Home base-compensating R&D: Indicators, public policy, and ramifications for multinational firms
The situation in which a multinational firm compensates for comparative weakness in home-country R&D by locating vital R&D activities in foreign countries with a stronger R&D base has generally been considered a fairly marginal phenomenon. Yet home base-compensating R&D by MNCs is more prevalent and more important in its effects than generally assumed. Given intensifying competition among nations for R&D investment by MNCs, home base-compensating R&D may help stimulate R&D reform in the home country, as illustrated with the example of German biotechnology. The probability that home base-compensating R&D can stimulate R&D reform in the firm's home country is highest when practiced by "high-profile players" in sectors that are science-based and that are either strategic (inter-industry economic and knowledge spillovers), feature above-average growth, and/or are of high political importance. To the extent that home base-compensating R&D by MNCs can potentially encourage policy reforms in their home country, this adds a new level of complexity to discussions about the role of corporations in influencing public policy as a component of their corporate social responsibility.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 17 (2011)
Issue (Month): 1 (March)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/601266/bibliographic|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cantwell, John & Janne, Odile, 1999. "Technological globalisation and innovative centres: the role of corporate technological leadership and locational hierarchy1," Research Policy, Elsevier, vol. 28(2-3), pages 119-144, March.
- Fransman, Martin, 1999. "Visions of Innovation: The Firm and Japan," OUP Catalogue, Oxford University Press, number 9780198289357, May.
- Weijian Shan & Jaeyong Song, 1997. "Foreign Direct Investment and the Sourcing of Technological Advantage: Evidence from the Biotechnology Industry," Journal of International Business Studies, Palgrave Macmillan, vol. 28(2), pages 267-284, June.
- Patel, Pari, 1995. "Localised Production of Technology for Global Markets," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 141-53, February.
- Granstrand, Ove, 2000. "The shift towards intellectual capitalism -- the role of infocom technologies1," Research Policy, Elsevier, vol. 29(9), pages 1061-1080, December.
- Tijssen, Robert J. W. & van Wijk, Erik, 1999. "In search of the European Paradox: an international comparison of Europe's scientific performance and knowledge flows in information and communication technologies research," Research Policy, Elsevier, vol. 28(5), pages 519-543, June.
- Steven Casper & Hannah Kettler, 2001. "National Institutional Frameworks And The Hybridization Of Entrepreneurial Business Models: The German And Uk Biotechnology Sectors," Industry and Innovation, Taylor & Francis Journals, vol. 8(1), pages 5-30.
- Tzeng, Cheng-Hua, 2008. "Developing high-technology latecomer firms to compete internationally: A three-sector growth model," Journal of International Management, Elsevier, vol. 14(2), pages 190-206, June.
- Eickelpasch, Alexander & Fritsch, Michael, 2005.
"Contests for cooperation--A new approach in German innovation policy,"
Elsevier, vol. 34(8), pages 1269-1282, October.
- Alexander Eickelpasch & Michael Fritsch, 2005. "Contests for Cooperation: A New Approach in German Innovation Policy," Discussion Papers of DIW Berlin 478, DIW Berlin, German Institute for Economic Research.
- Eickelpasch, Alexander & Fritsch, Michael, 2005. "Contests for Cooperation: A New Approach in German Innovation Policy," Freiberg Working Papers 2005,03, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
- Beise, Marian & Stahl, Harald, 1998.
"Public research and industrial innovations in Germany,"
ZEW Discussion Papers
98-37, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Beise, Marian & Stahl, Harald, 1999. "Public research and industrial innovations in Germany," Research Policy, Elsevier, vol. 28(4), pages 397-422, April.
- Ambos, Bjorn, 2005. "Foreign direct investment in industrial research and development: A study of German MNCs," Research Policy, Elsevier, vol. 34(4), pages 395-410, May.
- Jasanoff, Sheila, 1985. "Technological innovation in a corporatist state: The case of biotechnology in the Federal Republic of Germany," Research Policy, Elsevier, vol. 14(1), pages 23-38, February.
- 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.
- Bas, Christian Le & Sierra, Christophe, 2002. "'Location versus home country advantages' in R&D activities: some further results on multinationals' locational strategies," Research Policy, Elsevier, vol. 31(4), pages 589-609, May.
- Li, Jiatao & Kozhikode, Rajiv Krishnan, 2009. "Developing new innovation models: Shifts in the innovation landscapes in emerging economies and implications for global R&D management," Journal of International Management, Elsevier, vol. 15(3), pages 328-339, September.
- Guth, William D., 2009. "Developing new avenues for growth: Challenges presented by five trends in the global environment," Journal of International Management, Elsevier, vol. 15(3), pages 251-261, September.
- Chen, Dong & Newburry, William & Park, Seung Ho, 2009. "Improving sustainability: An international evolutionary framework," Journal of International Management, Elsevier, vol. 15(3), pages 317-327, September.
- Beise, Marian & Rennings, Klaus, 2005. "Lead markets and regulation: a framework for analyzing the international diffusion of environmental innovations," Ecological Economics, Elsevier, vol. 52(1), pages 5-17, January.
- Kneller, Robert, 2003. "Autarkic drug discovery in Japanese pharmaceutical companies: insights into national differences in industrial innovation," Research Policy, Elsevier, vol. 32(10), pages 1805-1827, December.
- Paul Almeida & Bruce Kogut, 1999. "Localization of Knowledge and the Mobility of Engineers in Regional Networks," Management Science, INFORMS, vol. 45(7), pages 905-917, July.
- Cristiano Antonelli, 2006. "The Business Governance of Localized Knowledge: An Information Economics Approach for the Economics of Knowledge," Industry and Innovation, Taylor & Francis Journals, vol. 13(3), pages 227-261.
- Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
- Kaiser, Robert & Prange, Heiko, 2004. "The reconfiguration of National Innovation Systems--the example of German biotechnology," Research Policy, Elsevier, vol. 33(3), pages 395-408, April.
- Kuemmerle, Walter, 1999. "Foreign direct investment in industrial research in the pharmaceutical and electronics industries--results from a survey of multinational firms," Research Policy, Elsevier, vol. 28(2-3), pages 179-193, March.
- Wilbur Chung & Juan Alcácer, 2002. "Knowledge Seeking and Location Choice of Foreign Direct Investment in the United States," Management Science, INFORMS, vol. 48(12), pages 1534-1554, December.
- Dohse, Dirk, 2000. "Technology policy and the regions -- the case of the BioRegio contest," Research Policy, Elsevier, vol. 29(9), pages 1111-1133, December.
- Krishnan, Balaji C., 2006. "Towards intellectual globalization: A theoretical exploration and its implications for research," Journal of International Management, Elsevier, vol. 12(2), pages 196-207, June.
- Javalgi, Rajshekhar (Raj) G. & Dixit, Ashutosh & Scherer, Robert F., 2009. "Outsourcing to emerging markets: Theoretical perspectives and policy implications," Journal of International Management, Elsevier, vol. 15(2), pages 156-168, June.
- Audretsch, David B. & Feldman, Maryann P., 2004. "Knowledge spillovers and the geography of innovation," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 61, pages 2713-2739 Elsevier.
- Gittelman, Michelle, 2006. "National institutions, public-private knowledge flows, and innovation performance: A comparative study of the biotechnology industry in the US and France," Research Policy, Elsevier, vol. 35(7), pages 1052-1068, September.
When requesting a correction, please mention this item's handle: RePEc:eee:intman:v:17:y:2011:i:1:p:42-53. 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: (Zhang, Lei)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.