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OVERSEAS R&D ACTIVITIES AND HOME PRODUCTIVITY GROWTH: EVIDENCE FROM JAPANESE FIRM-LEVEL DATA -super-

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  • YASUYUKI TODO
  • SATOSHI SHIMIZUTANI

Abstract

This paper investigates the impact of overseas subsidiaries' R&D activities on the productivity growth of parent firms using firm-level data for Japanese multinational enterprises. Based on survey responses, we classify each overseas subsidiary's R&D as either 'innovative R&D,' which we hypothesize is likely to lead to the acquisition of foreign knowledge, or 'adaptive R&D,' which is more likely to lead to adaptation to local conditions. We find that overseas innovative R&D raises the parent firm's productivity growth, while adaptive R&D has no such effect. In addition, overseas innovative R&D does not improve the rate of return on home R&D. Copyright 2008 The Authors. Journal compilation 2008 Blackwell Publishing Ltd. and the Editorial Board of The Journal of Industrial Economics.

Suggested Citation

  • Yasuyuki Todo & Satoshi Shimizutani, 2008. "OVERSEAS R&D ACTIVITIES AND HOME PRODUCTIVITY GROWTH: EVIDENCE FROM JAPANESE FIRM-LEVEL DATA -super-," Journal of Industrial Economics, Wiley Blackwell, vol. 56(4), pages 752-777, December.
  • Handle: RePEc:bla:jindec:v:56:y:2008:i:4:p:752-777
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    References listed on IDEAS

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    Cited by:

    1. Spyros Arvanitis & Heinz Hollenstein, 2010. "How Do Different Motives for R&D Investment in Foreign Locations Affect Domestic Firm Performance?," KOF Working papers 10-258, KOF Swiss Economic Institute, ETH Zurich.
    2. Todo, Yasuyuki & Shimizutani, Satoshi, 2009. "R&D intensity for innovative and adaptive purposes in overseas subsidiaries: Evidence from Japanese multinational enterprises," Research in International Business and Finance, Elsevier, vol. 23(1), pages 31-45, January.

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