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The Internationalisation of German Companies' R&D

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  • Cantwell, John
  • Harding, Rebecca

Abstract

Research and development in the German economy is internationalising: recently there has been an increase in outward DFI by German companies relative to the inward DFI of foreign-owned companies in Germany. By examining the long term trends in patents granted in the USA to the world's largest firms between 1969 and 1995, it emerges that Germany is now catching-up with a world-wide trend to internationalise technological activaty, and has done this on the basis of its core technological strengths developed historically at a national and corporate level. The research and innovation infrastructure of the economy remains strong, and German companies are locating abroad in the industries which are the most science-based, which are supportive of domestically-based core technologies and in which they hold the strongest competitive position relative to other European firms. German-owned companies retain their dominance of German-located R & D in five key industries—electronics, chemicals, pharmaceuticals, metals and motor vehicles—and they have developed technological specialisms clearly focused on the core technologies of these industries, at home and now also abroad.

Suggested Citation

  • Cantwell, John & Harding, Rebecca, 1998. "The Internationalisation of German Companies' R&D," National Institute Economic Review, National Institute of Economic and Social Research, vol. 163, pages 99-115, January.
    • Handle: RePEc:cup:nierev:v:163:y:1998:i::p:99-115_11
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    Cited by:

    1. John Cantwell & Simona Iammarino, 2000. "Multinational Corporations and the Location of Technological Innovation in the UK Regions," Regional Studies, Taylor & Francis Journals, vol. 34(4), pages 317-332.
    2. Michele Cincera & Bruno van Pottelsberghe de la Potterie & Veugelers Reinhilde, 2006. "Assessing the foreign control of production of technology: The case of a small open economy," Scientometrics, Springer;Akadémiai Kiadó, vol. 66(3), pages 493-512, March.
    3. John Cantwell & Elena Kosmopoulou, 2001. "Determinants of Internationalisation of Corporate Technology," DRUID Working Papers 01-08, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.

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