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Intra-firm technology transfer and R&D in foreign affiliates: Substitutes or complements? Evidence from Japanese multinational firms

  • Belderbos, Rene
  • Ito, Banri
  • Wakasugi, Ryuhei

R&D in foreign affiliates and technology transferred from their parent firms are important potential drivers of productivity in host countries. In this paper we examine the simultaneous impact of local R&D and intra-firm international technology transfer on productivity growth in foreign affiliates. We estimate a dynamic productivity model on a large sample of Japanese manufacturing affiliates worldwide in 1996-1997 and 1999-2000. We find that both affiliate R&D and intra-firm technology transfer contribute to productivity growth, while technology transfer exhibits decreasing marginal returns. The two sources of technology are complements: use of one source of technology increases the marginal impact of the other. J. Japanese Int. Economies 22 (3) (2008) 310-319.

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Article provided by Elsevier in its journal Journal of the Japanese and International Economies.

Volume (Year): 22 (2008)
Issue (Month): 3 (September)
Pages: 310-319

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Handle: RePEc:eee:jjieco:v:22:y:2008:i:3:p:310-319
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622903

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