pages 75-94.
    14. GROSSE Olivier & SEVI Benoît, 2005. "Dérégulation et R&D dans le secteur énergétique européen," Cahiers du CREDEN (CREDEN Working Papers) 05.07.59, CREDEN (Centre de Recherche en Economie et Droit de l'Energie), Faculty of Economics, University of Montpellier 1.
    15. Daria Ciriaci & Pietro Moncada-Paternò-Castello & Peter Voigt, 2012. "Does size or age of innovative firms affect their growth persistence? -Evidence from a panel of innovative Spanish firms-," JRC Working Papers on Corporate R&D and Innovation 2012-03, Joint Research Centre (Seville site).
    16. Esposti, Roberto, 2002. "Public agricultural R&D design and technological spill-ins: A dynamic model," Research Policy, Elsevier, vol. 31(5), pages 693-717, July.
    17. Dieter Schumacher & Florian Straßberger, 1994. "Broadening the Scope for Reporting on the Technological Competitiveness of the Federal Republic of Germany," Discussion Papers of DIW Berlin 100, DIW Berlin, German Institute for Economic Research.
    18. Wolfgang Becker, 2003. "Evaluation of the Role of Universities in the Innovation Process," Discussion Paper Series 241, Universitaet Augsburg, Institute for Economics.
    19. Leiponen, Aija, . "Essays in the Economics of Knowledge: Innovation, Collaboration, and Organizational Complementarities," ETLA A, The Research Institute of the Finnish Economy, number 31.
    20. Jérôme Danguy, 2014. "Who collaborates with whom: the role of technological distance in international innovation," iCite Working Papers 2014-010, ULB -- Universite Libre de Bruxelles.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:reapec:264580. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/aelinnz.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.